Navigating health insurance as a freelancer, 1099 contractor, or LLC owner is often intimidating. This guide breaks down ACA marketplace tiers, premium tax credits, and tax-deductible health plans.
The 4 Metal Tiers on the ACA Marketplace
- Bronze Plans: Lowest monthly premium, highest deductibles ($7,000–$9,000). Best for healthy individuals wanting catastrophic protection.
- Silver Plans: Moderate premiums. Eligible for Cost-Sharing Reductions (CSR) if your income falls between 100% and 250% of the Federal Poverty Level.
- Gold Plans: Higher monthly premiums, low deductibles ($1,000–$2,000). Ideal for those with ongoing prescription needs or chronic conditions.
- Platinum Plans: Highest monthly premium, virtually zero deductibles. Best for frequent medical care.
The Self-Employed Health Insurance Tax Deduction
Self-employed individuals can deduct 100% of their health and dental insurance premiums directly on IRS Form 1040 Schedule 1, reducing their Adjusted Gross Income (AGI).
Peer-Reviewed Clinical & Policy Sources
- HealthCare.gov / CMS. Affordable Care Act (ACA) Premium Tax Credit Guidelines. Federal Register (2026).
- Internal Revenue Service (IRS). Self-Employed Health Insurance Deduction: Publication 535. IRS.gov.
- Kaiser Family Foundation (KFF). Health Insurance Marketplace Calculator and Subsidy Estimations. KFF Health Policy Report.