Handbook / Health coverage

Marketplace health insurance when you are self-employed

Leaving a job usually means leaving its health plan. For many self-employed people in the United States, the individual Health Insurance Marketplace is where coverage comes from next. The application treats self-employment income differently from a salary, and getting that part right affects both the price you pay during the year and what happens when you file taxes. This guide covers how the Marketplace sees a self-employed applicant, based on HealthCare.gov pages checked in November 2026, during Open Enrollment for 2027 coverage.

Are you self-employed in the Marketplace's eyes?

HealthCare.gov draws a simple line:

• If you run a business that produces income and has no employees, you are considered self-employed and can buy coverage through the individual Marketplace.
• You are not considered an employer just because you hire independent contractors. "Employees" are generally workers whose income you report on a W-2.
• If your business has even one employee other than yourself, a spouse, a family member or an owner, HealthCare.gov says you may be able to use the SHOP Marketplace for small businesses to offer coverage to yourself and your employees.

Most freelancers, consultants and sole proprietors fall into the first group.

The number that matters: estimated net income

HealthCare.gov says Marketplace savings are based on your estimated net income for the year you are getting coverage, not last year's income. On the application you report net self-employment income, which is sometimes called profit:

• If income is higher than business expenses, you report the net income.
• If expenses are higher, you report a net loss.

HealthCare.gov ties this to taxes directly: your net income from self-employment is what you report on Schedule C. So the same bookkeeping that feeds your tax return also feeds your health insurance application.

Estimating income that does not arrive evenly

HealthCare.gov acknowledges it can be hard to estimate income when you are self-employed. It asks you to do your best based on past experience, realistic expectations, industry standards and other information.

A practical way to build the estimate:

1. Start with your most recent full year of net profit from your books.
2. Adjust for known changes: a client you lost, a contract you signed, a rate increase.
3. Subtract expected business expenses for the coming year.
4. Write down how you got the number, with the assumptions.

Example estimate note: 2026 net profit from bookkeeping through October, projected to December: about $41,000. For 2027: one retainer client ending in March (minus about $6,000 net), rate increase from January (plus about $3,000). Estimated 2027 net self-employment income: about $38,000. Reviewed quarterly.

The note does not need to be formal. It helps you update the estimate later and explain it if asked.

Proving your income if asked

HealthCare.gov says you may be asked to confirm information on your application, and that a self-employed person may be asked to upload a self-employment ledger. There is no standard format. It needs to be an accurate, detailed record of your self-employment income and expenses: a spreadsheet, an export from accounting software, or even a handwritten ledger book.

If your bookkeeping is up to date, producing one takes minutes.

Update when income changes

This is the part self-employed people most often skip. HealthCare.gov advises that if it looks like your yearly net income will be higher or lower than you estimated, you should update your Marketplace application as soon as possible.

The reason is money:

• If you end up earning more than you reported, you could have to pay back some or all of the premium tax credits you received during the year.
• If you end up earning less, you could qualify for more savings than you claimed.

Comparing actual income against your estimate each quarter, at the same time you think about estimated tax, keeps both on track.

Dates for 2027 coverage

From HealthCare.gov's dates and deadlines page:

• November 1: Open Enrollment starts for the coming year.
• December 15: last day to enroll or change plans for coverage starting January 1.
• January 15: Open Enrollment ends. After that, you can enroll or change plans only if you qualify for a Special Enrollment Period.
• February 1: coverage starts for those who enroll between December 16 and January 15 and pay their first premium.

These are the dates HealthCare.gov publishes. If you enroll through a different state website, confirm the dates on that site.

Common life events for the self-employed

• Leaving a job. Losing job-based coverage for any reason qualifies you for a Special Enrollment Period.
• Taking a job with coverage. You can cancel your Marketplace plan at any time. HealthCare.gov says that once you have an offer of job-based coverage, in most cases you no longer qualify for premium tax credits, whether you enroll or not, with rare exceptions for coverage that is unaffordable or does not meet minimum standards.
• A spouse with family coverage at work. In most cases you will not qualify for premium tax credits. HealthCare.gov also notes that, in most cases, a married couple must file a joint federal return to be eligible for premium tax credits.

For a self-employed applicant, the quality of the health insurance application is the quality of the bookkeeping behind it.