Health Insurance as a 1099/Small Business Owner by Justin Kenion

You did it. You took the leap into the unknown and opened your own business or began as an independent contractor. Congratulations! Now what does that mean for your insurance situation? You may have a spouse with an employer option, but those often only cover a portion of the employee themselves. To add one’s spouse or children, it can be substantially more expensive. With that being said, where should you start your search? 

The ACA Marketplace, known for HMO plans that cover the 10 Essential Public Health Services could be a good option if you qualify for subsidies. Those subsidies are based on estimated annual household income, but with the way your earnings could fluctuate, those tax-credits may result in chargebacks from the IRS. Private options could be better if you are able to qualify for them, as they are typically medically underwritten. Because of this, they tend to be more competitive in pricing without sacrificing quality of coverage. A crucial detail is that these plans more often than not do not cover: mental health treatment such as counseling or therapy, substance abuse treatment, and maternity. While those are not included in many plans, if the frequency of counseling or therapy is around once or twice a month, it could still work out to be cheaper than being on an unsubsidized ACA plan.

It is important to note, As a 1099 filer, you are able to write off your medical, dental, and vision insurance! While this doesn’t exactly match the savings of having a large employer option, it does help lighten the load!