Self-Employed Health Insurance Options (and Where ICHRA Fits)
June 24, 2026 · 4 min read
If you''re self-employed, health insurance is on you — and the right approach depends on whether you have employees. Here are the main options, in plain terms.
With no employees
Your primary route is the individual market: buy an ACA marketplace plan, where you may qualify for premium subsidies based on income, and potentially claim the self-employed health insurance deduction at tax time. This is usually the simplest path for solo owners.
Once you have W-2 employees
A new option opens up: an ICHRA. You can reimburse your employees tax-free for individual coverage without a group plan — a powerful way to offer benefits as you grow, with a budget you control.
The owner-eligibility catch
Whether you, the owner, can participate in your own ICHRA depends on your business structure. C-corporation owners generally can; sole proprietors, partners, and most S-corp owners generally cannot receive tax-free reimbursements through it — though their employees can. Confirm your situation with a broker or tax advisor.
The short version
Solo and self-employed: look to the marketplace and the self-employed deduction. Once you''re hiring: an ICHRA lets you cover your team tax-free — just check how your own ownership is treated.
The self-employed health insurance deduction
If you are self-employed with no employees, one of your best tools is the self-employed health insurance deduction, which lets you deduct your premiums on your tax return even if you do not itemize. It is not an HRA, but it is a real tax break that an HRA cannot replace for a solo owner.
Marketplace subsidies for the self-employed
Self-employed people buy on the individual market and may qualify for a premium tax credit based on income, which can significantly lower the net cost of a plan. Pairing a subsidized marketplace plan with an HSA-eligible option is a common, tax-efficient setup for solo owners.
When hiring a W-2 employee changes things
Once you have a bona fide W-2 employee, you can set up an ICHRA — and whether you as the owner can participate depends on your business structure. C-corp owners generally can; S-corp owners over 2 percent, sole proprietors, and partners generally cannot participate tax-free. Confirm your situation with your accountant.
Frequently asked questions
Solo: an ACA marketplace plan (possibly with a subsidy) plus the self-employed health insurance deduction. With W-2 employees: an ICHRA to reimburse your team tax-free.
Health benefits the modern way
Tell us about your team and get a free, no-obligation ICHRA quote — usually within 24 hours.