Health Insurance for the Self-Employed: State Law Updates & Options

If you are self-employed and need health insurance, state laws allow you access to health insurance. But, there are special laws concerning health insurance for self-employed individuals. Laws vary according to how many employees you have, and there are even special laws in most states if you are self-employed with no employees.

With Employees

• You must have at least two employees, in most States, to qualify for group health insurance rates. Group health insurance is typically guaranteed issue or non-discrimination issue. This means that your insurer cannot turn you away due to health reasons. You must be allowed to purchase a group health insurance plan. Your employees can also enroll without being turned down for health reasons.

Without Employees

• You must purchase health insurance at individual rates in most cases. However, you will receive a tax deduction up to 100 percent of the premiums you pay. This means that your health insurance premiums can be treated like any other business tax deduction. While you do not get lower rates, it will lower your adjusted gross income.

Health Insurance Exchanges

• In 2014, health insurance exchanges allow you to purchase health insurance as a self-employed individual. These exchanges will be state-based exchanges with subsidies for individuals and families that fall between 133 and 400 percent of the Federal poverty level.