Forums: Discussions for entrepreneurs and small business.

I am preparing to get health insurance coverage through our company. We have considered services offered through NASE (National Association for the Self Employed) and were wondering if anyone could offer any advice about the best way to obtain health insurance through our company. Can you share any suggestions based on your experiences or the experiences of your colleagues? My accountant suggested that it was a good idea to get the insurance through our company since it will serve as a line of credit as well.

I didn`t get the part that "it will serve as a line of credit as well".

In any case, check Costco. They offer health insurance for both individuals and small businesses.

I am preparing to get health insurance coverage through our company. Has anyone considered services offered in connection with NASE (National Association for the Self Employed) or NFIB (National Federation of Independent Business)? Can anyone share their personal experience with ehealthinsurance.com or any other companies? Can you share any suggestions based on your experiences or that of your colleagues?  We need to make a decision in the near future. Thanks in advance for your help.

When considering health insurance, you need to decide if you`ll do better to buy individual health insurance for yourself and your family, or get a small group health insurance plan. I researched buying health insurance extensively and distilled my research into the book "Get a Good Deal on Your Health Insurance Without Getting Ripped-Off" and website www.BestHealthInsuranceBook.com.

Group plans for small businesses tend to offer guaranteed coverage for those with a significant medical condition. Individual plans will medically underwrite each person and determine if coverage will be offered and at what rate. There are tax implications to both types of plans if you throw the Health Savings Account (HSA) coupled with a High Deductible Health Plan (HDHP) into the mix.

Your accountant may be advising based on the deductibility of premiums, but this tax advantage should not be your primary concern. Getting the right health insurance for you and your family should be at the top, and comparing the tax advantages should be secondary. Plus, if you`re healthy, then a group plan for your company is likely to cost more than individual plans. It may be a significant enough difference that even with tax savings, the small company group plan might cost more.

Down the road, you may want to consider a small business plan as a perk to attract employees. I wouldn`t necessarily start at Costco, either. Find an independent health insurance agent if you can, preferrably one that is a member of NAHU or NAIFA (check my website resources section for the latest links to find agents). You may find that your realtor, chamber of commerce, friends, or network may have an independent health insurance agent that you can start your search with.
-Jonathan



-------------------------

Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com

We looked into getting a group policy through Blue Cross Blue Shield, but ended up getting a personal policy through Humana (there are only two of us). Because a group policy basically allows anybody in (any employee), it is very expensive. Going the personal policy route is much more cost affective for us right now.

When considering health insurance, you need to decide if you`ll do better to buy individual health insurance for yourself and your family, or get a small group health insurance plan. I researched buying health insurance extensively and distilled my research into the book "Get a Good Deal on Your Health Insurance Without Getting Ripped-Off" and website www.BestHealthInsuranceBook.com.

Group plans for small businesses tend to offer guaranteed coverage for those with a significant medical condition. Individual plans will medically underwrite each person and determine if coverage will be offered and at what rate. There are tax implications to both types of plans if you throw the Health Savings Account (HSA) coupled with a High Deductible Health Plan (HDHP) into the mix.

Your accountant may be advising based on the deductibility of premiums, but this tax advantage should not be your primary concern. Getting the right health insurance for you and your family should be at the top, and comparing the tax advantages should be secondary. Plus, if you`re healthy, then a group plan for your company is likely to cost more than individual plans. It may be a significant enough difference that even with tax savings, the small company group plan might cost more.

Down the road, you may want to consider a small business plan as a perk to attract employees.Find an independent health insurance agent if you can, preferrably one that is a member of NAHU or NAIFA (check my website resources section for the latest links to find a health insurance agent). You may find that your realtor, chamber of commerce, friends, or network may have an independent health insurance agent that you can start your search with.
-Jonathan

-------------------------

Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com

I think it is a myth that you get a better rate through an association. Before I spent time to research the book, I had bought into another myth: that group insurance from an employer was cheaper (it is the other way around if you don`t have serious medical problems).

I don`t think that there is anything such as discounted coverage in health insurance. There are 4 typical types of coverage: employer-employee, individual policy, association group sold to individuals (not the same as employer group), and small business insurance for your small business. There are also a few fringe types, and any professional (i.e. law) associations that you belong to would tell you which. Each type has it`s own pro`s and con`s, and work well for different situations.

You`ll get a rate that depends on your health status and/or the laws of your state. In states that have community rating you get the same rate regardless of your health status. In states without, your health will determine the rate.

Get quotes from the health insurers licensed in your state. You`ll see that the difference in rate is determined largely by your deductible.

Check out the quality of the insurer by reading news archives. My local library offers web based newspaper and magazine searches that let me look up information in articles about the insurers.

What worked best for me was to find an independent agent that represents a number of companies. You may need more than one agent if the one you find doesn`t represent all of the companies in which you are interested. I`ve got a 12 step process in the book, and I`m working on an article that sums up the 12 step process.


-------------------------

Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com

I second this approach as it is what I`ve done for years. The agent, if he/she is good, will review your account yearly and, if costs rise in your existing plan but there are other plans available for cheaper, expect a call. If you don`t get a call, then you need to call them. If you then find that there were cheaper rates available and your agent did not notify you, find another agent.