Self-employed health insurance in Michigan: a practical guide for 2026

Sam Jaber, Licensed Health Insurance Advisor · Updated September 2026

Michiganders who work for themselves buy health coverage on HealthCare.gov, the federal marketplace. The realistic options are a marketplace plan with a federal premium credit, the Healthy Michigan Plan when income is low, a marketplace plan at full price, or a bridge while you get settled, such as keeping a former employer's plan.

Michigan's expanded Medicaid gives a lean year a real fallback, and its marketplace insurers all plan to stay for 2027. Prices still rose sharply for 2026. Below is how each option works here and how to choose.

The starting point for self-employed Michiganders

Leaving a payroll job means taking on two things your employer used to handle: paying the whole premium, and dealing with an income that changes from month to month. The income matters most, because the figure you project for the year decides whether you get Medicaid, a federal credit or neither.

Michigan does not run its own exchange, so you enroll through HealthCare.gov. The state's Department of Insurance and Financial Services, known as DIFS, publishes consumer guidance and reminders during enrollment season. For 2026 coverage, open enrollment ran from November 1, 2025 to January 15, 2026, and selecting a plan by December 15 meant coverage starting January 1.

Seven insurers, and all of them staying

Seven private insurers sell plans on Michigan's marketplace for 2026, and all of them were reported to be continuing into 2027. For a self-employed buyer, that stability matters. It lowers the odds that your plan's company disappears at the end of the year and forces a switch in the middle of treatment.

A company staying is not the same as a plan staying the same. An insurer can remain in the market while changing a plan's network, drug list or price, so read the renewal notice you receive each fall instead of assuming nothing moved.

Seven insurers statewide does not mean seven options in your county. Coverage areas vary from one part of the state to another. Put in your zip code and compare the plans that actually serve you, starting with whether your doctors are in network.

Option one: a HealthCare.gov plan with a premium credit

If your income sits within the federal subsidy range, this option usually does the most for your budget. The premium tax credit is based on your household, your projected income and the cost of plans near you. You can have it applied every month so your bill drops right away, or take it when you file.

The monthly version is settled against your real income on your tax return. If the business had a better year than you told HealthCare.gov, some of that credit may have to be paid back. The enhanced federal credits that softened this for several years ended after 2025, and help now stops sharply at an income limit again. Before you settle on an estimate, look at how the subsidy cliff catches self-employed earners.

A marketplace plan also brings protections that are hard to find elsewhere. It cannot refuse you or charge more because of a condition, and it covers a standard set of essential benefits.

Option two: the Healthy Michigan Plan

Michigan expanded Medicaid through the Healthy Michigan Plan, effective 2014. Adults can qualify with income up to 138% of the federal poverty level. A startup year, a slow season or a year of heavy spending on the business can put a self-employed household in that range. If yours might be close, check eligibility before you buy a plan, and ask how your self-employment income is counted. If your business picks up during the year, report the change promptly so you can move to marketplace coverage without a gap.

Nationally, a federal work requirement for the Medicaid expansion population is broadly slated to begin January 1, 2027. We did not find Michigan-specific details on how it will be applied, so if you are enrolled or expect to be, confirm the current rules with Michigan's Medicaid program and ask how self-employed hours should be recorded.

Option three: paying full price

Earn above the federal subsidy range and you can still buy any marketplace plan. You pay the entire premium, and you keep the guaranteed acceptance and standard benefits.

This group took the full force of the 2026 increase described below, with no credit to soften it. With seven insurers in the market, it pays to compare widely: look at bronze, silver and gold, and weigh the deductible and out-of-pocket maximum alongside the premium. Our look at what coverage costs for the self-employed can help you judge whether a quote is reasonable.

Option four: bridges while you settle in

Keeping a former employer's plan. If your old employer had 20 or more workers, federal COBRA usually lets you keep the group plan for a time. If the employer was smaller, ask the employer or insurer directly what continuation, if any, is available to you. Either way, you will pay the full group premium, so compare it against a marketplace plan using our side-by-side math on COBRA and its alternatives.

Short-term plans. Michigan's DIFS publishes its own guidance on short-term limited-duration plans, and it is worth reading before you buy one, since the rules on how long these plans can last have been changing nationally. Confirm the term and whether it can be extended, in writing.

Underwritten coverage. Other plans outside the marketplace ask health questions and can decline you, exclude a condition or charge more. They do not follow marketplace benefit rules, so read the coverage closely. Start with our plain explanation of medical underwriting.

What 2026 did to Michigan prices

The benchmark plan, meaning the second-lowest-cost silver plan in an area, is the plan federal credits are measured against. For a 40-year-old in Michigan, the average benchmark premium was $523 a month in 2026, up from $404 a month in 2025. That is an increase of about 29.5%.

For subsidized households, the credit generally grows when the benchmark rises, so much of that increase is absorbed. For households above the subsidy range, the increase comes straight out of the budget. If you paid full price in 2025 and let the plan renew, your 2026 bill may have looked very different.

These are 2026 statewide averages for one age. Your own price depends on your age, location, household and income. Rates for 2027 are approved separately, so look at the new figures each fall.

A simple way to decide in Michigan

Estimate where your income will land, then use the table as a starting point.

• Use a grounded income estimate, and report changes during the year.
• Search by zip code, since coverage areas differ across the state.
• Put doctors and prescriptions first, then compare price among plans that include them.
• Talk to a tax preparer about the federal self-employed health insurance deduction and how it affects your returns.

If it helps to have someone lay the options out with your real numbers, a licensed advisor can do that without asking health questions first.

Common questions