Examples Of Self-Employment
Self-employed individuals are those who work for themselves rather than for an employer. This diverse group includes but is not limited to:
- Single-member LLC owners.
- Small business owners.
- Freelancers & consultants.
- Independent contractors.
- Gig economy workers.
- Online content creators and influencers.
In each of these instances of self-employment, individuals may need to find their own health insurance for themselves and their families.
Coverage Options For The Self-Employed
For those who are self-employed, the Health Insurance Marketplace, established by the Affordable Care Act (ACA), offers a variety of individual and family plans. The Marketplace uses metal levels to categorize its plans: Bronze, Silver, Gold, and Platinum. Bronze plans have the lowest monthly premium, but the highest plan deductible. As the metal levels increase, the monthly premium also gets higher, but the plan deductible decreases.
How Much Is Health Insurance For The Self-Employed?
The cost of individual and family health insurance varies based on the plan metal level, as well as the person's age, household income, and where they live. For those who are eligible, there are subsidies that may help lower the monthly cost for health coverage.
Cost-Sharing Reductions (CSRs) are another type of subsidy to help eligible individuals and families further reduce their out-of-pocket costs for care. CSRs are only available to eligible consumers who enroll in a Silver Plan.
Can Self-Employed Individuals Deduct The Cost For Health Insurance?
Health insurance for freelancers and other self-employed individuals may be tax deductible for those who are eligible. With the exception of catastrophic health coverage, a Premium Tax Credit (PTC) can be applied to all individual and family ACA metal level plans and can help reduce the monthly premium, either reconciled during tax filing or in advance, and paid directly to the health plan insurer.
How To Enroll In Health Insurance For Independent Contractors, Freelancers, And Other Self-Employed Workers
If you're interested in purchasing an ACA Marketplace plan, start by researching individual and family plans to pick the best option for your care needs and budget. You can then sign-up during the annual Open Enrollment Period (OEP), which typically lasts from November 1 to January 15 in most states.
If you experience a qualifying life event outside of Open Enrollment, you may qualify for a Special Enrollment Period (SEP). Getting married, having a child, or losing your insurance coverage are examples of life events that typically qualify you for special enrollment outside of Open Enrollment.