Affordable, tax-deductible health coverage for freelancers, contractors, and small business owners. You may qualify for significant subsidies.
Last updated: January 2026 | Written by licensed CT insurance professionals
Coverage Options for Self-Employed
ACA Marketplace Plans
Short-Term Health Plans
Frequently Asked Questions
Find the Right Coverage for Your Business
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Tax Deductible
Self-employed individuals can deduct 100% of health insurance premiums from taxable income.
Subsidy Eligible
You may qualify for premium tax credits based on your projected business income.
Comprehensive Coverage
Access the same essential health benefits as employer-sponsored plans.
Flexible Options
Choose from multiple carriers and plan types to match your needs and budget.
Expert Answers
How do self-employed individuals deduct health insurance premiums?
Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents as an ‘above-the-line’ deduction on Form 1040. This reduces your Adjusted Gross Income (AGI), which can lower your tax liability and potentially increase your eligibility for other deductions. The deduction is available regardless of whether you itemize deductions, but you cannot deduct more than your net self-employment income.
Can self-employed people get ACA subsidies?
Yes, self-employed individuals can qualify for ACA premium tax credits based on their projected Modified Adjusted Gross Income (MAGI). Because self-employed income can vary, you estimate your annual income when enrolling through Access Health CT. If your actual income differs from your estimate, you’ll reconcile the difference on your federal tax return—potentially receiving additional credits or repaying some of the advance credits received.
What health insurance options do freelancers have in Connecticut?
Connecticut freelancers and self-employed individuals have several health insurance options: 1) ACA marketplace plans through Access Health CT with potential subsidies, 2) Short-term health plans for temporary coverage (though these may exclude pre-existing conditions), 3) Health sharing ministries (not insurance but may reduce costs), 4) COBRA continuation if recently employed (for up to 18 months), 5) Spouse’s employer plan if available. Most self-employed individuals find the best value through the ACA marketplace due to subsidy availability.
Can I deduct health insurance premiums as a self-employed person?
Yes! Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents. This is an ‘above-the-line’ deduction that reduces your adjusted gross income.
Do I qualify for ACA subsidies if I’m self-employed?
Potentially yes. Subsidies are based on your projected Modified Adjusted Gross Income. As a self-employed person, you can estimate your income for the year to determine eligibility.
What if my income varies month to month?
You’ll estimate your annual income when enrolling. If your actual income differs, you’ll reconcile on your tax return. We recommend reviewing and updating your income estimate throughout the year.
Can I cover my family on a self-employed health plan?
Yes, you can include your spouse and dependents on your plan. Family coverage through the marketplace may qualify for subsidies based on household income.