Most apps treat drivers as independent contractors, so you buy your own coverage. On the Marketplace, your premium tax credit is based on your income after business expenses, so tracking miles can matter. If you earn too much for real help and you're healthy, compare a private plan. And since you work on the road, check that the network covers where you drive.
No employer, no plan: your three options
- A Marketplace plan. Takes everyone and covers pre-existing conditions. Your price depends on your income for the year, and many drivers qualify for a premium tax credit.
- A private plan. Priced on your age and health, often with PPO networks, and can usually start any month. It asks health questions and can say no, may exclude pre-existing conditions, and doesn't have to cover every ACA benefit.
- Someone else's plan. A spouse's work plan, or a parent's plan if you're under 26. Compare the cost of being added.
The number most drivers get wrong
When you apply on the Marketplace, HealthCare.gov asks for the income you expect from your business after expenses. For drivers, the gross number in the app isn't that number. Business expenses, like the miles you drive for work, come off first.
That matters because your premium tax credit is based on that income. Put in the gross number and you get less help each month; the rest comes back when you file. Leave out a big month and you repay the extra at tax time. Ask your tax preparer what you can count; this isn't tax advice.
Driving full time or on the side? Send me your rough weekly earnings and where you drive. I'll show you your options side by side. Free, and no pitch at the end.
A made-up example
A 24-year-old delivers full time. The app shows $48,000 for the year. He also tracked the miles he drove for deliveries, and after those expenses his business income is closer to $33,000.
If he enters $48,000 on his Marketplace application, his tax credit is sized for $48,000. Entered correctly at about $33,000, he may qualify for more help each month. His tax preparer confirms the final numbers, and he updates his estimate if a big month changes the year.
Your income swings. Plan for it.
Drivers have slow weeks and huge weeks. If you're on a Marketplace plan, update your income estimate when your pace changes. If you end up well above your estimate, you may owe some of your credit back, and above 400% of the poverty level you'd owe all of it. My income goes up guide walks through it.
You work on the road, so check the network
Many Marketplace plans use local HMO or EPO networks. If you drive across county lines, between cities, or long distances, routine care away from home may not be covered. A PPO, which covers out-of-network care at a higher cost, can fit better. Check the network for where you drive, not just where you live.
The tax break to ask about
If you have a net profit and aren't eligible for an employer-subsidized plan, including through a spouse, you may be able to deduct your premiums with IRS Form 7206. It's one of the most-missed breaks for self-employed people. Your tax preparer can tell you if you qualify.
What I check with drivers
- Get your rough earnings and a realistic number after expenses.
- Check what that means for Marketplace savings.
- Ask a few general health questions to see if a private plan fits.
- Check networks where you drive.
- Compare monthly cost, deductible and out-of-pocket max side by side.
Where I land
As a driver, you're shopping as a self-employed person. Use your income after expenses on the Marketplace, keep the estimate current as your weeks change, and check the network where you drive. If you're healthy and earn too much for real help, compare a private plan too.
Driving full time or on the side? Send me your rough weekly earnings and where you drive. I'll show you your options side by side. Free, and no pitch at the end.
Questions I get
Do rideshare or delivery apps give drivers health insurance?+
Usually not. Most apps treat drivers as independent contractors, so there's no employer health plan. You buy your own, through the Marketplace or a private plan, or get it through a spouse's or another job.
What income do I put on a Marketplace application as a driver?+
HealthCare.gov says to include the income you expect from your business after expenses. For drivers, business expenses like mileage can lower that number, which can raise your premium tax credit. Ask your tax preparer what you can count. This isn't tax advice.
Can I deduct my health insurance as a driver?+
If you have a net profit and aren't eligible for an employer-subsidized plan, you may be able to take the self-employed health insurance deduction using IRS Form 7206. Check with your tax preparer.
What if I drive part time and have a W-2 job too?+
If that job offers health coverage, compare it first. If it doesn't, you shop like any self-employed person, using your combined income for the Marketplace.