How Low-Income Contractors Can Get Nearly Free Health Insurance

Most contractors overpay for health insurance by thousands each year. Not because they want to. Because they don't know what they qualify for.

At Aura Insure, we've made it our mission to help self-employed individuals navigate the complex world of health insurance. The good news? If you're a gig worker, freelancer, or small business owner with a modest income, you might qualify for substantial subsidies that could dramatically reduce your premium costs.

Let's break down exactly how to access these benefits and protect your health without breaking the

bank.

Understanding Available Subsidies

The enhanced premium tax credits for ACA Marketplace plans have been extended through 2025, creating an unprecedented opportunity for self-employed workers. These credits allow many gig workers to pay as little as $0 monthly for health insurance if their income falls at or below 150% of the Federal Poverty Level. Yes, you read that correctly – zero dollars for qualified individuals.

Who qualifies? For 2025, self-employed individuals earning between $15,060 and $60,240 can receive premium subsidies. Families aren't left out either – a family of three would qualify with income between $25,820 and $103,280.

These aren't small discounts. They can reduce your monthly premiums by hundreds of dollars.

Step-by-Step Guide to Claiming Your Subsidies

Ready to start saving? Follow these straightforward steps:

Step 1: Gather your income documentation

Collect your tax returns, 1099 forms, profit and loss statements, or any other documentation that accurately reflects your income. For contractors with variable income, you'll need to estimate your annual income as accurately as possible.

Pro tip: If your income fluctuates, provide your best estimate. You can always update it later if things change.

Step 2: Visit the Health Insurance Marketplace

Go to Aura-Insure.com or your state's health insurance marketplace. Create an account if you don't already have one.

The application process will walk you through entering your personal and income information. Be honest and thorough – this determines your subsidy amount.

Step 3: Compare plans with your subsidy applied

After completing your application, you'll see available plans with your subsidy already factored into the displayed prices. This makes it easy to understand your actual costs.

Look beyond the premium price. Consider deductibles, copays, and whether your preferred healthcare providers are in-network.

Step 4: Enroll in your chosen plan

Once you've selected the plan that best fits your needs and budget, complete the enrollment process. Make note of when your coverage begins and any initial payments required.

Additional Tax Benefits You Shouldn't Miss

Beyond marketplace subsidies, self-employed individuals can deduct 100% of their health insurance premiums on their taxes as an adjustment to income. This includes costs for yourself, your spouse, and any dependents – a significant tax benefit that many gig workers don't realize they qualify for.

This deduction works differently than itemized deductions. It reduces your adjusted gross income, potentially qualifying you for other tax benefits.

To claim this deduction:

1. Report your health insurance premiums on Schedule 1 of Form 1040

2. Make sure your business shows a profit on Schedule C

3. Keep detailed records of all premium payments

When to Apply Outside Open Enrollment

Typically, you can only enroll in marketplace plans during the annual Open Enrollment Period. However, many life changes qualify you for a Special Enrollment Period, including:

• Loss of existing health coverage

• Changes in household (marriage, birth, adoption)

• Changes in residence

• Income changes that affect subsidy eligibility

If you experience any of these qualifying events, you generally have 60 days to enroll in a new plan.

Protecting Your Health and Your Business

Health insurance isn't just about protecting your physical wellbeing – it's about protecting your financial future and your business. A single unexpected medical event without insurance can devastate your finances and derail your professional goals.

We believe everyone deserves access to affordable health coverage, especially those building businesses and contributing to the economy as independent workers.

At Aura Insure, our motto is "Protect your Aura" because we understand that your health, your business, and your peace of mind are all interconnected. Taking advantage of available subsidies is one of the smartest ways to ensure all aspects of your wellbeing remain protected.

Next Steps

Ready to explore your options? Start by estimating your annual income and visiting Aura-Insure.com to see what plans and subsidies you qualify for.

If you need guidance navigating the process, we're here to help. Our team specializes in finding the right coverage for self-employed individuals, gig workers, and small business owners.

Remember, protecting your health doesn't have to break the bank. With the right approach, you can secure quality coverage at a price that works for your budget – possibly even for free.

Your health is your most valuable asset. Protect it wisely.