Self-Employed? Here’s How to Save Money on Health Insurance in 2025
Whether you’re a full-time freelancer, small business owner, or independent contractor, the good news is that there are smart ways to save money on health insurance in 2025 without sacrificing coverage.
Step-by-Step Guide to Choosing the Best Health Insurance for the Self-Employed
Let’s break it down based on your income, health, and goals.
1. Lower Income? Leverage Marketplace Subsidies
If your income falls within the qualifying range, you can get premium tax credits (aka subsidies) through the Health Insurance Marketplace. These subsidies significantly reduce your monthly premium based on your income level and household size.
In fact, one of the most searched terms this year is "health insurance premium tax credit 2025"—because it’s a real opportunity to lower costs. Many self-employed individuals can access affordable health insurance for self-employed people by navigating the marketplace strategically.
Look for plans labeled Silver Tier—these offer the best value, especially if you qualify for Cost-Sharing Reductions (CSRs).
For more on what makes a plan affordable, check out our blog on How to lower your medical bills like a pro.
2. Higher Income? Consider Medically Underwritten Plans
If you’re in good health and don’t qualify for subsidies, a medically underwritten health plan (also known as private or short-term health insurance) might be a better fit.
These plans require health screening but offer significantly lower premiums—perfect for healthy business owners who want to reduce costs without losing basic coverage. Many entrepreneurs search “private health insurance vs. marketplace plans” to compare benefits, and this is where a side-by-side review can make all the difference.
Just make sure to work with an expert (that’s us!) to avoid plans with major gaps.
How to Legally Write Off Health Insurance Premiums as a Self-Employed Individual
Here’s the perk most business owners overlook: You can deduct 100% of your health insurance premiums from your taxable income.
This applies if:
- You’re self-employed with a net profit
- You aren’t eligible for employer-sponsored coverage elsewhere
- The policy is in your (or your business’s) name
The deduction also includes premiums for your spouse and dependents. That’s real savings—especially at tax time. This is a huge reason why “health insurance tax deduction for self-employed” is a trending topic in 2025.
Tips for Finding Affordable Health Insurance in 2025
Finding the best health plans for freelancers and business owners starts with these key moves:
- Always compare Marketplace vs. private plan premiums
- Use income forecasting tools to maximize subsidies
- Revisit your plan annually—your needs (and the plans) can change quickly
Most importantly, work with a licensed advisor to help navigate the nuances of health insurance coverage. It saves you time, stress, and potentially a ton of money.
Need Help Finding the Right Plan for Your Business?
Health insurance can be one of your biggest business expenses—or one of the smartest investments you make. At Insurance Elevated, we specialize in helping self-employed pros like you find custom-fit coverage that protects your health and your wallet.
