February 24, 2021

For anyone who does not receive healthcare coverage through an employer, it’s up to you to find self employed health insurance. Health insurance for self employed individuals is available through the Federal government as well as private insurers. And, being your own boss comes with some tax perks when it comes to deductions.

Learn everything you need to know about getting health coverage under a self-employed insurance policy. Find out what health care options are available to you, and whether you qualify as a self employed individual. And, see how to determine which insurance plan is right for you.  

How Does Self Employed Health Insurance Work in 2021?

Self employed health insurance can provide equivalent coverage as that from an employer, or you can find insurance on a budget. Health coverage is essential – whether your business has one employee or 1,000. But, as the self-employed owner of a business, you can take an extra income tax deduction for your health insurance costs. 

The Health Insurance Marketplace provides a consolidated hub to get quotes from all the major healthcare insurers. And, you can specifically search for a policy designed for self-employed individuals

Self-Employed vs Small Business: Which Are You?

When it comes to qualifying for self employed health coverage, it’s a matter of numbers. If you are the only employee in a business, which you run, then you qualify. But, do you have one or more employees?

If you even have a single employee you might qualify for a small business health insurance plan through the Health Insurance Marketplace. A small business policy might add the benefit of providing coverage for a spouse or family member, as well as yourself. Ask yourself, do you run an income-generating business that has zero employees? 

If the answer is, yes, you are probably eligible for self employed health insurance through the Individual Marketplace. An employee is someone who receives a W-2 form at tax time from a small business. If your business occasionally hires contractors, they do not count as employees. In which case, you can still qualify as self employed. 

What Coverage Options Exist for Self Employed Individuals?

If you find yourself in a situation where your self-employed income is scarce, see if you qualify for a premium health credit. You can find out if you qualify by filling out a Health Care Marketplace application. Low-income households are determined by the level of gross household income, compared to the size of the household.

If you are having a hard time affording the healthcare options available for self-employed individuals through the Marketplace, you might qualify for Medicaid or CHIP. Medicaid and CHIP are available through your state. And, they afford individuals in need and children healthcare coverage at little to no cost. 

On the Healthcare Marketplace, you will find a range of types of coverage. Each option offers different levels of coverage at an affordable premium. In general, the less you pay on your health care monthly premium, the more the cost of medical care. And, the opposite is true when paying a high monthly premium – it affords you greater coverage on medical expenses. 

If you do not qualify for Medicaid, and can’t afford a general individual policy, think about getting catastrophic health insurance, instead. Those who are under the age of 30 and have no medical pre-existing conditions might qualify for catastrophic insurance.

Insurance Tax Deduction for the Self-Employed

For the self-employed, the cost of your annual health insurance is all deductible. At tax time, you can deduct the premiums you paid over the previous year in the form of monthly health and dental premiums. That means that you subtract the total cost of your insurance from your taxable gross income over the year and receive the difference in your tax return.

But, if your single-person operation lost money over the previous year, you might not be able to claim the deduction in full. Are you ready to take the next step to get insured? Talk to an insurance associate today for a free consultation on finding the right self employed health insurance for you.