Health Insurance For Independent Business Owners
Many people need several types of insurance. You may have automobile, life, or health insurance in place to ensure your prolonged security. Health insurance, in particular, is massively important but perhaps the hardest to obtain if it’s not provided to you.
For independent business owners and entrepreneurs, health insurance is something you have to find on your own. While employees of a company may receive it, the responsibility to find, research and buy health insurance is yours and yours alone. This is especially true for contractors and self-employed individuals.
Join us as we look at your options for quality health insurance.
4 Excellent Health Insurance Options For Business Owners
Health insurance is extremely complicated. While the Marketplace at Healthcare.gov has made coverage available to many people, it’s not without its flaws.
What makes things even more complicated, are the regulations that require you to offer health insurance if you have more than 50 full-time employees.
It can be difficult to know where to start, so let’s explore four different options you can look into today:
1. Private Health Exchange
This option is also known as a purchasing alliance. It gives you the option to shop for plans that cover the entirety of your employees. The pricing is based on the percentage you want to cover and comes down to a set price per employee.
In return, members of your company can pick and choose which plans they want through the private insurance provider. While this option doesn’t offer the same tax credits or the sheer selection of the marketplace, it does have very attractive prices.
2. Direct Purchasing
Another option is to purchase a group plan from a provider. This requires more legwork on your part, but it can save a lot of money in the long run. The important thing to remember with this route, is there are some risks involved.
For starters, some insurance agencies don’t sell directly to business owners. Also, the responsibilities will fall on you to handle the paperwork for billing, claims, and enrollment periods.
It can be a complicated process, especially as your company grows in size.
3. Solo Entrepreneur Options
If you are a freelancer or independent contractor, you’ll need to find individual health insurance plans. This option involves going to the Healthcare.gov website or directly to one of the insurers to purchase your plan.
During the enrollment period, you’ll find plenty of options based on your income and your needs. Keep in mind any ongoing conditions that you have or prescriptions that you and your dependents may need.
4. Small Business Health Options Programs (SHOP)
This program is included in the Affordable Care Act. Every state has its own marketplace where you can search for options. You can have up to 50 employees, or 100 if you are based in Virginia.
If you meet these requirements, you can search through plans on the SHOP marketplace. Once you’ve chosen a plan, the expenses will remain the same as you move forward. You can even qualify for tax breaks as well. This is an excellent option if you have 25 or fewer employees.
Final Thoughts
The importance of health insurance cannot be discounted. If you’re a small business owner or an independent contractor, there are plenty of options at your disposal. The best approach, is to look for a combination of quality and value that suits both your needs and the needs of your employees.
How do you find health insurance policies for your small business? Let us know in the comments!
