When Health Care Costs Rise, Does Business Ownership Make More Sense?

If you’ve been watching the news, you already know health insurance premiums are going up and fast. What used to cost a business maybe $200/month per employee (or even less) is increasingly edging toward $700 or more. And that’s before factoring in tighter coverage, higher deductibles, and policy cuts.

Many employers may decide their most viable cost-control move is trimming headcount, cutting benefits, or outsourcing roles, not because they want to, but because the math forces them to. That puts more professionals squarely at risk of losing their jobs or being told “we just can’t afford to carry you.”

So here’s where things shift: if you own your business, the dynamic changes. Health insurance becomes an expense you control, not one forced upon you by someone else’s budget constraints. And in many cases, health insurance premiums paid by a business owner are tax-deductible under current law. In fact, self-employed individuals often may deduct 100% of qualifying health insurance premiums for themselves, their spouses, and dependents, according to H&R Block.

That deduction is not a minor perk. It can reduce taxable income, even before you itemize, which in effect gives you a form of tax relief that an employee under a corporate plan rarely gets. 

But and this is a big but, it’s not automatic or guaranteed. To qualify, you generally must:

• Be truly self-employed and turn a profit

• Not have access to a subsidized health plan through a spouse’s or your own employer

• Establish the plan under the business or your name 

Even with those rules, the ability to deduct health insurance as a business expense gives at least one powerful financial lever that employees don’t usually have. That’s especially important when health care is no longer just a cost, it’s a potential burden that can sink your finances if mismanaged.

If you’re feeling squeezed by corporate layoffs, benefit cuts, or rising insurance premiums, this moment may be your signal to consider stepping into business ownership, not just as a dream, but as a practical move.

Take the first step today. DM me the word INFO, or book a free 15-minute Clarity Call with me. Let’s map whether launching your own business could give you both income control and an advantage in navigating rising health care costs.

Because when coverage hikes go up and employers cut back, having a business that lets you deduct those costs could make all the difference.