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Choose the Right Health Care Coverage for Your Home Business

Where to Look and What Questions to Ask

Along with the duties associated with being a home business owner, comes the additional responsibility of selecting the best form of health insurance for both you and any employees that you might have. Although the process of wading through the world of insurance can be a daunting task, by knowing where to inquire about a policy and what questions to ask in relation to the options available, it's possible to purchase quality coverage at reasonable rates.

When deciding where to begin your search, consider the following possibilities.

• Many states now offer health insurance coverage to residents. A quick search of the internet will provide you with the specifics associated with any options that exist in your home state.
• Business group plans are becoming a popular option. Your local Chamber of Commerce would be a good place to ask about the existence of such plans. Although the costs for such group plans can become cheaper as more people enroll, the drawback of these plans is that the specific coverage guidelines have already been determined for you.
• If you belong to any specific business associations (e.g., the Nursery and Landscapers Association), you might be eligible to obtain health coverage through a plan that they offer.
• Inquire at the nearest branch of the Small Business Administration (SBA) for their input about any local options that exist.
• An insurance broker that's licensed to operate in your home state can be utilized to gather information on potential packages that offer the best deals based on your specific needs.
• Ask business associates for their input. Family and friends that are self-insured should also be able to provide some insight.
• Gather quotes online to make a quick comparison of the various programs that might be available to you.
• You might be eligible to purchase coverage as part of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985. Such an act allows those who have had insurance coverage through their past employers, as well as their surviving spouses, dependent children, and/or divorced/separated spouses, to purchase an extension plan that has a time limit associated with it.
• It's possible to create your own small business group health insurance plan for approximately two to fifty employees if you live within a state that offers such plans. The general requirement is that the employer must provide coverage to all of their "eligible" employees. It's usually up to you, the employer, as to what type of coverage will be provided, as well as how much you'll contribute to each person's premium and/or whether the employee will be required to contribute financially to their own policy. You might even qualify for certain tax breaks if you provide such coverage.
• You also might want to pursue the possibility of setting up Health Savings Accounts (HSA) for your employees. Such accounts allow money to be placed in tax-free accounts that are earmarked for health-related expenses.

To help refine your search, ask yourself and/or your employees the following questions.

• Do I need individual or family coverage?
• Do I want coverage for preventative/maintenance purposes, catastrophic injuries/emergency services, or a combination of the two?
• Do I need coverage for vision and/or dental purposes?
• Do I need maternity coverage?
• Do I want a high deductible with low premiums or vice versa?
• Do I want to pay more for a fee-for-service health care plan that allows me to select my health care providers?
• Would I rather pay less for a managed care plan, such as a health maintenance organization (HMO), preferred provider organization (PPO), individual practice association (IPA), or point of service (POS) plan that restricts the doctors and services that I can receive?

Whatever policies you're considering purchasing, you should compare information such as the number of providers within the system, the amount and types of complaints that were filed, the percentage of claims resolution, and the rate change history. You should also verify if coverage extends beyond the boundaries of your home state.

Although many insurance companies have ceased offering health care coverage policies, it's no excuse to not obtain such critical protection for you and/or your employees. Invest the time and energy necessary to familiarize yourself with such terms as co-insurance and maximum out-of-pocket expenses, as well as the variety of policies that exist. You'll appreciate your efforts in selecting or creating such coverage every time that you need to rely on its benefits…which hopefully will be seldom, if ever.

Good luck finding the perfect home business opportunity!

PS - We'd like to hear from you!
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