How do you handle health coverage if you’re self-employed?

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If you’re self-employed, you don’t have the luxury of relying on your employer to handle health insurance coverage for you. On the other hand, you have a great deal more flexibility and choice when it comes to picking your own plan. But if you want to get a plan on the Health Insurance Marketplace, there are a few things you need to keep in mind.

What does it mean to be self-employed?

For the purposes of the Marketplace, you’re considered self-employed if you’re “a freelancer, consultant, independent contractor or other worker who doesn’t have any employees.” If you have at least one other person working for your business (not including yourself, your spouse, family member, or the business owner) who could be classified as an employee, you should consider purchasing insurance on the SHOP Marketplace for small businesses.

Applying for insurance means estimating your income

As a self-employed person, if your income fluctuates from year to year, it can be difficult to estimate. However, you must give the Marketplace an approximate net income for the year you’re seeking coverage.

Coverage is still mandated

No matter what your job status is – self-employed, employee, et cetera – you’re still at risk for paying a penalty if you don’t have qualifying health insurance. If you’re unsure of which plan to choose, talk to your broker today.