About Health Insurance for Family Members of Small Business
Operating and owning a small business means you take on additional responsibility. Not only are you responsible for the day-to-day operations of the business, you take on the role of human resources director as well. Retirement planning and health insurance are two examples of things that may be difficult to provide for your family when you first open a small business.
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Importance of Health Insurance
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Health insurance is your protection against medical bankruptcy. Medical emergencies such as appendectomy can cost tens of thousands of dollars. It is important to insure your family and yourself. There are plans designed for small businesses that allow you to offer insurance to your employees as well. You are more likely to retain your employees if you offer good benefits to them. You can also deduct the cost of the premium costs for yourself and your employees.
High Deductible Plan Options
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One option is to choose a high-deductible insurance plan instead of a traditional plan. This plan generally costs less money than a traditional insurance plan. The deductible is at least $1,000, but once it is met coverage kicks in and covers all remaining medical costs. You can set up a health savings account (HSA) for each employee and contribute to help cover the cost of the deductible as well. This plan may be the most cost-effective, and it can be set up to cover family members---including your own.
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Finding Health Insurance
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Talk to an independent health insurance agent in your area or speak to representatives from several different companies to get a quote and compare plans. When choosing a plan you want to get the most coverage you can at an amount you can afford. Check the maximum coverage amounts before choosing a policy, and ensure that participants are able to purchase coverage for family members. After finding a plan, shop around for rates every few years to save money on the challenges. As your company grows your needs will change, which is another reason to continue to shop around.
Options for the Self-Employed
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If your business has not expanded to multiple employees, you still have health insurance options for your family. Your options include individual health insurance plans. You can choose between traditional or high-deductible plan with a health savings account as well. Another option is to find out if you qualify for a plan through your spouse's employer, or through an organization such as an industry association or local chamber of commerce or small-business federation. Individual health insurance plans are also tax-deductible. You can learn more about specific plans available in your state at the federal government's healthcare.gov site.
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