Health Insurance for Sole Proprietors

I work from home (medical field) and will soon lose the Cobra insurance coverage my husband had with his company. Can I get insurance coverage if I have my own company and maybe 1 or 2 employees later?

Health Insurance for Sole Proprietors

Asked by Anonymous

I assume you’re wondering if you can get a deal on your health insurance if you’re a business owner.

Sadly, if you’re a sole proprietor, you probably won’t get much of a break unless you live in a state that defines a “small business” as having one or more employees—in which case you could apply for group health insurance, which is typically a cheaper option than individual coverage. However, most states define small businesses as having two or more employees. (Check your state’s regulations.)

In all likelihood, you’ll have to apply for individual health insurance, which runs the gamut from expensive to ridiculously expensive. That said, if you’re healthy and wealthy (can afford to pay for a lot of care out of pocket), you may be able to find a reasonably priced plan. A lot of small-business owners opt for a high-deductible health plan (HDHP) and pair it with a health savings account (HSA), a tax-advantaged savings account that can be used for health care expenses.

Since health insurance regulations vary by state, the first thing you’ll want to do is research your state’s laws. The National Association of Health Insurance Underwriters has a handy list of state-specific info, including definitions of ‘small business.’

Another good resource: your local chamber of commerce. You’re certainly not the only entreprenuer to face the health insurance issue. There’s no need to reinvent the wheel—tap into some local knowledge!

If you find out you have to get individual coverage, come back to InsureMe.com and fill out a quote request form. We’ll match you with local health insurance agents, who will provide quotes and vie for your business. While I can’t promise that you’ll find a “cheap” policy—I’m not sure one exists—you can be confident that you’ll find one at a competitive rate.

If you’re eligible for group health insurance, just Google ‘group health insurance’ and choose from the top listings. There are a lot of companies like InsureMe that specialize in matching people with group health providers.

Good luck!

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