Understanding the Affordable Care Act for Self-Employed Workers<\/strong> <\/h2>\n\n\n\nThe ACA expanded access to 1099 medical insurance, ensuring that people without employer-sponsored coverage could get insured, even if they had a pre-existing condition. It also created tax credit programs to help lower-income individuals pay less for their premiums. <\/p>\n\n\n\n
If you want to start your own business, support yourself through freelance projects, or do any kind of contract work, getting a marketplace plan is typically your best bet for finding a reliable, budget-friendly plan. This is especially important as more people take on gig work, such as driving for a rideshare app or delivering food. There aren\u2019t company-provided options for Uber health insurance, DoorDash health insurance, or Lyft health insurance, so if you drive for one of these third-party platforms, you\u2019ll still need to provide your own policy. <\/p>\n\n\n\n
Exploring Coverage Options Under the ACA<\/strong> <\/h2>\n\n\n\nIf you\u2019re self-employed, you can search the state healthcare marketplace, Covered California<\/a>, to browse all available options for standard policies. There will be multiple types of health insurance<\/a> plans, such as HMOs and EPOs. You\u2019ll get a chance to view the benefits and stipulations of each plan, including deductibles, out-of-pocket limits, and monthly premiums. However, you may be able to leverage an ACA savings plan to decrease your monthly costs even more. <\/p>\n\n\n\nQualifying for Marketplace Savings as a Self-Employed Individual<\/strong> <\/h3>\n\n\n\nThe Affordable Care Act bill<\/a> includes something called the Premium Tax Credit to make marketplace coverage more budget-friendly. This refundable tax credit subsidizes monthly premiums for self-employed individuals who earn less than a certain amount. The Premium Tax Credit works on a sliding scale, so the less you earn, the more you can save on your coverage. When signing up for your coverage, a bilingual Freeway agent can walk you through the process for free to find out if you qualify for free or low-cost health insurance. <\/p>\n\n\n\nInstead of waiting until tax season to receive the credit, you can get an advance that goes toward your monthly premiums. For example, if you have a $1,500 premium tax credit, you could decrease your total yearly premiums by up to $1,500. That means you could get up to a $125 discount each month. Or, you could opt not to use the full amount and then receive the remaining sum in bulk when you file your taxes. <\/p>\n\n\n\n
It\u2019s important to note that your tax credit is based on your estimated income. If you end up earning more than you expected and use the full credit, you may have to pay back some of the money during tax season. As a self-employed person, you know that your income can vary based on the availability of gigs in your area, so it\u2019s important to look at your past earnings to come up with an accurate estimate.\u00a0<\/p>\n\n\n
\n![\"Man](\"https:\/\/www.freeway.com\/knowledge-center\/wp-content\/uploads\/sites\/2\/2024\/12\/freeway-understanding-the-affordable-care-act-for-independent-contractors-in-california-2.jpg\")
<\/figure><\/div>\n\n\nAlternative Health Coverage Solutions in CA<\/strong> <\/h3>\n\n\n\nThe ACA for independent contractors isn\u2019t always your only option. As a gig worker, you may also want to see if you qualify for Medi-Cal, California\u2019s Medicaid Program, which will set you up for free or low-cost medical services. If you earn 138% of the federal poverty level or less, you\u2019ll likely qualify. When you apply for health insurance through the California marketplace, your application will automatically be routed to Medi-Cal if you qualify. <\/p>\n\n\n\n
Strategies for Navigating Health Insurance as a Self-Employed Person<\/strong> <\/h2>\n\n\n\nIf you\u2019re a gig worker, there are tons of tips you can use to be proactive about your health insurance<\/a>. Here are a couple of techniques that can make the process easier: <\/p>\n\n\n\n\n- Review your health costs:<\/strong> Look at how much you spent on healthcare in previous years, how often you went to the doctor, and other factors that could help you estimate your future costs. This can help you determine the right level of coverage for you.\u00a0<\/li>\n<\/ul>\n\n\n\n
\n- Keep track of your earnings: <\/strong>If you\u2019re using the premium tax credit, carefully track your income. That way, if you earn too much to qualify, you can plan ahead and save up to pay back any overages.\u00a0<\/li>\n<\/ul>\n\n\n\n
\n- Check your spouse\u2019s coverage:<\/strong> If you\u2019re married and your spouse is employed, you may be able to get coverage through their job instead of signing up for your own policy.\u00a0<\/li>\n<\/ul>\n\n\n\n
Potential Challenges and Workarounds<\/strong> <\/h2>\n\n\n\nManaging your own health insurance for gig workers can be difficult, but it\u2019s easier when you know what to expect. Understanding common hurdles can help you set yourself up for success and keep costs low. <\/p>\n\n\n\n
Dealing with High-Cost Plans<\/strong>\u00a0<\/h3>\n\n\n\nMany plans on the marketplace can be expensive. First, check and see if you qualify for the Premium Tax Credit. If you don\u2019t, you may still be able to find a plan that works with your budget. Sort the options by monthly cost, then see if one of the cheaper plans fits in with your healthcare needs. High-deductible plans often allow you to set up a tax-deferred Health Savings Account you can use to fund healthcare expenses. <\/p>\n\n\n\n
Assembly Bill 5 and Its Impact on Health Coverage<\/strong> <\/h3>\n\n\n\nIn California, Assembly Bill 5 transformed how workers are classified, which means that some independent contractors actually qualify as employees. Under the law, employers need to prove that independent contractors aren\u2019t employees by confirming they meet these standards<\/a>: <\/p>\n\n\n\n\n- The company doesn\u2019t control how the contractor performs their services.\u00a0<\/li>\n<\/ul>\n\n\n\n
\n- The contractor is doing work that doesn\u2019t fit in with the company\u2019s standard operations.\u00a0<\/li>\n<\/ul>\n\n\n\n
\n- The worker typically performs independent contracting work.\u00a0<\/li>\n<\/ul>\n\n\n\n
Staying Informed and Compliant with ACA Regulations<\/strong>\u00a0<\/h2>\n\n\n\nHealthcare legislation can change over time, so it\u2019s important to regularly review local laws and make sure you\u2019re up to date with any expectations. If you ever expand your independent contracting business and hire other employees, you\u2019ll also have to review your obligations as an employer when it comes to offering group insurance. <\/p>\n\n\n\n
Make Sure You\u2019re Covered<\/strong> <\/h2>\n\n\n\nAs an entrepreneur, nothing can disrupt your business like unexpected health problems. By signing up for an affordable plan through Covered California, you can get the benefits you deserve without relying on an employer\u2019s health plan. Signing up for tax subsidies and choosing the right plan can get you the protection you need while you work as an independent contractor. <\/p>\n\n\n\n
Having the right guidance can make a huge difference when exploring health plans as an independent contractor. At Freeway, we can help you pick out the perfect policy for both your medical needs and your budget for free. Set yourself up for success by talking to an agent at a local Freeway Insurance office<\/a>, getting an online quote<\/a>, or calling the team at 877-930-1317<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"Figuring out independent contractor health insurance is one of the very first steps you should take when becoming an entrepreneur. As a self-employed individual, you don\u2019t get access to employer-sponsored health coverage, so you\u2019ll need to look for a plan through the healthcare marketplace. The Affordable Care Act (ACA) makes it easy for freelancers and […]<\/p>\n","protected":false},"author":1002630,"featured_media":10625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,59],"tags":[],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002630"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=10623"}],"version-history":[{"count":1,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623\/revisions"}],"predecessor-version":[{"id":10626,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623\/revisions\/10626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media\/10625"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=10623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=10623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=10623"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=10623"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=10623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
If you\u2019re self-employed, you can search the state healthcare marketplace, Covered California<\/a>, to browse all available options for standard policies. There will be multiple types of health insurance<\/a> plans, such as HMOs and EPOs. You\u2019ll get a chance to view the benefits and stipulations of each plan, including deductibles, out-of-pocket limits, and monthly premiums. However, you may be able to leverage an ACA savings plan to decrease your monthly costs even more. <\/p>\n\n\n\n The Affordable Care Act bill<\/a> includes something called the Premium Tax Credit to make marketplace coverage more budget-friendly. This refundable tax credit subsidizes monthly premiums for self-employed individuals who earn less than a certain amount. The Premium Tax Credit works on a sliding scale, so the less you earn, the more you can save on your coverage. When signing up for your coverage, a bilingual Freeway agent can walk you through the process for free to find out if you qualify for free or low-cost health insurance. <\/p>\n\n\n\n Instead of waiting until tax season to receive the credit, you can get an advance that goes toward your monthly premiums. For example, if you have a $1,500 premium tax credit, you could decrease your total yearly premiums by up to $1,500. That means you could get up to a $125 discount each month. Or, you could opt not to use the full amount and then receive the remaining sum in bulk when you file your taxes. <\/p>\n\n\n\n It\u2019s important to note that your tax credit is based on your estimated income. If you end up earning more than you expected and use the full credit, you may have to pay back some of the money during tax season. As a self-employed person, you know that your income can vary based on the availability of gigs in your area, so it\u2019s important to look at your past earnings to come up with an accurate estimate.\u00a0<\/p>\n\n\n The ACA for independent contractors isn\u2019t always your only option. As a gig worker, you may also want to see if you qualify for Medi-Cal, California\u2019s Medicaid Program, which will set you up for free or low-cost medical services. If you earn 138% of the federal poverty level or less, you\u2019ll likely qualify. When you apply for health insurance through the California marketplace, your application will automatically be routed to Medi-Cal if you qualify. <\/p>\n\n\n\n If you\u2019re a gig worker, there are tons of tips you can use to be proactive about your health insurance<\/a>. Here are a couple of techniques that can make the process easier: <\/p>\n\n\n\n Managing your own health insurance for gig workers can be difficult, but it\u2019s easier when you know what to expect. Understanding common hurdles can help you set yourself up for success and keep costs low. <\/p>\n\n\n\n Many plans on the marketplace can be expensive. First, check and see if you qualify for the Premium Tax Credit. If you don\u2019t, you may still be able to find a plan that works with your budget. Sort the options by monthly cost, then see if one of the cheaper plans fits in with your healthcare needs. High-deductible plans often allow you to set up a tax-deferred Health Savings Account you can use to fund healthcare expenses. <\/p>\n\n\n\n In California, Assembly Bill 5 transformed how workers are classified, which means that some independent contractors actually qualify as employees. Under the law, employers need to prove that independent contractors aren\u2019t employees by confirming they meet these standards<\/a>: <\/p>\n\n\n\n Healthcare legislation can change over time, so it\u2019s important to regularly review local laws and make sure you\u2019re up to date with any expectations. If you ever expand your independent contracting business and hire other employees, you\u2019ll also have to review your obligations as an employer when it comes to offering group insurance. <\/p>\n\n\n\n As an entrepreneur, nothing can disrupt your business like unexpected health problems. By signing up for an affordable plan through Covered California, you can get the benefits you deserve without relying on an employer\u2019s health plan. Signing up for tax subsidies and choosing the right plan can get you the protection you need while you work as an independent contractor. <\/p>\n\n\n\n Having the right guidance can make a huge difference when exploring health plans as an independent contractor. At Freeway, we can help you pick out the perfect policy for both your medical needs and your budget for free. Set yourself up for success by talking to an agent at a local Freeway Insurance office<\/a>, getting an online quote<\/a>, or calling the team at 877-930-1317<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":" Figuring out independent contractor health insurance is one of the very first steps you should take when becoming an entrepreneur. As a self-employed individual, you don\u2019t get access to employer-sponsored health coverage, so you\u2019ll need to look for a plan through the healthcare marketplace. The Affordable Care Act (ACA) makes it easy for freelancers and […]<\/p>\n","protected":false},"author":1002630,"featured_media":10625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,59],"tags":[],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002630"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=10623"}],"version-history":[{"count":1,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623\/revisions"}],"predecessor-version":[{"id":10626,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10623\/revisions\/10626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media\/10625"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=10623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=10623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=10623"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=10623"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=10623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Qualifying for Marketplace Savings as a Self-Employed Individual<\/strong> <\/h3>\n\n\n\n
<\/figure><\/div>\n\n\nAlternative Health Coverage Solutions in CA<\/strong> <\/h3>\n\n\n\n
Strategies for Navigating Health Insurance as a Self-Employed Person<\/strong> <\/h2>\n\n\n\n
\n
\n
\n
Potential Challenges and Workarounds<\/strong> <\/h2>\n\n\n\n
Dealing with High-Cost Plans<\/strong>\u00a0<\/h3>\n\n\n\n
Assembly Bill 5 and Its Impact on Health Coverage<\/strong> <\/h3>\n\n\n\n
\n
\n
\n
Staying Informed and Compliant with ACA Regulations<\/strong>\u00a0<\/h2>\n\n\n\n
Make Sure You\u2019re Covered<\/strong> <\/h2>\n\n\n\n