Your coverage options when you work for yourself
Marketplace plans
For many self-employed people, the ACA Marketplace is the starting point. Plans cover pre-existing conditions and essential health benefits, and you may qualify for premium tax credits based on your estimated income for the year.
ACA plans bought directly
You can also buy ACA-compliant plans directly from an insurer or through an agent. Coverage rules are the same, but income-based tax credits are only available through the Marketplace.
High-deductible plans with an HSA
If you’re generally healthy, an HSA-eligible high-deductible health plan can lower premiums and let you save for medical costs in a Health Savings Account. HSA contributions are generally tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
A spouse’s employer plan
If your spouse has access to a job-based plan, joining it may be the simplest and most affordable option. Compare it against what you could get on your own.
Short-term coverage as a bridge
Short-term plans can fill a brief gap where they’re allowed, but they often exclude pre-existing conditions and don’t cover all essential benefits. They’re best viewed as temporary, not a long-term solution.
Estimating income when it changes
Marketplace savings are based on your expected income for the year, which can be tricky when your earnings rise and fall. A few tips:
- Start with last year’s net self-employment income and adjust for contracts you know are coming or ending.
- Update your Marketplace application if your income changes significantly during the year, so your tax credit stays close to what you’ll qualify for.
- Keep records. Any difference between the tax credit you received and the amount you qualify for is reconciled when you file your taxes.
The self-employed health insurance deduction
If you have net profit from self-employment and aren’t eligible for an employer-subsidized plan (including through a spouse’s job), you may be able to deduct health insurance premiums you pay for yourself, your spouse, and your dependents. Rules and limits apply, so check with a tax professional about your situation.
Tips for choosing a plan
- Look at total cost, not just the premium. Factor in the deductible, copays, and maximum out-of-pocket cost.
- Check the network. Make sure the doctors and hospitals you use are in network.
- Review your prescriptions. Confirm your medications are on the plan’s drug list.
- Ask an agent. A licensed agent can compare plans from multiple insurers in your state at no extra cost to you.
Please note: LocalQuotes.online is not an insurance company, agency, or broker and is not affiliated with HealthCare.gov or any government agency. We connect you with licensed agents and marketing partners who may contact you about plans. Not all plans are available in all states, and plan details vary. We may be compensated by the agents and partners we connect you with. This page is general information, not insurance, legal, or tax advice.