Health insurance for the self-employed
When you work for yourself, you are also your own benefits department. Here are your real options for health coverage, plus a tax break most 1099 workers can use.
What it covers
- How it works
- Two main paths: an ACA Marketplace plan, with a subsidy if you qualify, or Affordable Choice for a lower monthly cost.
- Who it suits
- 1099 contractors, freelancers, gig workers, and small-business owners with no group plan.
- Tax break
- Self-employed people can deduct 100% of their health premiums on their tax return, which lowers the real cost.
What it costs
ACA premiums can be lowered by a subsidy based on income; Affordable Choice is a fixed monthly amount.
Hawkins Insurance Group, LLC is not connected with or endorsed by the United States government, the federal Medicare program, or the Health Insurance Marketplace (healthcare.gov). Plan availability and any premium tax credits depend on your household and are estimates until confirmed by the Marketplace at HealthCare.gov.
What is good about it
- You control the plan and the budget
The catch
- No employer to split the cost
- You handle enrollment and renewals
- Income swings can change your subsidy
Common questions
- Yes. If 1099 work is your income and you are not eligible for a spouse's employer plan, you can deduct 100% of your health insurance premiums on your tax return. That deduction is separate from the standard deduction and lowers what the coverage really costs you.
- Yes. Losing job-based coverage is a qualifying event that opens a 60-day Special Enrollment Period, so you can sign up outside the usual window. ACA or Affordable Choice is usually cheaper than continuing your old plan through COBRA.
- Yes, if your ACA plan is a high-deductible health plan. An HSA lets you set aside money for medical costs without paying tax on it, and the money rolls over year to year. Self-employed workers often pair an HSA plan with the premium tax deduction for extra savings.