Insurance

4 Health Insurance Musts for Entrepreneurs

For many Americans, the freedom associated with running their own business or working independently as a consultant or freelancer can be very appealing. But with that freedom and independence also comes a lot of responsibility, and not just the day-to-day operations and accounting processes necessary to keep the business afloat. There are also things like health insurance to consider.

“Buying health insurance — whether just for yourself or for your employees too — is one of the most important decisions you’ll face all year,” said Jennifer Fitzgerald, CEO of PolicyGenius, an insurance industry consulting firm.

Here are some questions to keep in mind while looking for coverage:

  1. What Kind of Health Coverage Suits Your Needs?

If you’re shopping for yourself, as a sole proprietor, consultant or freelancer, for example, Fitzgerald said it’s important to understand what type of healthcare consumer you are.

“If you’re a high-use consumer (e.g., you have health conditions or otherwise frequently use medical services), consider plans with lower deductibles and out-of-pocket costs,” Fitzgerald recommended.

If the premiums for health insurance seem too high, remember that the costs of paying for health care out of pocket can be significantly higher, even financially devastating. Yes, you could potentially find credit card deals that would help you pay for some of the costs without racking up significant interest on your debt or going into collections, but leaving it to chance that you’ll remain healthy and not have any accidents is incredibly risky. Remember, medical debt can end up impacting your credit score as well, and that can hurt your business.

  1. Are You Eligible for Tax Credits?

“Millions of shoppers are eligible for tax credits but don’t take advantage of them to reduce their health insurance cost,” Fitzgerald said. Sitting down with your financial advisor or accountant could be very beneficial, as would a call to the Internal Revenue Service’s Taxpayer Advocate’s office.

  1. What Kind of Coverage Do Your Employees Need?

If your employees are young and single, their insurance needs are going to be different than if they are parents with small children or older and in need of more health care services.

Fitzgerald advised that taking that into account is critical to determining what types of plans and level of benefits to provide.

“Also, be aware of what similar companies in your market offer since you’re competing for talent and benefits are an important part of that equation,” she said. “Finally, get familiar with tax credits available to small businesses, which can help defray the cost of health insurance for your employees.”

  1. Talk to an Insurance Broker

If the idea of entering the Affordable Care Act marketplace concerns you, there’s still the option of buying coverage outside the system. Finding a reputable insurance broker who can walk you through your available options based upon your specific needs is important.

According to ObamaCareFacts.com, “You can use a private health insurance broker to help you enroll in a marketplace plan and you can also go direct to an insurer for assistance. You can also enroll in a plan not offered on the marketplace through some brokers and insurers. This means shoppers have options, but also complexities to consider.”

Of course, the same individual health care considerations apply equally whether you go through the ACA marketplace or choose a private option. Seeking guidance in both cases is wise.

Constance is an editor and writer at Https://www.Credit.com. Prior to joining us, she worked as an editor for MSN.com, senior digital producer for CNBC, and digital producer for NBC Nightly News. She also is a graduate of the International Culinary Center in New York, has worked for chefs such as April Bloomfield and Jean Georges Vongerichten, and is the founder of Crave Personal Chef Services in Austin, Texas.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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