Health insurance for the self employed

Buying health insurance when you're self-employed

You can buy health insurance through the ACA Marketplace even if you have a pre-existing condition. Insurers cannot deny you coverage or charge you more because of your medical history. The ACA marketplace is available either through the federal health insurance exchange website or, in some states, a state marketplace.

You can shop and compare plans to find the best combination of coverage and price. ACA plans come in four tiers:

Bronze, with the lowest monthly premiums and higher deductibles and co-pays
Silver, with higher premiums and lower out-of-pocket costs
Gold, which has higher premiums but very low deductibles and co-pays
Platinum, the most expensive plan option, which has low or no out-of-pocket costs

You can also, if you qualify, buy a catastrophic plan. This type of plan has very low monthly premiums but a high deductible, and is meant for those who don't anticipate much need for medical care or who are facing financial hardship.

If you can't find a plan that suits you on the ACA marketplace, other private health insurance options are available. Be sure to consider not only the costs, but the type of network access you want.

How much is ACA health insurance for self-employed people?

The average cost of an ACA health insurance plan ranges from $496 a month for the lowest-cost Bronze plan to $615 a month for the lowest-cost Gold plan, based on a 40-year-old single person, according to 2026 KFF data. Health insurance rates differ by age and location. Non-ACA private health insurance rates vary widely.

Plan	Average monthly cost
Bronze (lowest cost)	$456
Silver (lowest cost)	$611
Gold (lowest cost)	$615

Disability insurance options for self-employed people

Disability insurance is another important form of protection for self-employed people. This type of coverage replaces a percentage of your income if you become ill or are injured in an accident that prevents you from working.

According to the Insurance Information Institute (Triple-I), 43% of people who are 40 years old will experience a disability lasting 90 days or longer before age 65.

Like health insurance, most people purchase group disability insurance through their employer. That's not an option if you're self-employed, but you can buy a policy directly from an insurance company or financial planner. These policies will generally replace 50% to 70% of your income if you can no longer work.

Before choosing a policy, review these features:

Monthly benefit: The amount you receive while you qualify for benefits.
Waiting period: How long you must wait after a disability begins before benefits start.
Benefit period: How long the policy pays benefits.
Definition of disability: The conditions you must meet to receive benefits. Some policies cover you if you cannot perform your job, while others require you to be unable to work in a suitable occupation.
Premium: The amount you pay for coverage.

Source:

KFF. "Average monthly marketplace premiums by metal tier." Accessed October 2026.

FAQ: Health insurance for the self-employed

Is health insurance tax-deductible for self-employed people?

Yes. If you qualify, you can deduct health insurance premiums for yourself, your spouse, and your dependents on your federal income tax return. The deduction has eligibility rules and does not apply to months when you qualify for an employer-subsidized health plan.

Does self-employment income affect health insurance costs?

Yes. Your household income affects your eligibility for Marketplace premium tax credits. A change in your income might increase or decrease the financial assistance you receive.

What happens to my health insurance if my business closes?

Closing your business does not automatically end your individual health insurance policy. If you lose your existing coverage, you might qualify for a Special Enrollment Period to choose another Marketplace plan.

Is health insurance mandatory for self-employed people?

There is no federal tax penalty for going without health insurance. However, some states and the District of Columbia have individual health insurance mandates that impose penalties on eligible residents who lack coverage.