Health insurance is one of the biggest monthly expenses for self-employed professionals and business owners. But what if you could get great coverage without paying top dollar? Whether youâre running a small business or working solo, here are smart strategies to dramatically lower your health insurance costs â sometimes even to zero.
đ¸ 1. Leverage the ACA Marketplace for Subsidies
If you purchase health insurance through Healthcare.gov or your stateâs health exchange, you may qualify for premium tax credits (subsidies) that reduce or eliminate your monthly premium.
Pro tip: If your income is under 150% of the federal poverty level (around $21,870 for an individual in 2025), you could qualify for a $0 premium plan with low deductibles.
Even if you earn more, you can still get significant savings â especially if youâre self-employed and have control over how you structure your income.
đ˘ 2. Check for Medicaid or State-Level Programs
Many states, including New Jersey, have expanded Medicaid through programs like NJ FamilyCare. These offer free or low-cost coverage based on income.
Donât assume you wonât qualify just because you own a business. Medicaid eligibility is based on household income, not assets.
đ 3. Consider a High-Deductible Plan + HSA
If youâre healthy and want to keep monthly premiums low, a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA) is a powerful combo.
- Lower premiums
- Tax-deductible contributions
- Tax-free withdrawals for medical expenses
- Funds roll over and grow every year
You can also deduct HSA contributions as a business expense if youâre self-employed.
⨠4. Explore Health Sharing Ministries (Alternative Option)
Health sharing plans like Medi-Share or Sedera arenât technically insurance, but they can help cover costs at a fraction of the price.
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Monthly contributions are lower
â These plans may not cover pre-existing conditions and arenât ACA-compliant
These are best for people who:
- Rarely go to the doctor
- Want a backup for major events
- Understand the risks involved
đ 5. Maximize Business Tax Deductions
If youâre self-employed, you can usually deduct 100% of your health insurance premiums from your federal taxes.
You may also be able to:
- Write off HSA contributions
- Set up a QSEHRA or ICHRA in the future to reimburse yourself or family
Ask your bookkeeper or tax advisor (hint: like MackBooks đ) how to structure these deductions properly.
đ§ Final Thought: You Have Options
Donât assume youâre stuck paying $400, $800, or $1,200/month just because youâre self-employed.
With the right strategy, itâs possible to find coverage that fits your budget and your life. Sometimes, that means adjusting your income level. Other times, itâs about choosing the right structure or timing your application.
Either way, you donât have to overpay for peace of mind.
Need help structuring your income or benefits for tax savings?
MackBooks can help you think strategically, not just financially.
