Reviewed by Tina Price, licensed health insurance advisor, on October 30, 2026.

Health insurance for self-employed Coloradans

If you are self-employed, you buy an individual plan. Your financial help depends on your expected net income for the year you are covered.

Last updated October 30, 2026

The short version

Savings are based on your expected net self-employment income for the coverage year, not last year's.
Update your estimate if your income changes. If your actual income ends up above 400% of the federal poverty level, you repay all of the credit you used.
If you are married, you generally must file a joint tax return to get savings.
Ask a tax professional about the self-employed health insurance deduction.

You shop as an individual

Without an employer plan, you choose from the same individual and family plans as everyone else. Open enrollment runs through January 15, 2027. Enroll by December 15 for a January 1 start.

If you lose other job-based coverage, you may get a special enrollment period. Outside those windows, you generally cannot enroll.

Estimating income when it moves around

Savings are based on your expected net income for the year you are covered, not last year's. Net means business income after business expenses.

Start with last year's tax return and adjust for what you know: contracts signed, slow seasons, a big purchase. Write down how you got your number. If you estimate much lower than your last tax return, you may be asked for documents that support it.

If your income swings, use a realistic middle case, not your best or worst year.

Why accuracy matters more now

The credit is paid in advance and checked on Form 8962 when you file. Starting with tax year 2026, repayment caps are gone. If your actual income ends up above 400% of the federal poverty level, you repay all of the credit.

You can use only part of the credit in advance, or none, and claim the rest at tax time. That lowers the repayment risk if your income is hard to predict.

If your income changes, update your application with Connect for Health Colorado right away.

Colorado help and cost-sharing reductions

Colorado Premium Assistance may lower premiums further for households at or below 400% of the federal poverty level. Connect for Health Colorado decides who qualifies.

If your income is up to 250% of the federal poverty level, enhanced silver plans may lower your deductible and copays. These apply only to silver plans.

The tax deduction

Self-employed people may be able to deduct health insurance premiums on their tax return. The IRS points to Form 7206 for this. The rules interact with the premium tax credit, so ask a tax preparer before you file. We do not give tax advice.

Married or in a household

HealthCare.gov notes that married applicants generally need to file a joint tax return to get savings, with limited exceptions. Household income includes your spouse's income.

Next step

Start from your last tax return and write down a 2027 income estimate. Then price plans with it to see your credit. The 400% amounts are in our tax credit guide.

Want a person to check your pick? A licensed Grove advisor will, at no cost.

Compare plans Call (970) 840-1130

Common questions

Can I use last year's tax return as my estimate?

Only if next year looks about the same. Savings are based on the year you are covered. Adjust for changes you expect.

What if I have a bad year and make less than expected?

If you received less credit than you qualified for, the difference is added to your refund or lowers what you owe. If you received more, you repay the difference.

Do I need a special plan because I am self-employed?

No. You choose from the same individual and family plans. Look at the bronze, silver, and gold options and your real expected costs.

Sources

This guide is general information, not tax or legal advice. Connect for Health Colorado decides eligibility and tax credits.

More guides

All guides