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Benefits & Insurance
Calculators and guides for health insurance, tax deductions, and coverage decisions.
Why this matters
Health insurance is your biggest freelance expense
The average ACA marketplace premium in 2026 is $462/month before subsidies. For an hourly worker earning $25/hour, that is 4.26 hours every week — over 220 hours per year — spent just paying for health insurance. These calculators convert insurance costs into the currency you actually think in: hours of work.
The self-employed health insurance deduction lets you deduct 100% of premiums from your taxes. For someone in the 22% bracket paying $7,200/year in premiums, that saves $1,584 annually. Most freelancers miss this deduction because they do not know about Form 7206.
Insurance calculators
Calculate your insurance costs in hours and dollars.
The 2026 insurance landscape
Enhanced ACA premium subsidies expired on December 31, 2025. Average net marketplace premiums rose 58% in 2026, from $113/month to $178/month. Search interest in "cost of health insurance" has doubled year-over-year. Health insurance costs are projected to rise another 8–9% in 2027, hitting a 17-year high.
For freelancers and hourly workers, this makes the self-employed health insurance deduction more valuable than ever. It also makes it critical to compare your options: COBRA, marketplace plans, Medicaid, and spouse coverage all have very different costs.
Frequently asked questions
How does health insurance affect my taxes as a freelancer?
You can deduct 100% of your health insurance premiums through the self-employed health insurance deduction (Form 7206). This is an above-the-line deduction that reduces your adjusted gross income whether you itemize or take the standard deduction.
What is the cheapest health insurance for self-employed people?
ACA Marketplace plans with premium tax credits are usually cheapest. In 2026, the average after-subsidy premium is $178/month. If your income is low, Medicaid may be free. Compare options using the hours-to-pay-insurance calculator.
How many hours do I work to pay for health insurance?
At the 2026 average premium of $462/month and $25/hour wage, you work about 4.26 hours per week or 18.5 hours per month just to pay health insurance. Use the hours-to-pay-insurance calculator for your numbers.
Can I deduct health insurance if I have a W-2 job too?
Only if you were NOT eligible for your employer's health plan (or your spouse's) during the months you claim the deduction. If you are eligible for an employer plan, those months do not qualify for the self-employed health insurance deduction.
What happens to my health insurance when I quit my job?
You have 60 days to enroll in an ACA Marketplace plan (Special Enrollment Period) or elect COBRA. COBRA averages $599/month; marketplace averages $178/month after subsidies. Do not go uninsured — even one day carries financial risk.
Insurance guides
Is Health Insurance Deductible on a 1099?
Yes — 1099 contractors can deduct 100% of health insurance premiums through the self-employed health insurance deduction. Learn eligibility, limits, and how to claim it.
Read guide Field guideHealth Insurance Between Jobs: A Guide for Hourly Workers
What happens to your health insurance when you quit or lose a job. COBRA, marketplace special enrollment, and coverage gaps for U.S. hourly workers.
Read guide