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3 Creative Health Insurance Plans for Small Businesses

Christine O'Kelly
Nov 13, 2007
Owning a small business or pursuing your entrepreneurial dreams is full of benefits. However, the one issue that small businesses, freelancers, and entrepreneurs often struggle with is health insurance. Here are some facts about Americans who lack health insurance:

- 3.5 million uninsured people work full time and earn over $75,000 a year
- 60% of people without health insurance are people that have full time jobs
- 18% feel of people say they don't have health insurance because they feel they are "invincible"
- Those that don't feel invincible worry that a medical emergency could destroy their financial future.

After trying a quote or two online and becoming disheartened by the cost of individual health insurance plans, many small business owners and entrepreneurs manage their health care by "hoping" that they won't get sick. While hoping for good health may help for a while, it's not a permanent solution and one that is constantly weighing on the mind of the uninsured.

However, there are more options for individual and small business group health care than many people realize. In this article, we'll discuss three creative health insurance plans for the small business owner:

Group Plans

Many people don't realize this, but a business run by a solo entrepreneur can quality for a group health plan in many states! The advantage of a group health care plan is that it is often more affordable than an individual plan. When your business offers a group health care plan it's an attractive incentive for employees to join your company so that you can attract top talent and grow your business as needed. In some states it is even possible to cover contracted 1099 employees with a group health care plan.

Health Care Spending Accounts (HSA's)

Many people have never heard of a Health Care Spending Account. Those who have heard of HSA's are often under the impression that Health Care Spending Accounts are only an option for wealthy and healthy- but this is not the case!

A Healthcare Spending Account provides a tax free place to keep money that will be used for qualified medical expenses for you and your family. By making voluntary, tax free contributions to your HSA, you have money on hand to pay for medical expenditures that is tax-free upon withdrawal. Because of tax savings, you are likely pay less with an HSA than with a traditional individual health care plan.

Benefits Carving

In some states, you can 'carve out' benefits from a standard health care package as a way to lower monthly premiums. There may be feature of a standard health care package that you don't need and therefore may not need to pay a premium for. For example, you may want to build a plan that allows you 2 doctor visits per year for a low co-pay and agree to pay the full amount for any visits beyond your allotted amount. Any number of creative mix and match options are available to arrive at a premium that is right for you.

Affordable Health Care is a Reality with a Creative Plan

Health insurance agents who understand health care plans inside and out can help you find a plan that meets your needs and price range. By getting quotes yourself online, you may be missing out on ways to cut down costs.
About the Author
Christine O'Kelly is an author for IBD Insurance Services, an authorized agency for BCBSNC. The company is passionate about its goal to provide individuals and businesses with the most options for affordable health care in NC.
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