Health Insurance Tips for Self-employed Business Owners

Those whose jobs include health insurance benefits have it easy. The company that employs them pays a portion of their premiums. But what if you’re your own boss, if you’re not working for someone else? If you are one of those courageous self-employed individuals, or you’re planning on starting your own business either now or after retirement, this article will give you useful tips on how you can enjoy affordable self-employed health insurance even after quitting your current job.

Hold on to your earlier plan under COBRA
The best option for continuing to enjoy your employer-sponsored health insurance for some time even after leaving your job is through COBRA – the Consolidated Omnibus Budget Reconciliation Act of 1986.

COBRA allows people to extend their current health insurance coverage at permissible group rates for 18 months maximum after leaving their jobs, provided that their former company has 20 or more employees and they weren’t fired from their jobs for incompetence or gross negligence. More information on COBRA coverage can be obtained from the U.S. Department of Labor.

The down side to this plan is that as a self-employed individual, you will have to bear the entire cost of the insurance coverage. This will be a lot higher than what you might have been paying as a company employee. The Kaiser Family Foundation states that employees usually pay just 28% of their health insurance costs.

Decrease your premium cost in advance
This will require planning ahead of time. Before leaving your job, try and join the most economical health insurance plan made available by your company during the period of open enrollment that is closest to your quitting date. This will ensure a lower insurance premium to be paid later under COBRA.

Act before the time limit expires
Your COBRA eligibility ends after 180 days, and the law guarantees you the benefit of health insurance provided that you seek coverage under a brand new policy within a span of 63 days after that. Otherwise, your insurance application could most probably be rejected or any new policy you purchase might not allow coverage for a pre-existing health condition for up to one year.

Tie the knot
You might have heard that if you’re planning on self-employment, it would be an advantage to marry someone with a steady job. Another benefit would be cheaper health insurance, for it’s quite possible that joining your husband’s or wife’s health insurance plan will be less costly than other possible options, including COBRA.

Join an employers association
Once your business grows, you may start hiring employees. That is when you could save some money by getting affordable health insurance for your business by joining a business or professional employers association that offers group health insurance and several other benefits to small businesses.

Compare different health insurance quotes
Finally, before deciding on which self-employed health insurance plan to buy, do the research. Get quote comparisons either though agents or the internet. An online search could even provide information regarding the financial health of the different insurance companies.