This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2026. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
Health Insurance for Self-Employed
Coverage options for freelancers, independent contractors, and small business owners without employer coverage.
Full Definition
Self-employed individuals have several health insurance options: ACA Marketplace plans (often with subsidies if income is between 100–400% FPL, or up to any income level under enhanced subsidies); COBRA continuation coverage from a previous employer (up to 18 months); a spouse's employer plan; professional association group plans; or short-term health insurance for temporary gaps. Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents from federal income taxes (not subject to the 7.5% AGI floor for medical expense deductions). This deduction significantly reduces the net cost of premiums.
Real-World Example
A freelance designer earns $55,000/year and has no employer coverage. They purchase a Silver marketplace plan at $480/month. With ACA subsidies, their premium drops to $210/month. They also deduct the full $2,520 paid in premiums from their taxable income, saving an additional $554 in federal taxes.
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