Dr. Essex, Where do I turn to get the new health insurance through my own company? I have my partner and myself.
Congratulations on having your own small business. Since you have two people on the payroll, your company qualifies for small-group health insurance coverage. (Partners and employees working at least 30 hours per week count in that calculation, but independent contractors do not.) If the annual pay for you and your partner doesn't exceed $50,000 apiece for the next few years, you'll also likely qualify for the 35% tax credit for small business owners that provide medical benefits under the new health-care reform law.
Your first step is to find a reputable insurance broker. A good independent broker will meet with you, go over your needs and options, and present you with quotes from several insurance providers. He or she will also help you get signed up for the coverage you choose and will remain a resource for you as long as you keep that coverage.
Independent brokers are typically paid by insurance companies, so there should be no cost to you.
Cost will vary widely, based on the going rates in your region, how healthy you and your partner are, what kind of benefits you need, whether you want insurance just for yourselves or if you also want to cover spouses and children, and what kind of deductibles and co-payments you are willing to accept.
The ballpark figures for monthly coverage may range from $200 for a single adult to $1,500 and up for family coverage. It's all based on what you can afford and how much you'll use your plan. Generally, it's a buyer's market because small business owners know what they can and can't afford.
If either you or your partner has a pre-existing medical condition that has barred you from getting coverage in the past, starting this summer a national high-risk pool is to be created to let you buy coverage at reduced rates until 2014. It will then become illegal for insurers to turn down customers because they have medical conditions.
We suggest that clients contact their doctors and ask what health networks they participate in. That way, if the majority have doctors in one insurance network, that's the one we will go to first.
Another option you might explore is teaming up with a human resource organization that will handle not only your company's insurance coverage, but additional administrative tasks such as payroll and taxes. HR companies typically work with very small companies such as yours. The upside is they work on all of the HR, benefits and payroll chores, so your company can focus on what's important.
