Home based business health insurance is always a hot topic on the internet forums related to the subject. Health insurance companies do cherry pick applicants on individual plans, and the rates are expensive. Some people are just skipping a medical plan, but this is a risky choice. An illness or injury could bankrupt your new company and your family. Look into your options, and then take a deep breath and choose one!
Let me mention that the type of small business medical plan you choose may depend upon the state you live in too. Health insurance is regulated at the state level, so plans will differ. However this general overview should give you a good starting point for your search. Of course, an experienced local agent is an invaluable resource. Try to find an independent professional who will work to give you the best options for your own needs, and not just try to sell you on the particular company he or she represents.
Association medical plans may be available for your business or location. Now I have seen these referred to as group plans in some articles, but in my state, they are different. As I said before, state rules vary. However, a large association may have strong buying power to negotiate rates, keep premiums from raising to quickly, and obtain better benefits. Your trade group, Chamber of Commerce, or business association may have a plan. If nothing comes to mind, go search the internet for business groups with health insurance.
Group medical plans are available to small businesses with a few employees. However very small plans are considered risky by insurers because there are so few people to spread the risk between. One unhealthy employee out of three can really impact everybody’s rates. Of course, group health insurance plans are very attractive to employees, so if you want to attract and retain high quality people this is a great benefit to consider. If you can afford a group health plan, and if you plan to expand your business, you should look at this option.
Of course, the most common option these days are probably individual plans. If you are healthy, then private or family medical coverage is probably the simplest option. If you, or somebody in your family is unhealthy, you may have to research high risk options in your state. Keep in mind though, that even if your state has rules about guaranteed issue, that still means you will have to pay a substantial premium.