Health Insurance
What are the best health insurance options for self-employed people?
Self-employed people have four main health insurance options: (1) ACA marketplace plans — may qualify for subsidies based on net income; 100% of premiums are deductible from federal income tax. (2) Health sharing ministries — not insurance, but lower cost; limited coverage. (3) Spouse's employer plan — if available, often the most cost-effective option. (4) Professional association group plans — available in some industries. The ACA marketplace with the self-employed premium deduction is often the best combination of coverage and cost.
Key Points
- ACA marketplace: may qualify for subsidies; 100% of premiums are tax-deductible
- Self-employed premium deduction: reduces your adjusted gross income dollar-for-dollar
- Spouse's employer plan: often the most cost-effective if available
- Professional association group plans: available in some industries
- Health sharing ministries: lower cost but not insurance — limited coverage
- An independent agent compares all options and calculates your exact subsidy