By Roberto Salinas · NPN 8551768 · Updated October 6, 2026
Working for yourself means choosing your own health coverage, too. If you freelance, do contract work, or run a business in Texas, the first question is simple: where do you start when there is no employer benefits department?
Health insurance for self-employed Texans starts with understanding your options, estimating your income, and comparing what you would pay when you actually need care. A 1099 form alone does not tell you which plan fits.
Can self-employed workers use the Marketplace?
Yes. Freelancers and independent contractors can apply for individual coverage through the Health Insurance Marketplace. Having no employees does not prevent you from applying. If you have employees, your business may need a different conversation about group coverage. HealthCare.gov explains the distinction.
Financial assistance depends on household circumstances and eligibility—not simply on being self-employed. Check the options available to your household before assuming you will pay full price or qualify for a particular discount.
What if your income changes every month?
Use a realistic estimate of your annual net self-employment income: business income after allowable business expenses. Update your Marketplace application when that estimate changes. An estimate that is too low can lead to repayment of some or all advance premium tax credits. Keep records supporting your estimate. See the income-reporting guidance.
Example: $60,000 in business revenue minus $15,000 in allowable expenses leaves $45,000 in net business income. That is an illustration, not a subsidy calculation. Other countable household income and adjustments can affect the application; your business revenue is not automatically your household income. Check what income counts.
A practical income checklist for freelancers and 1099 workers
- Start with your records: Gather invoices, payment records and business expenses. Use last year’s return as a reference, then account for changes in clients, rates, contracts or seasonal work.
- Estimate the full coverage year: Add income already earned to a realistic forecast for the remaining months, then subtract allowable business expenses. Do not treat one unusually busy month as your normal monthly income.
- Look beyond your business: Include other countable income for your tax household, such as a spouse’s wages. Avoid counting the same income twice when it appears in both your records and a 1099.
- Keep the estimate current: Review it when a contract starts or ends or business expenses change materially. Report changes promptly through your Marketplace application; you do not need to wait until the next Open Enrollment.
Keep the records and assumptions behind your estimate. Follow HealthCare.gov’s steps to report a change. If an expense’s tax treatment is unclear, ask your tax preparer before using it in your estimate.
Compare more than the monthly premium
- Budget: compare the premium with the deductible and other out-of-pocket costs.
- Doctors: check the specific plan’s network for the providers you want.
- Prescriptions: check the covered-drug list for your medications.
- Details: read the plan’s summary of benefits before choosing.
A lower monthly bill is only part of the decision. Use HealthCare.gov’s comparison guidance and our Open Enrollment guide as starting points.
Can you enroll when you start working for yourself?
Starting freelance work alone does not automatically open an enrollment window. Outside Open Enrollment, an event such as losing qualifying job-based coverage may allow a Special Enrollment Period. Timing and eligibility requirements apply, so check before your old coverage ends. Review the qualifying events.
Get help choosing your next step
Bring your income estimate, current coverage information, and doctor and medication lists to the conversation. Precise Insurance can help you review health coverage options for your situation. Contact our team to get started.