Health coverage if you’re self-employed
If you’re self-employed, you can use the individual Health Insurance Marketplace® to enroll in flexible, high-quality health coverage that works well for people who run their own businesses.
You’re considered self-employed if you have a business that takes in income but doesn’t have any employees.
You can enroll through the Marketplace if you’re a freelancer, consultant, independent contractor, or other self-employed worker who doesn’t have any employees. If your business has even one employee (other than yourself, a spouse, family member, or owner), you may be able to use the SHOP Marketplace for small businesses to offer coverage to yourself and your employees. See “How do I know if I’m self-employed or a small employer?” to learn more.
Coverage options for the self-employed
- When you fill out a Marketplace application, you’ll find out if you qualify for premium tax credits and other savings on a health plan. This will be based on your income and household size.
- You’ll also find out if you qualify for free or low-cost coverage through the Medicaid and CHIP programs in your state. This will depend on your income, household size, and other factors.
- Do a quick check to see if your expected income is in the range to save.
In the Marketplace you can choose from several categories of coverage, from plans with low premiums that mainly protect you in worst-case scenarios to plans where you’ll pay more each month but less out-of-pocket when you get health care services.
Self-employment income and Marketplace savings
When you fill out a Health Insurance Marketplace® application, you’ll have to estimate your net self-employment income. Marketplace savings are based on your estimated net income for the year you’re getting coverage, not last year’s income.
The Individual Marketplace
The Individual Marketplace offers flexible, quality coverage for people who:
- Run their own businesses
- Are self-employed with no employees
- Work as freelancers or consultants
All plans in the Marketplace cover the same categories of essential health benefits and are prohibited from excluding treatment based on pre-existing conditions. You can also choose between plans with lower premiums and higher cost-sharing when you need care, or higher monthly payments and lower cost-sharing when you need care.
You can only enroll in Marketplace coverage during the annual Open Enrollment Period, unless you have a qualifying life event during the year.
Looking for help with coverage? Find an agent or broker in your area. Agents and brokers are experts in health insurance and can help you find the coverage you need if they have completed registration with the Marketplace, generally at no extra cost to you.
Qualifying for Marketplace savings
To get a premium tax credit or reduction of your out-of-pocket costs, you’ll need to provide an estimate of your household income to the Marketplace for the year you’re getting coverage. This can be challenging for business owners whose income may vary. You should provide your best estimate. Talk to your tax professional for advice on how to estimate your household income.
If you qualify for a premium tax credit and/or reduction of your out-of-pocket costs and your expected household income changes during the year, you should return to the Marketplace and update your estimated income as soon as possible. At the end of the year, if you make more than what you reported to the Marketplace, you may have to pay back some or all of the premium tax credits that you received in advance. If you make less, you could get additional premium tax credits when you file your taxes.