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Freelancers Union vs ACA: Best Health Plan for 1099 Workers
Freelancers Union offers group health insurance through Freelancers Insurance Company in 7 states. ACA marketplace plans are available everywhere. Here's how they compare for self-employed workers in 2026.
⚡ Quick Verdict
Choose Freelancers Union if you live in NY, NJ, PA, FL, GA, TX, or CA — group rates often beat ACA by 15-30%. Choose ACA marketplace everywhere else, especially if you qualify for premium tax credit subsidies.
Side-by-Side Comparison
| Feature | Freelancers Union | ACA Marketplace |
|---|---|---|
| Available States | NY, NJ, PA, FL, GA, TX, CA only | All 50 states + DC |
| Plan Type | Group health insurance | Individual ACA plans |
| Premium Subsidies Available | No | Yes (if income < 400% FPL) |
| Average Monthly Premium (Bronze) | $320 | $450 |
| Average Monthly Premium (Silver) | $430 | $580 |
| Average Monthly Premium (Gold) | $580 | $720 |
| Network Quality | Limited (state-specific) | Varies by carrier |
| Pre-existing Conditions | Covered | Covered (ACA mandate) |
| Membership Fee | $30/year (Freelancers Union) | None |
| Open Enrollment | Year-round (with proof of freelance work) | Nov 1 - Jan 15 |
| Dental & Vision | Add-on plans available | Separate ACA plans |
| Best For Income Level | $60K+ (no ACA subsidies) | Under $60K (with subsidies) |
Which Should You Choose?
Choose Freelancers Union if...
- ✓ You live in NY, NJ, PA, FL, GA, TX, or CA
- ✓ Your income is over $60K (no ACA subsidies anyway)
- ✓ You can document consistent freelance work (required for membership)
- ✓ Group rates in your state beat ACA pricing (varies)
- ✓ You want the union benefits: legal advice, retirement planning, networking
Choose ACA Marketplace if...
- ✓ You live outside the 7 Freelancers Union states
- ✓ Your income is under $60,240 (qualify for premium tax credits)
- ✓ You want maximum carrier and network choice
- ✓ You want zero membership requirements
- ✓ You have a qualifying life event for special enrollment
- ✓ You prefer working with a healthcare.gov navigator
Frequently Asked Questions
It depends on income and state. For freelancers earning over $60K (above ACA subsidy threshold) in NY, NJ, or CA, Freelancers Union group rates can be 15-30% cheaper. For freelancers earning under $40K who qualify for full ACA subsidies, marketplace plans are almost always cheaper.
Yes. Membership is $30/year and requires documenting that you work as a freelancer or independent contractor. Membership also includes legal templates, networking events, and other benefits beyond insurance.
Yes, Freelancers Union accepts year-round enrollment as long as you can prove you're freelancing. ACA marketplace plans can only be left during open enrollment (Nov 1 - Jan 15) unless you have a qualifying life event.
You'd need to switch to ACA marketplace coverage. Freelancers Union plans only cover residents of NY, NJ, PA, FL, GA, TX, and CA. Moving triggers a qualifying life event for ACA enrollment.