Self-employed · California · 2027
Health insurance for self-employed people in California: your 2027 options and costs
With no employees, you buy as an individual: in California that means Covered California, the only place the premium tax credit applies, or a private plan outside it. In 2026, California Marketplace plans averaged $737 a month per person before the credit and $264 after it. Your premiums can also come off your federal taxes.
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What self-employed health insurance costs in California
1,927,371 California residents picked a 2026 Marketplace plan and 81.9% of them got the advance premium tax credit.Source Insurers proposed a median 15% increase for 2027 nationwide, so check your renewal price before you let it roll over.Source
Your 4 coverage options in California
1.A Marketplace plan on Covered California
With no employees, you shop the individual Marketplace, not the small-business SHOP exchange; contractors you pay do not count as employees.Source It is the only place the premium tax credit applies, and plans cannot turn you down for a pre-existing condition.Source Apply at Covered California.Source2.A private plan bought outside the Marketplace
Some carriers sell individual plans off the exchange. Depending on the product, they may ask health questions, so a healthy applicant may find a better fit and an applicant with a diagnosis may find none. Short-term plans in California: Short-term limited duration health insurance cannot be issued, sold, renewed or offered in California. The prohibition took effect January 1, 2019 under Senate Bill 910.Source See the five coverage alternatives.3.A spouse's employer plan
Often the simplest answer. Months you could join a spouse's employer-subsidized plan are months you cannot claim the self-employed deduction, whether or not you enroll.Source4.A health-share arrangement
Members share eligible medical bills. It is not insurance, there is no guarantee a bill is paid, and pre-existing conditions are often limited. Read the self-employed guide before you join one.
If your income is low this year: California adopted Medicaid expansion (Medi-Cal, implemented January 1, 2014).Source
The self-employed health insurance deduction
Premiums for you, your spouse and your dependents can come off your federal income on Schedule 1 (Form 1040), figured on Form 7206.Source The deduction stops at the net profit of the business the plan is underSource and skips months you could join an employer-subsidized plan, yours or a spouse's.Source The full walkthrough is in how to write off health insurance.
Free calculator
Estimate your health insurance tax deduction
Premiums you could deduct
$8,844
Federal income tax it could save
$1,946
The premium starts at the 2026 California Marketplace average before the tax credit. Count only months you could not join an employer-subsidized plan, yours or a spouse's. If you get a premium tax credit, deduct only what you paid after it. Federal income tax only; state tax and self-employment tax are not included. An estimate, not tax advice.
Federal rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%.Source
2027 dates and limits for California
Open Enrollment: Covered California states that anyone can apply during open enrollment, November 1 to January 31. Apply by December 31 for a January 1 start; apply in January for a February 1 start.Source Every state's 2027 dates.
Out-of-pocket ceiling: Marketplace plans cap 2027 out-of-pocket costs at $12,000 for one person and $24,000 for a family.Source
Self-employed health insurance in California: FAQs
How much is health insurance for a self-employed person in California?
In 2026, California Marketplace plans averaged $737 a month per person before the premium tax credit and $264 after it; 81.9% of buyers got the credit (CMS). The benchmark silver plan for a 40-year-old averaged $570 a month before any credit (KFF). Your price depends on your age, county, income and the plan you pick. Insurers proposed a median 15% increase for 2027 (KFF).
Where do self-employed people in California buy health insurance?
With no employees, you shop as an individual, not through the small-business SHOP exchange (HealthCare.gov). In California that Marketplace is Covered California, the only place the premium tax credit applies. You can also buy a private plan outside the Marketplace, join a spouse's employer plan, or use a health-share arrangement, which is not insurance.
Can I deduct health insurance premiums if I am self-employed in California?
Often, yes, on your federal return. The self-employed health insurance deduction (IRS Form 7206, Schedule 1 line 17) covers premiums for you, your spouse and dependents, up to the net profit of your business, and only for months you could not join an employer-subsidized plan through your own job or your spouse's (IRS Publication 502).
When is open enrollment for 2027 in California?
Covered California states that anyone can apply during open enrollment, November 1 to January 31. Apply by December 31 for a January 1 start; apply in January for a February 1 start.
Can a self-employed person in California get Medicaid?
California adopted Medicaid expansion (Medi-Cal, implemented January 1, 2014).
More for self-employed people
- Health insurance for self-employed people, the full guide
- Health insurance in California, every state fact with its source
- How the rules differ by state
- Catastrophic-first coverage at 40, 50 and 60
Self-employed in another state: Washington, Arizona, Colorado, Texas, South Dakota, North Dakota, Missouri, Tennessee, Michigan, Georgia, Florida, North Carolina, Pennsylvania.
Educational only. Not tax, legal, medical or personalized insurance advice. Plans are offered and underwritten by third-party carriers. Facts checked 2026-09-14; rules change, so confirm anything you plan around at the linked source.