Today, employers are not required to offer workers or their dependents medical insurance. Several federal and state laws govern various aspects of how businesses must handle insurance issues. Which laws apply to your business depends on how many employees you have and the type of coverage you provide.
Sole proprietors and self-employed individuals are by definition individuals and so must purchase insurance on the individual market. In most cases, they are not eligible for the group health plans offered to small businesses; although, certain self-employed individuals may purchase health insurance through professional or trade associations. However, note that "it just takes two" to be considered a small business. Sole proprietors who have at least one employee may qualify as a small business and be eligible for group insurance and its protections. Click on the link for Information on Small Group Insurance.
At a Glance
One advantage that the sole proprietor has over an individual who is not self-employed is that the premium paid for his/her individual health insurance is 100% deductible from Federal Income Tax.
For more information about purchasing insurance on the Individual Market, go to the section on this website entitled, “Comparing Private Insurance Options".