For most solo self-employed Floridians, buying an individual ACA marketplace plan is better than a group or association plan, because premium tax credits are only available on the marketplace and ACA plans fully cover pre-existing conditions. Group plans make more sense once you have employees, or if your income is above 400% FPL and an ACA-compliant group plan prices better.
One of the most common questions self-employed Floridians ask a broker is whether they’re better off buying health insurance on their own through the ACA marketplace or finding some kind of group plan. It’s a reasonable question — group insurance has long been associated with better coverage and lower costs. But the landscape for self-employed people is more nuanced than that reputation suggests, and for many Floridians, the seemingly obvious answer turns out to be wrong. Let’s work through it.
The Two Main Paths
As a self-employed Floridian, you’re generally looking at two types of health coverage:
- Individual marketplace plan — purchased through healthcare.gov, available in every Florida county, ACA-compliant, and subsidy-eligible based on your income.
- Group plan — either through a professional association or chamber of commerce, or through a small group plan if you have employees.
Each has real advantages in the right situation. The key is understanding which situation you’re actually in.
Individual Marketplace Plans: The Case For Them
Florida has a robust individual marketplace. For 2027, Floridians can choose from carriers including Florida Blue, Ambetter from Sunshine Health, Oscar, UnitedHealthcare, AvMed, AmeriHealth Caritas, and 22 Health, depending on county. (Cigna and Molina are leaving Florida’s individual market for 2027.) Every plan is ACA-compliant, meaning pre-existing conditions are fully covered, essential health benefits are included, and your out-of-pocket costs are capped each year.
The advantages for self-employed buyers are significant:
- Subsidies. If your projected annual income falls between 100% and 400% of the federal poverty level (about $15,960 to $63,840 for a single person using 2026 guidelines), you may qualify for premium tax credits that dramatically reduce your monthly cost. These subsidies are only available on the individual marketplace.
- No minimum participation requirements. You don’t need employees or partners. You buy it for yourself.
- No minimum employer contribution. Because there’s no employer, you simply pay the premium (minus any subsidy).
- Wide plan selection. Bronze, Silver, Gold, and Platinum tiers give you control over how you balance premiums against out-of-pocket costs.
- Pre-existing condition protection. Carriers cannot charge you more or deny coverage based on your health history.
The main drawback is straightforward: you pay the full premium yourself. Without a subsidy, marketplace premiums in Florida can be substantial, and proposed 2027 Florida individual rates are up an average of 15.3%. With a premium tax credit, the same plan can cost far less. Our guide to how much health insurance costs for self-employed people breaks down the variables.
Group Plans Through Associations: Look Carefully Before You Buy
Many professional associations, trade groups, and chambers of commerce offer health coverage to members. The pitch is appealing: group negotiating power, often lower premiums, access to plans you can’t find on the individual market.
The reality is more complicated.
- Quality varies enormously. Some association plans are genuinely competitive and ACA-compliant. Others are not — and the difference matters a great deal when you actually need care.
- Not all association plans comply with ACA rules. Some are short-term plans or limited-benefit plans in disguise, which can exclude coverage for pre-existing conditions, cap annual benefits, and leave you exposed in exactly the situations you need coverage most.
- No subsidies. Association plans are not purchased through the marketplace, so you cannot apply premium tax credits to them. If you’re subsidy-eligible, buying an association plan instead means paying full price for coverage that may be inferior to what you could get on the marketplace.
- Carrier instability. Some association health plans have a history of switching carriers, changing benefits, or dissolving entirely — leaving members scrambling mid-year.
That said, if you’re in a well-established professional association with a long-running, ACA-compliant group plan and you have high enough income that you don’t qualify for subsidies, it’s worth getting a real quote and comparing it against marketplace options.
Small Group Plans: When You Have Employees
If you have between 1 and 50 employees, you can purchase a small group health insurance plan in Florida. These plans are ACA-compliant, and your premium contributions as an employer are fully tax-deductible as a business expense.
The requirements to be aware of:
- Most small group plans require at least 70% of eligible employees to participate — employees who waive because they have other coverage typically don’t count against this threshold.
- Most carriers require the employer to contribute at least 50% of the employee’s premium.
- Group premiums are rising too: Florida’s remaining small-group carriers proposed an average increase of 11.4% for 2027.
The tradeoff: administering a group plan involves more paperwork, carrier negotiations, and HR responsibility than simply enrolling individuals in marketplace plans.
The ICHRA: A Third Option Worth Knowing
If you have employees and want to offer health benefits without the complexity of a group plan, consider an Individual Coverage HRA (ICHRA). An ICHRA allows you to reimburse employees a set monthly amount for their own individual marketplace plans, completely tax-free to both you and the employee. No group plan needed, no participation minimums, no carrier negotiations. Each employee picks the plan that works best for them, and you reimburse them up to a defined amount.
If you have fewer than 50 employees and no group plan, a QSEHRA is another option (2026 limits: $6,450 self-only, $13,100 family). ICHRAs have become increasingly popular among small Florida businesses precisely because they offer employer-level tax advantages with individual-level flexibility.
The Subsidy Factor: The Decision That Changes Everything
If there is one factor that should drive this entire decision, it’s subsidy eligibility.
ACA premium tax credits are available only through the individual marketplace on healthcare.gov. They are income-based and can be substantial for lower- and middle-income households. But the enhanced subsidies expired after 2025, and the 400% FPL cliff is back: above roughly $63,840 for a single person or $86,560 for a couple, you get no credit at all. See do self-employed people qualify for health insurance subsidies.
If you qualify for meaningful subsidies and you’re considering an association or group plan instead, you’re almost certainly paying more for less. Run the numbers before you decide.
Who Each Option Makes Sense For
Individual Marketplace Plan Is Usually Best For:
- Solo self-employed Floridians with income that qualifies for subsidies
- Freelancers, contractors, and sole proprietors without employees
- Anyone with a pre-existing condition who needs guaranteed coverage
- People who want carrier and plan flexibility year to year
Group or Association Plans May Make Sense For:
- Self-employed individuals with high income who don’t qualify for subsidies
- Those with employees who want to offer employer-sponsored benefits
- Members of specific professional associations with well-established, ACA-compliant group coverage
The Bottom Line for Most Solo Self-Employed Floridians
Check your subsidy eligibility first — before you look at any other option. For most solo self-employed Floridians earning under 400% FPL (about $63,840 for a single person), the individual marketplace with premium tax credits will usually outperform a group or association plan on price, coverage quality, and protections. Above that line, compare on- and off-exchange ACA plans and any ACA-compliant group options side by side. Read more in comparing marketplace vs. private insurance for self-employed.
Frequently Asked Questions
Can a self-employed person with no employees buy a group health plan?
Generally, no. Florida small group plans require at least one eligible employee who is not the owner or owner’s spouse. Some professional associations offer coverage to members, but quality varies and some are not ACA-compliant. For most solo business owners, an individual ACA plan, on or off the marketplace, is the main path.
Are association health plans ACA-compliant?
Some are and some aren’t. Certain association offerings are really short-term or limited-benefit plans that can exclude pre-existing conditions and cap benefits. They also can’t be paired with marketplace premium tax credits. Before buying, confirm in writing that the plan is ACA-compliant major medical coverage and compare it with a marketplace quote.
What income qualifies for marketplace subsidies in 2027?
For 2027 coverage, premium tax credits are generally available to households between 100% and 400% of the federal poverty level, based on 2026 guidelines. That’s about $15,960 to $63,840 for one person and $33,000 to $132,000 for a family of four. The enhanced subsidies expired, so households above 400% FPL get no credit.
Is an ICHRA a good option if I have a few employees?
It can be. An ICHRA lets you reimburse employees tax-free for individual plans they choose, with no participation minimums. It works best when employees value choice and you want a predictable budget. If the ICHRA is affordable, employees can’t also claim marketplace credits, so model the numbers against a small group plan and a QSEHRA.
If you’re self-employed in DeLand, Volusia County, or anywhere in Florida and want a side-by-side comparison of individual marketplace options versus any group plan you’re considering, get the numbers before Open Enrollment for 2027 begins November 1, 2026. Michael McAllister, owner of Choice Health Insurance Brokers in DeLand, is a licensed broker appointed with 200 carriers (NPN 18229135) and there is no cost to work with him. Call or text 321-230-9536 or visit choice.healthcare to get started.