As a photography business owner, you likely love the freedom and creativity that comes with running your own business. However, being self-employed also comes with some challenges, and health insurance is often one of the most pressing concerns. Navigating the complexities of health insurance can be overwhelming, but it’s crucial for both your personal well-being and financial security.

This guide will walk you through the key aspects of health insurance for photography business owners, including the tax benefits, how to find the right plan, and what to expect in terms of costs.

Why Health Insurance is Important for Photography Business Owners

Health insurance isn’t just a luxury—it’s a necessity. Even if you’re in good health, unexpected medical emergencies can arise at any time. Whether it’s a broken bone or a severe illness, medical costs in the U.S. can be astronomical without insurance. Health insurance provides financial protection and access to necessary care.

If this doesn’t sound like it could happen to know, let me speak from experience – things happen. Every year that ticks by with minimal illnesses or problems, means the next year might just hold something in store. I am pretty objectively a healthy, active person – not prone to getting sick or having medical problems most of my life (and I’m thankful for it!). This past year, I’ve been hit with sickness after sickness ranging from colds to bronchitis, and even having some dermatology issues thrown in…leaving me way more reliant on seeing a doctor for help.

I don’t love paying for insurance, and yes, often feel like it’s a scam in a lot of ways (lol) – but the truth is I’ve had to put it to use and many others will be in a similar position at some point.

For business owners, maintaining good health means more time to focus on building your business and fewer worries about medical costs. Even if you’re only getting health insurance for catastrophic events, having that safety net can be a game-changer.

Tax Benefits of Health Insurance Plans

One of the advantages of purchasing health insurance as a business owner is the potential tax benefits. Health insurance premiums are often tax-deductible as a business expense, meaning they can reduce your taxable income, ultimately lowering the amount you owe come tax season.

Additionally, through federal and state marketplace plans, you may qualify for premium tax credits based on your income. These subsidies are designed to make health insurance more affordable for small business owners and self-employed individuals. We’ll discuss how these subsidies work later in this guide.

How to Get Health Insurance Using the Federal or State Marketplace

If you’re a self-employed photographer in the U.S., you can purchase health insurance through the federal government’s healthcare website, Healthcare.gov, or through your state’s marketplace if they have one.

Here’s a step-by-step guide to getting health insurance as a self employed photographer:

1. Submit an Application: Visit Healthcare.gov or your state’s marketplace and fill out an application. You’ll need to provide information about your income, household size, and personal details.
2. Review Your Plan Options: After submitting the application, you’ll be able to see the available insurance plans in your area. Plans are categorized into tiers: Bronze, Silver, and Gold, based on the level of coverage and cost.
3. Select a Plan: Choose a plan that fits both your healthcare needs and budget. You can compare different options based on premiums, deductibles, co-pays, and coverage.
4. Check for Subsidies: Based on the information you provided, you may be eligible for subsidies (premium tax credits) that will lower your monthly premium. These subsidies are based on your income level and are calculated when you submit your application.

You can get help from customer support or even by consulting with an accountant to help you review your options and make better financial decisions.

Understanding Different Health Insurance Plans: Gold, Silver, and Bronze

Health insurance plans in the marketplace are divided into three primary tiers: Gold, Silver, and Bronze.

Each tier offers different levels of coverage, and it’s essential to choose one based on your healthcare needs and budget.

• Gold Plans: Gold plans have the highest monthly premiums but cover the most healthcare costs. They typically have lower deductibles, meaning you’ll pay less out of pocket when you need medical care. These plans are ideal for people who expect frequent doctor visits or need regular medications.
  
• Silver Plans: Silver plans strike a balance between cost and coverage. They have moderate premiums and moderate deductibles. If you qualify for subsidies, Silver plans may also offer cost-sharing reductions, further lowering your out-of-pocket expenses. This is a popular option for many self-employed individuals.
  
• Bronze Plans: Bronze plans have the lowest premiums but the highest out-of-pocket costs. These plans are best suited for people who are generally healthy and want insurance primarily for catastrophic events. While your monthly cost is lower, you’ll have higher deductibles and co-pays if you need care.

Within each plan, you will have options to select from different health care providers, but the specifics will depend on what options are available in your area. A few popular networks include Capital Blue, Tower Health, Aetna, and many others.

Average Costs and Expectations

Health insurance costs vary depending on factors such as location, age, plan type, and income. On average, a Bronze plan might cost between $300 to $600 per month for an individual, whereas a Gold plan could range from $500 to $1,000 per month. However, these prices can be significantly reduced if you qualify for subsidies.

There are ways to structure your business and take advantage of certain tax deductible expenses to help you access more of these subsidies while retaining more of your profit. This is something we teach about in our Shoot and Thrive Financial Management course, and can be supported by working with a CPA to help review your specific circumstances.

Aside from the monthly premium, it’s also important to factor in deductibles, co-pays, and coinsurance. For example, Bronze plans usually have deductibles in the range of $5,000 to $7,000, while Gold plans may have deductibles closer to $1,000 to $2,500.

How Health Insurance Subsidies Work

Health insurance subsidies are designed to make coverage more affordable based on your income. The amount of subsidy you receive is determined by your household income relative to the federal poverty level (FPL).

If your income falls between 100% and 400% of the FPL, you may qualify for premium tax credits. These credits reduce your monthly premium and are applied directly to your plan when you enroll.

If your income fluctuates (as it often does for business owners), it’s important to estimate your income accurately when applying for insurance. If you underestimate and your income is higher than expected, you may owe some of the subsidies back when you file your taxes.

I will admit, judging your “income” can be a little frustrating when you are self-employed – but the main figure you are looking for is how much money are you keeping after businesses expenses and taxes. Your income might be dolled out in owners draws, payroll, or frankly some of it might even just continue to “sit” in your business bank account – but any of this profit (or money that flows to you such as through payroll) is your “income” for health insurance reporting purposes.

What to Expect When Working with Health Insurance

When selecting a health insurance plan, here’s what you should think about:

1. Monthly Premium: This is the amount you pay each month for coverage. Plans with lower premiums often come with higher deductibles.
2. Deductible: The amount you must pay out-of-pocket for medical services before your insurance starts to cover costs. Bronze plans typically have higher deductibles, while Gold plans have lower deductibles.
3. Co-payments and Coinsurance: Even after meeting your deductible, you may still be responsible for co-pays (a set amount per service) or coinsurance (a percentage of the service cost).
4. Out-of-Pocket Maximum: This is the maximum amount you’ll pay in a year before your insurance covers 100% of costs. After reaching this limit, all additional medical costs for the year are covered by your insurance.

Conclusion: The Importance of Health Insurance for Photographers

For photography business owners, health insurance is a safeguard against financial hardship in case of illness or injury. Whether you opt for a Bronze plan to cover catastrophic events or a Gold plan for comprehensive coverage, having health insurance is crucial to ensuring your well-being and your business’s success.

Taking the time to explore your options through the state or federal marketplaces can help you find the right plan that fits your needs. And don’t forget—there are potential tax benefits and subsidies available to make health insurance more affordable for self-employed photographers.

For more insights into managing your photography business, be sure to check out our Shoot and Thrive business course, where we cover everything from health insurance to marketing strategies.