If you’re self-employed or work as a contract worker or gig worker, finding the right health insurance is important. But since you don’t have plans available through an employer, it can be confusing to know where to start.
We can help. With high-value, low-cost plans and a variety of strong network options, we have the perfect plan for your needs, whether you’re shopping for yourself or for your family too. Let’s get started.
Generally, if you earn taxable income and have neither an employer nor employees, you’re considered self-employed. That often includes:
- Freelance workers
- Contract workers
- Consultants
- Entrepreneurs
- LLC business owners
- Gig workers
- Online content creators
- Influencers
Even if you work for yourself, it’s important to note that health insurance plans for self-employed people can cover more people than just you. They can also cover spouses, dependents and children who are 26 and under, all on the same plan.
There are many health insurance options to consider when you’re self-employed. One option is to purchase health insurance directly from a health insurance company or through a broker. With this type of plan, you can enjoy the simplicity of direct enrollment with an insurance carrier rather than the additional administrative work that can come with having your plan managed through the exchange.
Another option is to purchase a plan through your state’s marketplace (exchange), like MNSure in Minnesota or HealthCare.gov in Wisconsin. When you buy a plan through the marketplace, you might qualify to receive financial help for your costs in the form of subsidies, like premium tax credits and cost-sharing reductions.
When looking for a health insurance plan, your premium (what you pay each month) is likely top of mind. But there are other factors to consider too, like plan levels, when you can enroll and more.
The plans you can choose from will likely have three levels, based on monthly premium costs and how often you use your plan. These levels, or tiers, are often called gold, silver and bronze. Plus, if you’re enrolled in a qualifying high-deductible health plan (HDHP), you may be able to contribute to a health savings account (HSA).
- Gold plans: A gold plan might work for you if you have health conditions that need ongoing management and you expect to visit the doctor frequently. Monthly premiums tend to be higher, but you’ll pay less when you need care.
- Silver plans: A silver plan may be best for you if you want more than basic coverage and you expect to visit your doctor a couple times a year. With this type of plan, you’ll pay moderate monthly premiums and a moderate amount for care.
- Bronze plans: This type of plan tends to have the lowest monthly premiums, but you’ll pay more when you need care. If you don’t expect to go to the doctor often, it may be the right plan for you.
- Health savings accounts (HSAs): An HSA isn’t a health plan but rather a type of savings account used specifically for certain medical expenses, like doctor visits, eyeglasses and more. You choose how much money to contribute, and the money stays in your account and grows tax-free until you need it. You can claim an income tax deduction on the money you contribute to an HSA, and the money is also tax-free when you use it for eligible out-of-pocket medical expenses. All bronze plans and many silver plans are HSA-eligible.
When enrolling in an individual or family health plan, you typically can only enroll during the annual Open Enrollment Period (OEP). OEP begins annually on November 1. For 2027 plans, OEP ends on January 15, 2027, in Minnesota and Wisconsin.
However, if you have a Qualifying Life Event (QLE), you typically can enroll within 60 days from the date of the event as part of a Special Enrollment Period (SEP). QLEs include loss of other health insurance coverage, changes in residence, and changes in your household like marriage or divorce. Other circumstances, such as becoming a U.S. citizen and becoming a member of a federally recognized tribe, are included as well.
When you work for yourself, you may be able to deduct 100% of your health insurance premiums to reduce your taxable income. You qualify if:
- You or your spouse aren’t eligible to enroll in an employer-sponsored plan, and
- Your business shows a net profit
However, you can’t deduct more than you’ve earned. For example, if you spent $6,000 on health insurance premiums but your net self-employment income was $5,000, you can only deduct $5,000. Additionally, you can’t combine income from separate business ventures. The insurance deduction has to be from one business venture only.
When you’re self-employed, you’re busy. You need health insurance that’s easy to use and easy on your budget. HealthPartners plans are designed with self-employed people in mind:
- A variety of comprehensive, affordable plans with useful coverage and benefits, like health savings account (HSA) options, 100% coverage for preventive care and prescription insulin that’s capped at $25 per month
- Strong networks of all sizes, giving you plenty of choices to take care of your health needs, whether you see doctors at major care systems or local independent practices
- All from a reliable company in the Upper Midwest with over 65 years of health insurance experience plus an award-winning Member Services team
At the federal level, prior to 2019, the Affordable Care Act (ACA) imposed a tax penalty if you didn’t have health insurance for two consecutive months. In 2019, the Tax Cuts and Jobs Act took effect and removed the tax penalty. That means having health insurance is still technically required, but you no longer have to pay a tax penalty if you don’t have it.
At the state level, California, Massachusetts, New Jersey, Rhode Island, Vermont and Washington, D.C., have separate requirements for people to have health insurance. If you’re a resident of one of these states and don’t have health insurance, you’ll have to pay a tax penalty.
So in Minnesota and Wisconsin, whether you have health insurance is up to you. But keep in mind that health care costs and your own individual health needs can be hard to predict. A HealthPartners health insurance plan can offer greater peace of mind through 100% coverage for preventive care, access to high-quality care systems when you need them, coverage for prescription drugs, extra perks and benefits, and much more. Because when you protect your own health, you protect the health of your business, too.
Yes, there are both health insurance tax credits and tax deductions, and it’s possible to qualify for both.
ACA Premium Tax Credits help lower your monthly premium for plans purchased on the marketplace. You can get the credits in advance and apply them directly to your premiums or claim them when you file your taxes. You’re eligible if:
- You purchase an on-exchange plan, and
- Your business claims a net profit, and
- You have no other health insurance coverage, and
- You, your spouse and your dependents aren’t eligible for an employee-sponsored health plan, and
- Your household income falls within certain limits
The Self-Employed Health Insurance Deduction allows you to deduct 100% of your medical, dental and other qualified health insurance premiums on your tax return. It’s available whether you purchase an on-exchange or off-exchange plan. But there are certain restrictions:
- You can’t deduct more than your annual net profit, and
- You and your spouse cannot be eligible for an employee-sponsored health plan
Yes. Just like any other individual and family health insurance plan, your insurance plan can cover eligible family members. You’ll be the primary policyholder, but you can add your legally married spouse, dependent children up to age 26 and other qualifying dependents you claim on your tax return.
Generally, small businesses (50 or fewer employees) aren’t required to offer health insurance to employees. So you can keep your individual or family plan if you choose to.
However, setting up a small business health insurance plan can have its advantages. By offering a richer benefits package, you may have a greater ability to attract and retain top talent. Your company may also qualify for other kinds of health insurance deductions.
The information on this webpage is for informational purposes only and should not be considered tax advice. For questions regarding your specific tax situation, consult a tax professional.
Claims payment policies and other information (PDF)
Statement of nondiscrimination for health plan members (PDF)