Health Insurance Tax Deductions for Contractors in Broomfield, CO

Self-employed individuals in Broomfield can deduct 100% of health insurance premiums if not eligible for an employer-sponsored plan.
This deduction is "above-the-line," reducing your Adjusted Gross Income (AGI) and is not subject to the 7.5% AGI medical expense limit.
Premiums for medical, dental, and qualifying long-term care insurance, including those from Connect for Health Colorado, are generally deductible.
In 2026, 6 carriers offer marketplace plans in Broomfield's Rating Area 1, providing various options for contractors.

For independent contractors and self-employed individuals in Broomfield, navigating health insurance is a critical part of managing personal finances and business expenses. A significant advantage available to you is the ability to deduct health insurance premiums from your taxes. This deduction can substantially lower your taxable income, making healthcare more affordable. This guide explains who qualifies, what expenses are deductible, and how to find suitable plans in Broomfield, Colorado.

Get Your Free Health Insurance Quote

A licensed agent can compare coverage options for you at no cost.

✓

You're all set!

A licensed agent will reach out shortly.

Who Qualifies for the Self-Employed Health Insurance Deduction?

The Self-Employed Health Insurance Deduction allows eligible individuals to deduct 100% of their health insurance premiums. To qualify, you must meet specific criteria set by the IRS:

You must be self-employed: This includes sole proprietors, partners in a partnership, and S-corporation shareholders who own more than 2% of the company.
You cannot be eligible to participate in an employer-sponsored health plan: This is a crucial point. If you or your spouse are eligible for health insurance coverage through an employer, you cannot take this deduction, even if you choose not to enroll in the employer plan.
You must have net earnings from self-employment: The deduction cannot exceed your net earnings from the business under which the plan was established.

This deduction applies to premiums paid for medical, dental, and qualifying long-term care insurance for yourself, your spouse, and your dependents. It is an "above-the-line" deduction, meaning it reduces your Adjusted Gross Income (AGI) directly, providing a greater tax benefit than an itemized deduction.

What Health Insurance Expenses are Deductible?

The self-employed health insurance deduction covers a range of health-related insurance premiums. Specifically, you can deduct:

Medical Insurance Premiums: This includes plans purchased through Connect for Health Colorado, the state-based marketplace, as well as private individual plans bought directly from an insurer.
Dental Insurance Premiums: Standalone dental plans or the dental portion of a comprehensive health plan are deductible.
Qualifying Long-Term Care Insurance Premiums: The amount you can deduct for long-term care insurance is subject to age-based limits, which are adjusted annually by the IRS.
COBRA Premiums: If you are paying for COBRA continuation coverage after leaving a previous job, these premiums are also deductible if you meet the self-employment criteria.

It is important to note that this deduction is for insurance premiums only. Other medical expenses, such as deductibles, co-pays, or prescription costs, are generally not included in this specific deduction, though they may be deductible as itemized medical expenses if they exceed 7.5% of your AGI.

Finding Health Insurance Plans in Broomfield, Colorado

Broomfield, Colorado, is located in Rating Area 1, which also covers Adams, Arapahoe, Denver, Douglas, and Jefferson counties. This means that health insurance plans available to Broomfield residents are consistent across this multi-county region. In 2026, 6 carriers offer marketplace plans in Rating Area 1 through Connect for Health Colorado, providing a range of options for contractors seeking coverage. These carriers include:

Cigna
Denver Health Medical Plan
HMO Colorado
Kaiser Permanente
Select Health
United Healthcare

Connect for Health Colorado offers a variety of plan types, including Health Maintenance Organization (HMO), Exclusive Provider Organization (EPO), and Preferred Provider Organization (PPO) plans. Unlike some states, PPO plans are available on-exchange in Colorado, offered by carriers such as Denver Health Medical Plan and HMO Colorado, among others. This allows Broomfield contractors to choose a plan structure that best fits their needs, whether they prefer the lower costs of an HMO or the broader network flexibility of a PPO. Broomfield County, with a population of 76,304 and an uninsured rate of 4.4% per U.S. Census Bureau ACS 2024 5-year estimates, is served by local medical facilities such as Centura Health-st Anthony North Health Campus. The availability of multiple carriers and plan types helps ensure that contractors can find comprehensive coverage that aligns with their healthcare preferences and budget.

Understanding Subsidies and Plan Tiers

Even if you plan to deduct your premiums, understanding subsidies and plan tiers can help you choose the most cost-effective coverage.

Updated July 2026 · ColoradoPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Connect for Health Colorado offers financial assistance, known as subsidies, to eligible individuals and families based on income. These subsidies can significantly reduce your monthly premium costs, making health insurance more affordable upfront. If your income falls between 100% and 400% of the Federal Poverty Level (FPL), you may qualify for Premium Tax Credits. Additionally, individuals with incomes up to 250% FPL may qualify for Cost-Sharing Reductions (CSRs), which lower your out-of-pocket costs like deductibles, co-pays, and co-insurance.

Colorado expanded Medicaid (Health First Colorado) in 2014. Adults with income up to 138% FPL may qualify for Medicaid at little to no cost. Because Colorado has expanded Medicaid, there is no "coverage gap" for those below 100% FPL. Pregnant women with incomes up to 195% FPL may qualify for Child Health Plan Plus (CHP+), which also covers children in households up to 260% FPL. You can apply for these programs through Colorado PEAK (colorado.gov/PEAK).

Health insurance plans on the marketplace are categorized into metal tiers: Bronze, Silver, Gold, and Platinum. These tiers indicate the level of cost-sharing between you and your plan:

Metal Tier	Plan Pays	You Pay (Deductibles, Co-pays, Co-insurance)	Best For
Bronze	60%	40%	Healthy individuals with low anticipated medical needs, seeking lowest monthly premiums.
Silver	70%	30%	Individuals who qualify for Cost-Sharing Reductions, or those seeking a balance of premiums and out-of-pocket costs.
Gold	80%	20%	Individuals with moderate to high anticipated medical needs, willing to pay higher premiums for lower out-of-pocket costs.
Platinum	90%	10%	Individuals with very high anticipated medical needs, seeking the lowest possible out-of-pocket costs.

Choosing the right tier depends on your expected healthcare usage and financial situation. Even with the tax deduction, a plan with lower monthly premiums might have higher out-of-pocket costs when you use care.

Making the Best Decision for Your Health Coverage

As a contractor in Broomfield, you have several avenues to explore for health insurance. Your decision should consider your income, health needs, and eligibility for subsidies and tax deductions.

If your income is below 138% FPL: You may qualify for Health First Colorado (Medicaid), which offers comprehensive coverage at little to no cost.
If your income is between 100% and 400% FPL: You are likely eligible for Premium Tax Credits to lower your monthly premiums on plans through Connect for Health Colorado. Consider Silver plans if your income is below 250% FPL to maximize Cost-Sharing Reductions.
If your income is above 400% FPL: While you may not qualify for subsidies, you can still purchase plans through Connect for Health Colorado or directly from an insurer and take advantage of the self-employed health insurance deduction.

Understanding these options and how they interact with the tax deduction can be complex. Working with a licensed health insurance producer can simplify the process. An agent can help you compare plans from Cigna, Denver Health Medical Plan, HMO Colorado, Kaiser Permanente, Select Health, and United Healthcare, determine your subsidy eligibility, and ensure you understand the implications for your taxes, all at no cost to you.

Frequently Asked Questions

Can I deduct my health insurance premiums if I'm a contractor in Broomfield?

Yes, if you are self-employed and not eligible to participate in an employer-sponsored health plan, you can generally deduct 100% of your health insurance premiums, including those for long-term care insurance, from your gross income. This is known as the Self-Employed Health Insurance Deduction.

What types of health insurance plans qualify for the deduction?

Premiums for medical, dental, and qualifying long-term care insurance policies generally qualify. This includes plans purchased through Connect for Health Colorado, private individual plans, and COBRA continuation coverage.

What if I am eligible for an employer-sponsored plan through a spouse?

If you are eligible to participate in an employer-sponsored health plan, either through your own employment or through your spouse's, you cannot take the self-employed health insurance deduction. This rule applies even if you choose not to enroll in the employer plan.

How do I claim the self-employed health insurance deduction?

You claim the deduction on Schedule 1 (Form 1040), Additional Income and Adjustments to Income, line 17. It's an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) and is not subject to the 7.5% AGI limit that applies to other medical expense deductions.