Is a Group Health Plan Cheaper Than the ACA Marketplace?
Why working owners typically save 25% to 45% vs Healthcare.gov, and what's actually driving the difference.
Short answer: yes, for most self-employed people, a group health plan ends up cheaper than the ACA marketplace. The bigger question is why, and whether that gap actually holds up for your situation.
Why group plans come in lower
When you buy on Healthcare.gov, you're rated as a party of one. Your age, your ZIP, your tobacco use, and that's about it. There's no employer picking up half the tab and no large pool absorbing risk, so the premium reflects exactly one life.
Group plans pool thousands of members together. Risk spreads, and carriers price the plan like any other employer group instead of like an individual. That's the single biggest reason working owners see quotes come back 25% to 45% lower than their marketplace equivalent.
Where the gap can shrink
If you qualify for strong ACA subsidies, the marketplace number you see is already subsidized. For some people that closes the gap. Check both. The calculator on this site compares against the unsubsidized ACA estimate, which is honest but worth cross-referencing if you're low income.
Running the numbers yourself takes about 30 seconds with the rate tool above. Plug in your age, coverage type, and state.