This article is posted with permission from our partner Solo Health Collective. Learn more about Solo at: https://freelancersunion.org/solo

Freelancers and independent contractors often struggle to find an affordable, high-quality health plan. Traditional plans can be expensive, lack flexibility, or offer minimal benefits for self-employed individuals. Freelancers Union partner, Solo Health Collective, is a unique health plan designed specifically for freelancers, solopreneurs, and small business owners. Here’s how it can provide significant tax advantages—and why it’s a great option for independent professionals.

Tax Advantages for Freelancers

One of the biggest benefits of enrolling in Solo Health Collective is the potential for significant tax savings. Here’s how:

Deductible Health Insurance Premium

As a self-employed person, your health insurance premiums are typically tax-deductible as a business expense. This means you can lower your taxable income while maintaining necessary coverage.

Health Savings Account (HSA) Contribution

Solo Health Collective offers HSA-compatible high-deductible health plans (HDHPs). HSAs provide powerful tax benefits:

1. Contributions are tax-deductible (or pre-tax if made through payroll).
2. Funds grow tax-free through investments.
3. Withdrawals for qualified medical expenses are tax-free, providing long-term saving

Deductible Medical Expenses

Many freelancers don’t realize that out-of-pocket medical expenses—including deductibles, copays, and certain procedures—may also be deductible if they exceed a percentage of your adjusted gross income (AGI).

***always consult a tax professional to confirm eligibility and compliance based on your income, state, etc.

Tailored for Independent Professionals

Unlike traditional insurance plans that cater to larger groups, Solo Health Collective is structured to meet the needs of self-employed individuals. It operates as a self-funded health plan through a captive insurance model, which means members gain access to group purchasing power, lower costs, and robust benefits.

Key advantages include:

• Affordable, predictable pricing compared to other traditional health plans
• Access to a national PPO network through MultiPlan PHCS, ensuring quality care anywhere in the U.S.
• HSA-compatible plan options, allowing members to save pre-tax dollars for medical expenses.

Freelancers face unique challenges when it comes to health coverage, but Solo Health Collective offers an innovative solution that combines affordability, flexibility, and tax advantages. By setting up your plan with Solo, you not only gain access to a high-quality healthcare plan but also unlock potential tax savings that can make a real impact on your financial well-being.

Want to learn more? Visit Solo Health Collective’s page to explore your options or schedule a one-on-one consultation with their support team to answer your questions and learn more about the plan.