Being your own boss doesn’t mean you have to sacrifice healthcare. Freelancers and independent contractors now have more affordable health insurance options than ever. Let’s break down your best options and how to save with tax benefits and subsidies.
Best Options for Freelancers
Freelancers and self-employed professionals have more insurance choices than ever before, including ACA marketplace plans, private insurers, and professional associations. ACA plans offer income-based subsidies that can significantly reduce your monthly premium, especially if you estimate your income carefully. Private plans might be more flexible but come with higher costs and limited benefits. Some associations offer group health insurance for members, which can provide lower premiums than individual options. A High-Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA) is also popular among self-employed workers due to its tax advantages. It’s important to compare multiple providers and consider your healthcare usage when choosing a plan. Coverage, cost, and flexibility all matter—especially when you’re managing your own business and can’t afford major disruptions.
How to Lower Your Premiums
One of the most effective ways to lower your health insurance premiums as a self-employed individual is to estimate your income accurately when applying through the ACA marketplace. The lower your projected income (within limits), the more likely you are to qualify for premium tax credits. Additionally, you can deduct your monthly health insurance premiums when filing taxes, reducing your taxable income and overall tax liability. Consider enrolling in a High-Deductible Health Plan (HDHP) to reduce monthly payments, and contribute to a Health Savings Account (HSA) to save pre-tax dollars for future medical expenses. Also, shop around annually—plans and pricing change every year, so a better option may be available during open enrollment.