Health Insurance Series
Health · Self-Employed
Health Coverage
When You Work for Yourself
Self-employed people face health insurance differently than W-2 employees. The good news: you have more options + better tax treatment. The catch: nobody automatically signs you up, and the wrong choices get expensive fast.
of self-employed health insurance premiums are tax-deductible
Above-the-line deduction — meaning you take it even if you don't itemize. Reduces both income tax AND self-employment tax. Often saves $3K-$10K/year compared to W-2 employees on similar coverage.
Your three real options
Marketplace plan + subsidy strategy
ACA marketplace with income-based subsidies. As a self-employed person, you have control over your taxable income (retirement contributions, business expenses) — which means you can OPTIMIZE for subsidy thresholds. A few thousand in extra deductions can save tens of thousands in subsidies.
Spouse's employer plan
If your spouse has employer coverage, often the simplest answer. Compare total cost vs. marketplace + subsidies before deciding — sometimes self-employed marketplace beats joining a spouse's plan.
Health Share / Direct Primary Care
Not insurance, but alternatives. Health-sharing ministries (Liberty HealthShare, Christian Healthcare Ministries) split costs among members. DPC arrangements give you primary care for a monthly fee. Cheaper, but no ACA protections — pre-existing conditions can be excluded. Suitable for healthy people willing to take risk.
The subsidy cliff (and how to manage it)
Premium subsidies phase out as income rises. The exact thresholds change yearly, but at the top end ($60K-$120K depending on family size), going $1K over a threshold can cost you $5K+ in lost subsidy.
Self-employed people have powerful levers to stay below thresholds: max your SEP-IRA or Solo 401(k), accelerate deductible business expenses, defer December invoices to January. Coordinate with your CPA. The savings are real.
Optimize your coverage + tax setup
We'll work with you (and your CPA if you have one) to combine marketplace plan selection, retirement contributions, and business deduction timing for maximum total savings.
Carriers We Represent
We're independent — we shop the market for the policy that fits, not the highest commission.
Carrier logos shown are trademarks of their respective owners. We work with additional regional carriers — ask about a specific plan.
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