Let’s say you decide to leave your full-time job with benefits and become your own boss. Besides finding the right desk and office chair, you’ll need to start looking for a new health insurance plan.

When you work for a company, your employer usually chooses the health insurance plan options. The company may pay some or all of the monthly premium, which is the cost for your health insurance plan. There may even be a human resources department to answer your questions or offer guidance.

It’s different when you’re self-employed.

“The responsibility for the self-employed individual is that they have to be their own HR manager; they have to figure out what they can afford,” says Jeff Baechle, vice president of Carrier Relations at HealthMarkets Insurance Agency.

That doesn’t mean you have to navigate your health insurance options alone. Licensed insurance agents and brokers¹ can explain the different types of health plans and help you find one that fits your needs. There’s no fee for their services so it can be worth it to call and ask questions.

Whether you go with a licensed insurance agent or broker or shop on your own, here are some things to consider when choosing a health insurance plan if you’re self-employed.

How long will you need self-employed health insurance coverage?

If you only need temporary healthcare coverage, a short term health insurance plan might work for you.

Common reasons people choose short term health insurance include:

• You only need coverage until you’re eligible for health insurance through a new job.
• You’re close to being eligible for Medicare (age 65).
• You missed the Open Enrollment Period to enroll in a health insurance plan through the Affordable Care Act (ACA) Health Insurance Marketplace.
• You want temporary coverage to give you more time to decide on a longer-term solution.

You can apply for short term health insurance at any time and coverage usually begins quickly. These plans can provide up to 12 months of coverage (less one day), depending on the state where you live.

Short term health insurance isn’t comprehensive healthcare coverage and does not cover preexisting conditions. But it can be one way to fill a gap between major medical policies for a limited period of time until you can choose a longer-term health coverage plan.

Need temporary healthcare coverage? A short term health insurance plan might be a fit for you.

If you plan to stay self-employed for the long term and aren’t close to Medicare eligibility, Affordable Care Act (ACA) health insurance plans offer comprehensive healthcare coverage.

All ACA medical plans must offer essential health benefits, such as emergency and preventive care.² They also can’t deny you coverage or charge a higher premium if you have a preexisting condition such as cancer or diabetes.³

You can enroll in an ACA plan during the annual Open Enrollment Period (or during a Special Enrollment Period) in several ways:

• On Healthcare.gov: This is the federal government’s website for buying health insurance. It’s also known as the Health Insurance Marketplace. If you qualify for a premium tax credit⁴ (a financial tool that helps lower your monthly health insurance premium payment), you can sign up for it here.
• Through your state’s version of the Marketplace (sometimes referred to as an exchange). If your state has its own Marketplace, you may qualify for additional savings or subsidies when you enroll through your state.⁵

You can also buy ACA health insurance plans through a licensed agent or broker. If you’re eligible for federal or state subsidies, agents and brokers can help you sign up for them.

Short term health insurance vs. ACA plans: Which coverage fits your needs?

Short term health insurance is designed to provide temporary coverage.

Short term health plans typically:

• Have lower monthly premium payments than ACA health insurance plans
• Do not cover preexisting conditions
• May set a maximum benefit amount (a limit on the services you can get as part of your plan)
• Require you to answer medical questions to apply, a process known as medical underwriting

Short term health insurance does not meet all federal requirements to qualify as “minimum essential coverage” and the plans do not include all the essential health benefits.

Short term health insurance might be a fit for you if you:

• Only need less than a year of insurance to fill a gap between major medical policies for a limited period of time until the ACA Open Enrollment Period or until you’re eligible for Medicare or insurance from a new job
• Don’t regularly take prescription medications
• Are generally healthy and don’t have a chronic medical condition

In contrast, ACA health insurance plans:^2,3

• Cover 10 essential health benefits, including preventative care and emergency services
• Cannot deny you coverage due to a preexisting condition
• Include prescription drug coverage
• Don’t require medical underwriting

An ACA health insurance plan may be a fit for you if:

• You or a family member are managing a chronic health condition
• You seek medical care frequently
• You want coverage for preventive visits and emergency care

Another option is an extended short term health insurance plan. Extended short term health insurance is a type of short term insurance that can last nearly three years, though options vary by state.

Some extended short term health insurance plans offer coverage if you go to the hospital and need surgery. Others include coverage for doctor’s office visits and preventive care.

However, as a type of short term health insurance, extended short term health plans can deny you coverage for preexisting conditions and can set benefit maximums. So it’s important to check any plan you’re interested in for its exclusions and limitations before you apply.

Need temporary insurance that lasts longer than a year? Learn more about extended short term health insurance.

Is your doctor in network with your self-employed health insurance plan?

Health insurance plans have a network that is made up of doctors and other healthcare providers that have a contract with the health insurance company.

Some plans have large nationwide networks. Others limit the network to a certain geographic area or healthcare system.

If you travel frequently or have business in different states, consider plans with a nationwide network.

If it’s important that you keep your doctor, double-check that your doctor is in network for the plan you’re considering. An in-network doctor accepts your health insurance plan. You can call the health insurance company to confirm or check the website.

If you see a doctor or physician who’s outside your network, you may have to pay more or even full price for medical services, depending on your plan.

What are the costs and tax deductions for self-employed health insurance?

Your budget is an important factor in choosing a health insurance plan.

And one aspect of being self-employed is that your health insurance premiums are 100% tax deductible.⁶ Check with your tax professional to see if you’re eligible.

If you purchase an ACA health insurance plan through the Health Insurance Marketplace, you might qualify for a premium tax credit, which lowers your monthly payment.⁴

You may also qualify for what’s known as a cost-sharing reduction, which helps reduce your out-of-pocket expenses.⁷ These could include your deductible, which is the amount you must pay before your insurance starts to pay for covered services. These could also include copayments or coinsurance — payments made every time you receive health services.

Even if your household income is too high to qualify for a premium tax credit, you can still purchase an ACA plan during the annual Open Enrollment Period. (If you missed Open Enrollment, it’s worth checking to see if you qualify for a Special Enrollment Period.)

Short term health plans may have lower monthly premiums, but it’s important to note that they don’t qualify for tax credits.

Bottom line: Whatever your situation, taking time to compare your options can help you find a health plan that fits both your needs and your budget.

Frequently asked questions

Is health insurance tax deductible if you’re self-employed?

Yes. You can usually deduct 100% of your premiums for yourself and your family, which lowers your adjusted gross income on your taxes.⁶

Can I get health insurance coverage with a preexisting condition?

ACA plans must cover you regardless of health history. Short term health insurance plans can deny coverage or exclude preexisting conditions.³

How do I check if my doctor is in-network?

Use the “Find a Provider” tool on the insurer’s website or call your doctor’s office with the specific plan name.

Can I enroll if I just quit my job?

Yes. Losing job-based healthcare coverage is a Qualifying Life Event, triggering a 60-day Special Enrollment Period to buy a new health insurance plan.^8,9

Have questions about health insurance plans? Call 1-844-211-7730 to speak with a licensed insurance agent or explore options online.

Meet the expert

Jeff Baechle is vice president of Carrier Relations at HealthMarkets Insurance Agency.

For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.

Sources

1. Healthcare.gov. “Agent and broker (health insurance).” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/glossary/agent/
2. Healthcare.gov. “What Marketplace health insurance plans cover.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/coverage/what-marketplace-plans-cover/
3. Healthcare.gov. “Health benefits & coverage.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/coverage/pre-existing-conditions/
4. HealthCare.gov. “Premium Tax Credit.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/glossary/premium-tax-credit/
5. Healthcare.gov. “Health Insurance Marketplace®.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/glossary/health-insurance-marketplace-glossary/
6. Healthinsurance.org. “Self-employed health insurance deduction.” January 16, 2026. Retrieved from https://www.healthinsurance.org/self-employed-health-insurance/self-employed-health-insurance-deduction/
7. Healthcare.gov. “Saving money on health insurance.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/lower-costs/save-on-out-of-pocket-costs/
8. Healthcare.gov. “Qualifying Life Events.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/glossary/qualifying-life-event/
9. Healthcare.gov. “Special Enrollment Periods.” Accessed June 9, 2026. Retrieved from https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/

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52203-X-0525