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Home › Self-employed coverage

Health insurance for self-employed Tennesseans

Freelancers, contractors, gig workers and sole proprietors: your options and how tax credits work.

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You can use the Marketplace

HealthCare.gov treats you as self-employed if you run a business that takes in income but has no employees. Freelancers, consultants, independent contractors, rideshare and delivery drivers and other gig workers can buy an individual Marketplace plan and may qualify for a premium tax credit. Hiring independent contractors doesn't make you an employer.

If your business has at least one W-2 employee other than you, your spouse or family members, you may be able to offer coverage through the SHOP (small business) Marketplace instead.

Estimating self-employment income

Your tax credit is based on your estimated net self-employment income for the year you want coverage (after business expenses), not last year's income. If your income swings, update your HealthCare.gov application during the year so your advance credit stays close to right. If you underestimate, you may repay some of the credit at tax time.

The self-employed health insurance deduction

Many self-employed people can deduct health insurance premiums they pay. The IRS uses Form 7206 for this deduction, and special rules apply when you also get a premium tax credit. Ask a tax professional how it applies to you; Chuck can't give tax advice.

If you want to save for qualified medical expenses alongside your insurance, see how HSAs work for Tennessee Marketplace shoppers.

Life changes that let you enroll mid-year

If you later get a job that offers affordable coverage, you can cancel your Marketplace plan, and you'll usually no longer qualify for a tax credit.

What about health sharing?

Some self-employed people look at health care sharing ministries because the monthly amount can be lower. They are not insurance: there is no guarantee your bills will be paid, pre-existing conditions are often limited, and premium tax credits can't be used. Health sharing explained.

Suggested vendor (agent link)Open Best Health Sharing Plan Health sharing membership (not insurance or a QHP under federal law)Opens in a new tab

Health sharing is not insurance. Health care sharing ministries are not insurance companies, are not regulated as insurance in Tennessee (Tenn. Code Ann. § 56-7-116), are not ACA Marketplace plans, and do not qualify for premium tax credits. Tennessee notice (Tenn. Code Ann. § 48-51-201): "Notice: The organization facilitating the sharing of medical expenses is not an insurance company, and neither its guidelines nor plan of operation is an insurance policy. Whether anyone chooses to assist you with your medical bills will be totally voluntary because no other participant will be compelled by law to contribute toward your medical bills. As such, participation in the organization or a subscription to any of its documents should never be considered to be insurance. Regardless of whether you receive any payments for medical expenses or whether this organization continues to operate, you are always personally responsible for the payment of your own medical bills."

Suggested vendors

Agent links: these are links Chuck may be paid through if you buy. Using them never changes your price. See disclosures.

Common questions

Can a self-employed person get a tax credit?
Yes, if your estimated net income and household qualify and you don't have an offer of affordable job-based coverage (including through a spouse).
I have a few contractors. Am I an employer?
No. HealthCare.gov says hiring independent contractors does not by itself make you an employer. Employees are generally workers you report on a W-2.
Talk it through with a licensed Tennessee agent. Free, no-pressure help comparing your options, by video or phone.
Book a free video or phone consultation

Sources

  1. HealthCare.gov, Health coverage if you're self-employed. https://www.healthcare.gov/self-employed/coverage/
  2. HealthCare.gov, Saving money on health insurance. https://www.healthcare.gov/lower-costs/
  3. HealthCare.gov, Special Enrollment Period. https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/
  4. IRS, About Form 7206, Self-Employed Health Insurance Deduction. https://www.irs.gov/forms-pubs/about-form-7206

Checked October 24, 2026.