If you decide to go into business for yourself, one of the biggest expenses you'll face is health insurance. The cost is such that many a would-be entrepreneur have decided self-employment is too risky a proposition. Others who are already small business owners are forced to accept that health insurance is not a benefit they can afford to offer their employees. The U.S. Chamber of Commerce found that of the more than 45 million uninsured Americans, approximately 60% are employed by small businesses.
When I first started my freelance business, I was paying about $150/month for health insurance. By the time I got married and went on my husband's health insurance policy, I was paying more than $400/month. It seemed I was constantly shopping for less expensive health insurance options. And, trust me, it's not a fun chore. It's almost impossible to do side-by-side comparisons. At first, I opted for plans with higher and higher deductibles. Eventually, I joined the National Association for the Self Employed (NASE), which uses the buying power of its members to offer decent coverage at an affordable rate. Even then, I opted for catastrophic coverage only.
About.com has a couple of suggestions for ways to reduce health care costs. Ideas range from keeping your employees healthy to offering a health savings account. I also suggest you check out NASE. If you're in a business with an established trade organization, check out the benefits they may offer. Another good option may be your local chamber of commerce, or talk to other entrepreneurs and ask what they're doing to keep their healthcare costs down.
As a closing thought, I found a Web site called healthinsuranceinfo.net that offers a consumer guide for every state about getting and keeping health insurance. The guides were written by the Georgetown University Health Police Institute. They are downloadable and offer valuable information about your rights and protections.
Good luck!
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Erin,
ReplyDeleteI appreciate the difficulties that it must create on a person who is an entrepreneur to deal with issues such as health care nowadays. You presented a lot of good information for someone in the same position that is having to jump through several hoops with medical coverage, when they only have certain options. I enjoyed reading your blog. Rachel Lewinsky
Erin,
ReplyDeleteI appreciate the difficulties that someone in an entrepreneur position must go through with health insurance nowadays. I believe that anyone who has to go through the same situation could truly benefit from the information that you provided. I enjoyed your blog.
Those of us who have not endeavored in starting a small business, may not be aware that health insurance is a major obstacle. Possibly, this issue will be addressed with the upcoming health care reform. Enlightening post!
ReplyDeleteI never really thought about the health insurance aspect of being an entrepreneur, and how expensive it really can get!!
ReplyDeleteYour blog shed some good light on that topic, very interesting post with lots of really good information.