Health coverage when you're self-employed

Are you self-employed or a small employer?

If you run a business that brings in income and has no employees, you're considered self-employed. That covers freelancers, consultants, independent contractors, and other solo workers. Hiring independent contractors doesn't make you an employer.

If your business has at least one employee besides you, your spouse, family members, or co-owners, you may be able to use the SHOP (Small Business Health Options Program) Marketplace to offer coverage to yourself and your team instead. Employees are generally the workers you report on a W-2.

Your options through the Marketplace

When you apply, you'll find out whether you qualify for a premium tax credit and other savings based on your income and household size. You'll also find out whether you qualify for Medicaid or CHIP (the Children's Health Insurance Program) in your state.

Plans come in several categories, from low monthly premiums that mainly protect you in a worst case, to higher premiums with lower costs when you get care.

Estimating an income that won't sit still

The Marketplace asks for your estimated net self-employment income for the year you want coverage. When your income changes month to month, that can be hard to pin down. Make your best estimate, then update it as the year goes on. HealthCare.gov has a guide to estimating self-employment income, linked below.

When your situation changes

• Leaving a job to work for yourself: losing job-based coverage for any reason qualifies you for a Special Enrollment Period, so you can enroll outside Open Enrollment.
• Getting a job that offers coverage: you can cancel your Marketplace plan any time. Once you have an offer of job-based coverage, in most cases you'll no longer qualify for Marketplace savings, whether you take the offer or not.
• Your spouse has job-based coverage that includes spouses: in most cases you won't qualify for Marketplace savings. If their plan doesn't cover spouses and dependents, you can buy a Marketplace plan and may qualify for savings.
• Married? In most cases you need to file a joint federal tax return to qualify for Marketplace savings.