Your Major Self-Employed Health Insurance Options in Southeastern Connecticut
If you're self-employed in Southeastern Connecticut, you have several health insurance options to consider. The right choice depends on your income, family situation, healthcare needs, business structure, and whether you're approaching retirement.
1. Access Health CT and ACA Marketplace Plans
For many self-employed individuals, Access Health CT is the logical place to start. Connecticut's official health insurance marketplace allows you to compare ACA-compliant plans and determine whether you qualify for financial assistance. Access Health CT is also the only place where Connecticut residents can qualify for Marketplace financial assistance and, when eligible, enroll in HUSKY Health or the Covered CT Program. Your household income, household size, and other information are used to determine what assistance you may qualify for. Learn more about financial help through Access Health CT. (Access Health CT)
2. HUSKY Health During Lower-Income Years
HUSKY Health is particularly important for self-employed individuals whose income can fluctuate or a leaving a corporate job to become self employed. HUSKY is Connecticut's Medicaid and Children's Health Insurance Program, and eligible individuals can receive low-cost or free coverage. One of the advantages of using Access Health CT is that you don't have to determine eligibility for HUSKY completely on your own. Access Health CT uses a single application to determine whether you qualify for HUSKY, a Qualified Health Plan with financial assistance, or another available program. If your business has a lower-income year, it's worth checking your eligibility rather than assuming you have to continue paying for an individual plan. See Access Health CT's explanation of HUSKY and other low-cost programs. (Access Health CT)
3. Eastern Connecticut Chamber of Commerce Health Insurance
If you're a business owner, sole proprietor, or 1099 contractor in the region, don't overlook the Chamber of Commerce of Eastern Connecticut's health insurance program. Through a partnership with Morin Associates and Triad Benefits, the Chamber offers members access to group health benefits, including major medical plans. The program is available to qualifying businesses with as few as one person, including sole proprietors and 1099 contractors. The Chamber currently advertises potential premium savings of 15%–25%, although your actual cost and savings will depend on your circumstances and the plan you select. For a Southeastern Connecticut business owner, this creates another option to compare against an ACA Marketplace plan. See the Chamber of Commerce of Eastern Connecticut's health insurance program. (ChamberECT)
4. Coverage Through a Spouse’s Employer — and Whether COBRA Fits In
If your spouse has access to employer-sponsored health insurance, don’t assume that purchasing your own individual plan is automatically the better move. Employer coverage often comes with advantages such as a broader provider network, different deductible structures, and—importantly—the employer may subsidize a portion of the premium. That subsidy can make employer coverage significantly more cost‑effective than buying an individual plan on your own.
That said, the cost of adding a spouse or family member varies widely between employers. Some employers contribute generously toward dependent coverage, while others pass most of the cost on to employees. For self‑employed couples, it’s worth comparing the total household cost of staying on the employer plan versus having the self‑employed spouse enroll separately through Access Health CT or another marketplace.
There’s also a tax wrinkle to keep in mind: you cannot take the self‑employed health insurance deduction if you were eligible to participate in a health plan subsidized by your spouse’s employer. Even if you decline that coverage, eligibility alone can disqualify you. (See IRS rules for the self‑employed health insurance deduction.)
What About COBRA?
COBRA may also be an option if your spouse recently left a job or lost employer coverage. COBRA allows you to temporarily continue the employer plan, but you’ll typically pay 100% of the premium plus a 2% administrative fee. While COBRA can provide continuity of care and access to the same doctors, it is often more expensive than marketplace coverage—especially if you qualify for ACA subsidies.
COBRA can make sense when:
You’re in the middle of treatment and want to avoid network disruption
You’ve already met your deductible for the year
You need coverage only for a short transition period
But for most self‑employed households, comparing COBRA costs against marketplace plans (with or without subsidies) is essential before deciding.See the IRS rules for the self-employed health insurance deduction. (IRS)
5. Private Individual Health Insurance
You can also purchase individual health insurance outside of Access Health CT. This may be worth considering in certain circumstances, particularly if you don't qualify for Marketplace financial assistance or have specific coverage needs. However, there is an important tradeoff: financial assistance for Qualified Health Plans is available through Access Health CT, so buying an individual plan outside the Marketplace can mean giving up assistance you might otherwise qualify for. Before choosing an off-Marketplace plan, compare the total cost—including premiums, deductibles, copays, coinsurance, provider networks, prescription coverage, and your potential out-of-pocket maximum—with the plans available through Access Health CT. Compare plans and financial assistance through Access Health CT. (Access Health CT)
6. Small-Business Group Health Insurance
If your business has employees, you may have another option: small-business group health insurance. The options available to you will depend on your business structure, number of employees, and the applicable rules. Group coverage can provide a way to offer health benefits to employees while potentially covering the business owner as well. The Eastern Connecticut Chamber's program is one local example of a group health arrangement available to qualifying businesses, including businesses with as few as one person. See the Chamber's current group health insurance options for small businesses. (ChamberECT)
7. Short-Term Health Insurance
Short-term health insurance can sometimes provide a temporary bridge when you have a gap in coverage, but it should be approached differently from comprehensive ACA coverage. Short-term policies can have limitations that aren't present with ACA-compliant plans, so you need to understand exactly what the policy covers, what it excludes, and how long the coverage will last. For someone who is self-employed, saving money on the monthly premium isn't necessarily a good tradeoff if the policy leaves you exposed to significant medical expenses. Before using short-term coverage, compare the actual benefits and exclusions with your other available options.
Don't Compare Health Insurance Based Only on the Premium
Once you've identified the options available to you, the next step is comparing the total potential cost.
A $400 monthly premium isn't necessarily cheaper than a $600 monthly premium.
You also need to consider:
Deductible
Copays
Coinsurance
Prescription costs
Provider networks
Out-of-pocket maximum
Expected healthcare usage
Employer or business contributions
Potential tax benefits
Eligibility for ACA financial assistance or HUSKY
Access Health CT itself recommends looking beyond the monthly premium and considering your deductible, copayments, and coinsurance when comparing plans. Its Plan Compare tool also allows consumers to consider factors such as in-network doctors and prescriptions. (Access Health CT)
For a healthy person who rarely uses medical care, a lower-premium plan may make sense. For someone who regularly sees specialists, takes expensive medications, or expects significant medical expenses, a plan with a higher premium but lower out-of-pocket costs may result in a lower total cost for the year.
The important thing is to compare the whole picture, not just the monthly premium.
Your Health Insurance Can Change as Your Business Changes
One of the biggest challenges of being self-employed is that your income isn't always predictable.
Your business might have an unusually profitable year followed by a slower year. You may reduce your workload, sell your business, or begin transitioning toward retirement.
Those changes can affect your health insurance options.
That's why health insurance should be reviewed as part of your broader financial plan—not treated as a decision you make once and forget about.
For self-employed individuals and business owners in Southeastern Connecticut, the key is to know all of the options available to you before choosing a plan.
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About the Author
Marc Lowe, CFP® is a fee-only fiduciary advisor based in Waterford, CT, helping small business owners & families make smarter financial decisions.
The information presented in this article is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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