Health Insurance When You're Self-Employed
How do self-employed people get health insurance?
Self-employed people generally buy individual or family coverage directly — through the Health Insurance Marketplace, where income-based financial help may be available, or privately outside it. Business owners with employees may also have group coverage available to them.
Without an employer contribution, the full premium sits with you, so the premium-versus-exposure tradeoff becomes a business decision as much as a personal one.
Variable income complicates it further: the premium has to be sustainable in a slow month, not just an average one.
How your business is structured can affect both your options and the tax treatment of what you pay. That part belongs with your tax professional.
Important exceptions
- Marketplace financial help depends on estimated household income and other factors, and it is reconciled at tax time.
- Adding employees changes what is available to your business.
- Availability of specific products varies by state.
Dave's perspective
“Self-employed clients often ask me for the cheapest plan. What they usually mean is the most sustainable plan. Those are different questions, and the second one is the one worth answering.”
Dave Gagleard · Dave Knows Health
Related information
Plan availability, eligibility, benefits, exclusions, underwriting requirements, enrollment periods and coverage vary by carrier, product and state.