If you’re self-employed, a freelancer, a contractor, or a gig worker, you know the pain of figuring out your own health insurance. You don’t have an HR department to hand you a packet — you’re navigating 2027 Open Enrollment entirely on your own. Here’s what you need to know to make the right call.
Your Main Options as a Self-Employed Person
When you’re your own boss, you have several avenues for health coverage in 2027:
- ACA Marketplace plans – Usually the best option, especially if you qualify for premium tax credits
- A spouse’s employer plan – If your spouse has employer coverage, compare that cost against marketplace options
- Association health plans – Some professional associations offer group coverage to members
- Short-term health plans – Limited coverage, not ACA-compliant; generally not recommended as primary coverage
For most self-employed individuals, an ACA marketplace plan during Open Enrollment (November 1 – January 15, 2027) will be the right choice — especially once you factor in subsidies.
The Self-Employed Subsidy Advantage
Your net self-employment income is what the marketplace uses to calculate your premium tax credit — after business deductions. This means your subsidy eligibility is based on what you actually keep, not your gross revenue. If your net income is in the right range, you could qualify for significant monthly savings.
Important: your income will likely fluctuate year to year. Report a careful estimate of your 2027 net income when enrolling. If you underestimate significantly, you may owe money back at tax time; if you overestimate, you’ll get a larger refund.
The Self-Employed Health Insurance Deduction
Sole proprietors and single-member LLC owners can deduct 100% of their health insurance premiums paid — including any marketplace premiums — directly from gross income on their federal tax return. This deduction applies even if you don’t itemize. Combined with a premium tax credit, the real cost of your health insurance can be substantially lower than the headline numbers suggest.
Note: you can’t claim both the self-employed health insurance deduction and the premium tax credit on the same dollar of premium. Work with a tax professional on this math.
Choosing the Right Metal Tier
For self-employed individuals with variable income, the choice between metal tiers often comes down to your expected healthcare use:
- Bronze/HDHP: Low premium, paired with an HSA. Good if you’re healthy and want to save pre-tax. HSA contributions are also deductible.
- Silver with CSR: If your income qualifies for cost-sharing reductions, a Silver plan offers excellent value — lower deductibles and copays than its premium suggests.
- Gold: Higher premium but more predictable costs. Good if you have regular healthcare needs and want to budget accurately.
Special Enrollment for Life Events
If you gain or lose a client contract that significantly changes your income, or if your household size changes, you may qualify for a Special Enrollment Period outside of Open Enrollment. Income changes mid-year can also let you update your premium tax credit.
Self-employed and not sure which plan makes the most sense for your 2027 income? Contact Paul at Garden State Benefits for a no-cost, no-obligation review of your 2027 options — he’s a licensed independent broker serving individuals and families across 26 states.