Overview

Are you considering health insurance for your self-employed venture? Here’s what you need to know.

While federal law does not require you to purchase health insurance, some states do, and you may face a state tax penalty if you do not comply. However, there are ways to make health insurance affordable.

Enrollment

You can explore options on the Health Insurance Marketplace or through the Small Business Health Options Program (SHOP). Additionally, you may qualify for subsidies to reduce your monthly premiums.

If you are self-employed and married, you might be able to join your spouse or partner’s health plan. If that’s not an option, you’ll need to look into getting individual coverage. Health insurance serves as a financial safety net in case of medical emergencies.

Health Insurance Plan Costs to Consider

The cost of health insurance depends on several factors, including your location, income, and the type of coverage you choose. If you are offering coverage to employees, that will also impact the cost.

Plan Options

For affordable coverage, the Health Insurance Marketplace is a good starting point. Prices vary by insurance company, so it’s important to compare.

Options include individual plans, state programs based on income, and small group plans for your business.

Self-Employed Health Insurance Deduction

You may be eligible for the Self-Employed Health Insurance Deduction, allowing you to deduct your premiums and save on taxes if you maintain health insurance throughout the year.

If health insurance costs seem overwhelming, consider premium tax credits or public options like Medicaid. As a small business owner, you might also get discounts through professional groups.

Next Steps

Take your time to research and find the right coverage for you. Your health and your business will benefit from the protection that health insurance provides.

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