How to Buy Individual Health Insurance for a Business
Small businesses do have choices for health insurance. Costs can be reduced by joining a discount plan, selecting a higher deductible rate, opting out of certain coverage options or establishing a medical savings account for their employees. And for small business owners who purchase their own insurance and file as an S Corporation, they can deduct up to 70 percent of their qualified medical expenses from their personal federal income taxes.
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Instructions
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Ask other business owners where they purchase their health insurance. Look for business owners who have the same number of employees, so that the premiums will be more accurately reflected. Ask how long they've held the policy as well---some insurance companies are changing their products after the passage of the health care bill in 2010, and may not extend plans to new accounts.
If you use an accountant or CPA, ask them about their small-business clients' health insurance plans. While they will not divulge specifics, they can tell you which plans and providers their clients have chosen.
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Call your personal homeowner's insurance and life insurance company. Ask if they offer health insurance plans for small businesses. If they do, ask them to mail you their literature and a schedule of deductibles and premiums. If they do not, ask them to recommend companies that do offer health insurance for small businesses.
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Consider establishing a health savings account for your employees. A health savings account or medical savings account can usually be opened if a small business owner carries personal catastrophic health insurance coverage (this type of coverage does not cover routine visits and typically carries a high deductible). With a health savings account, you and your employees can contribute on a monthly basis and use the savings for routine doctor's office visits, prescriptions, and so on. The Internal Revenue Service allows health savings account members to write off qualified medical expenses.
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Compare plans. As an alternative to a health savings or medical savings account, look for insurance plans that carry high deductibles as a way to save money. You can also opt out of office visit coverage to save money on health insurance and receive a discount for paying the year's premiums in one lump sum.
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