Small Business Health Insurance

Susan asks…

What do I need to look for when researching small business health insurance plans?

I am researching health insurance plans for my company of 4 employees. However, I am not too sure what to look for. How can I make sure that I get the most beneficial plan?

admin answers:

You should request information from all the major health care providers in your area. Make sure you ask for price sheets that compare all of their plans. Once you have them you can compare all the companies. The best rate will probably be an HMO, but look into others as well. Also ask your employees what they want in health care coverage, or what plans they had with other employers.

Sandra asks…

What does anyone know about small business health insurance? How expensive is it?

any othe info, like websites, books, ect, that could be helpful to start my own business would be apperciated.

admin answers:

There are too many variables to answer how much the insurance would cost, such as how many employees, their gender and ages, current health status, whether their families will be covered, and what the business is. If it is just you and/or your immediate family you would need an individual policy. Many companies will write group policies for as few as two employees but I recommend a group policy only for groups of 10 or more. The reason being; if someone in your group becomes ill and needs a very expensive medical procedure your group rates can go up dramatically (300%-400%). With individual policies that doesn’t happen.

Your best bet would be to contact a local independent agent who can match you up with a company that provides the most benefits for a reasonable premium. The insurance cost the same going through an agent as it does doing it yourself, so use their expertise. If you can’t find a local agent go to this website: – type in your zip code and fill out the form and expect several agents to call you.

One word of caution. Stay away from the policies that advertise “affordable group rates” for the self-employed. There is too much dirt on these companies to go into here.

James asks…

what are the advantages of cobra insurance versus individual or small business health insurance?

admin answers:

Well, COBRA will most likely cover maternity. Individual plans won’t.

And, individual and small business plans are individually underwritten, so the company can say, “oh, you have XYZ wrong with you, we’ll take you, but we won’t cover anything related to XYZ”. Or worse, “sorry, we won’t insure people with XYZ”. Cobra won’t do that.

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