Small Business

Small Business and 1099 Contractors – Do I Qualify for Small Business Coverage?

Updated on November 29, 2019


Do you qualify for small business health insurance if you only had 1099 employees or contractors?

If you’ve had employees or contractors that you paid by using IRS Form 1099 within the past year, you may qualify for a small business health insurance plan in some cases.

Generally speaking, you need three things in order to qualify:

First, you need to show that you have employees. It is possible that people you pay with IRS Form 1099 on a contract basis could still be considered employees in some states for the purpose of small business health insurance plans.

Second, you typically need to have at least one employee on regular payroll. This may include yourself.
Third, at least half of your eligible employees will need to enroll in the new small group health insurance plan in most cases.

Eligible employees are generally payroll employees who do not already have coverage through another source.

Remember, the rules governing who qualifies for small business health insurance may differ from one state to another and from one insurance company to another. Whether you’re eligible will depend on your specific circumstances.

To learn more about your small business health insurance options today, visit

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