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How do I get health insurance if I am self-employed?

The short answer

If your business has no employees besides you and your spouse, you cannot buy a group plan, so you buy an individual plan on the Marketplace or directly from an insurer. You can enroll during open enrollment or after a qualifying life event. Many self-employed people can deduct the premiums on their federal tax return.

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Can I get group health insurance if I am self-employed?

Generally no. Businesses with no employees other than the owners or their spouses are not eligible for SHOP plans. To qualify for SHOP you generally need 1 to 50 employees, with at least one who is not an owner or an owner's spouse.

A CHOICE arrangement (ICHRA) and a QSEHRA are for employees only. CHOICE arrangements are not for self-employed individuals, and the tax code does not allow a tax favored arrangement for independent contractors.

If you hire your first employee, you may qualify for group coverage and the other employer options. Our small business guide explains how.

Where can I buy an individual health plan?

On the Health Insurance Marketplace (HealthCare.gov or your state's marketplace), or directly from an insurer or through an agent. Every Marketplace plan covers the ten essential health benefits and cannot exclude treatment because of a preexisting condition. Savings such as the premium tax credit apply to Marketplace plans.

When you apply for Marketplace coverage you give your best estimate of your household income for the year you want coverage, and that estimate affects your savings. Self-employed income varies. Our income estimate guide and private worksheet explain where to start; talk to a tax professional about deductions.

When can I enroll in an individual plan?

Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027 in most states. Pick a plan by December 15 for coverage that starts January 1. Outside open enrollment you need a qualifying life event, such as marriage, a new baby or dependent, a move or losing health coverage.

Key dates for self-employed owners buying for 2027
DateWhat it means
November 1, 2026Open enrollment begins in most states.
December 15, 2026Last day to pick a plan if you want coverage to start January 1, 2027.
January 15, 2027Open enrollment ends in most states.

A qualifying life event opens a special enrollment period, usually 60 days long. Some state run marketplaces use different dates, so check your state page.

Can I deduct my health insurance premiums as a self-employed person?

Often yes. The self-employed health insurance deduction lets you deduct premiums for medical, dental, vision and qualified long term care insurance for you, your spouse and your dependents, and for a child under 27 at the end of the year. You report it on Schedule 1 (Form 1040), line 17, using Form 7206 or the worksheet in the Form 1040 instructions.

  • You must have a net profit from the business, or be a partner with net earnings from self-employment, or be a more than 2% S corporation shareholder who received wages from the S corporation.
  • The plan must be established under your business. For a sole proprietor, the policy can be in the business's name or in your own.
  • You cannot deduct premiums for any month you were eligible to join a health plan subsidized by your employer or your spouse's employer, even if you did not join.
  • Medicare premiums you pay voluntarily for insurance in your name can count toward the deduction.

The deduction is limited by your net earnings from the business that sponsors the plan. It does not reduce your self-employment tax.

If you get Marketplace savings and also take the deduction, IRS Publication 974 explains how to figure both. A tax professional can confirm how the rules apply to your return.

How does the deduction work for S corporation owners and partners?

Partners and owners of more than 2% of an S corporation have to route premiums through the business. The business pays or reimburses the premiums and reports them as guaranteed payments or W-2 wages, and the owner then claims the deduction.

For a partner, the policy can be in the partnership's name or the partner's name. If the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts as guaranteed payments.

For a more than 2% S corporation shareholder, the policy can be in the S corporation's name or yours. Premiums the S corporation pays or reimburses are included in your W-2 wages. Ask your tax professional to set this up before you buy.

What changes when I hire my first employee?

With one employee who is not an owner or an owner's spouse, you may qualify for small group coverage through SHOP and for a CHOICE arrangement, and a QSEHRA if you have fewer than 50 full time employees and no group plan. You could also qualify for the Small Business Health Care Tax Credit if you buy through SHOP.

Our guides on getting health insurance for a small business and on the tax credit explain the next steps. A licensed agent can quote a group plan and an individual plan for you and your employee.

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2027 health insurance subsidy calculator

Enter your state, household size and income to see your 2027 expected premium, your savings and whether Medicaid may apply.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

Get group plan prices for your team

A licensed agent compares small group plans and CHOICE arrangements from several carriers and shows you the monthly cost for you and your employees. It costs you nothing.

Common questions

Can a sole proprietor get group health insurance?

Not if the business has no employees other than the owner and the owner's spouse. SHOP requires at least one employee who is not an owner or an owner's spouse. A sole proprietor buys an individual plan instead.

When can a self-employed person enroll in health insurance?

During open enrollment, which runs November 1 to January 15 in most states, or during a special enrollment period after a qualifying life event such as a move, marriage, new baby or loss of coverage.

Can I deduct health insurance premiums if I am self-employed?

Often yes. You need a net profit from the business, or be a partner or a more than 2% S corporation shareholder, and the plan must be established under your business. You report the deduction on Schedule 1, line 17, using Form 7206 or the Form 1040 worksheet.

Can I take the deduction if my spouse's job offers insurance?

No deduction is allowed for any month you were eligible to join a subsidized health plan through your employer or your spouse's employer, even if you did not enroll.

Do I get a Marketplace premium tax credit if I am self-employed?

Possibly. Savings depend on your estimated household income for the coverage year, which for self-employed people is usually your expected net profit. IRS Publication 974 explains how the credit and the deduction work together.

Does the self-employed health insurance deduction lower self-employment tax?

No. The IRS says you cannot subtract the deduction when figuring net earnings for self-employment tax.

Sources

Rules and limits change each year. Confirm figures with the IRS, your state insurance department or a licensed agent, and ask a tax professional about your own return, before you decide.

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