When you own the business, you are also the benefits department. The good news: self-employed people and small business owners have more coverage paths than most realize — and several come with tax advantages.
Option 1: The ACA marketplace (for you and your family)
If you have no employees, an individual marketplace plan is usually the simplest route. You may qualify for a premium tax credit based on your household income, and self-employed people can often deduct their premiums. Because business income varies, estimate your annual income carefully — it drives your subsidy. See how the 2026 subsidy rules work.
Option 2: ICHRA (give yourself or your team an allowance)
An ICHRA lets a business reimburse employees (including owners in many structures) tax-free for individual coverage instead of buying a group plan. It is increasingly popular with small firms because costs are predictable and employees pick their own plan.
Option 3: A small-group plan
With a few employees, a traditional small-group plan may make sense — especially if you want to offer a strong benefit to attract talent. Group plans do not use individual subsidies, so compare the total cost against an ICHRA or everyone buying marketplace plans.
Do not forget the self-employed health insurance deduction
If you are self-employed and turn a profit, you may be able to deduct your health, dental, and qualified long-term care premiums — even without itemizing. This effectively lowers your net premium. Confirm the details with your tax professional, since eligibility depends on your business structure and income.
What about a health savings account?
Pairing an HSA-eligible high-deductible plan with an HSA can be powerful for owners: contributions are tax-deductible, growth is tax-free, and withdrawals for medical costs are tax-free. See HSA vs FSA and whether an HDHP fits you.
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Frequently Asked Questions
Can a small business owner get health insurance through the marketplace?
Yes. If you have no employees, you can buy an individual marketplace plan and may qualify for a premium tax credit based on your household income.
Can self-employed people deduct health insurance premiums?
Often yes. Self-employed people who show a profit may be able to deduct health, dental, and qualified long-term care premiums. Confirm the details with your tax professional.
What is an ICHRA?
An ICHRA lets a business reimburse employees tax-free for individual health coverage instead of buying a traditional group plan.
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