Why it's different when you work for yourself
Without an employer plan, you choose and pay for your own coverage. That gives you more control, but it also means your income, your plan and your taxes are connected. The right plan for a 1099 worker depends on how steady your income is and how often you use care.
Estimating income that changes
Marketplace savings are based on the household income you expect for the year. For self-employed people, that usually means your net self-employment income after business expenses. If you earn more or less than expected, report the change. Savings are reconciled on your tax return, so an estimate that is far off can mean paying some back or getting a larger refund.
Tax considerations
Self-employed people may be able to deduct health insurance premiums for themselves and their family when they are not eligible for an employer plan. Some high-deductible plans also qualify you to open a Health Savings Account, which can be used for medical costs with tax advantages. Davis is not a tax advisor, so check the details with your tax professional.
Choosing the right plan type
- Rarely see a doctor? A lower-premium plan with a higher deductible, possibly paired with an HSA.
- Regular visits or prescriptions? A plan with a lower deductible and predictable copays.
- Have doctors you won't give up? Start with the network, then compare cost.
Own a business with employees?
If you have a team, there are also ways to offer them coverage. See health insurance for small businesses.
Common questions
Can I get a Marketplace plan if my income varies a lot?
Yes. Enroll with your best estimate for the year, then update it if your income changes so your savings stay accurate.
Is my spouse's employer plan a better option?
Sometimes. Davis can compare the cost of joining your spouse's plan with buying your own.
When can self-employed people enroll?
During Open Enrollment, or within a Special Enrollment Period after a qualifying life event such as losing other coverage.
