If you are self employed and need medical care insurance coverage, you probably have several options and it may be difficult to determine which option is best. You may have the option of keeping your COBRA coverage from your most recent employer, you may be able to get coverage through your spouse’s job, you may be able to get medical care coverage on your own as an individual and you may have the option of buying health care insurance through your business.

The biggest mistake you can make is to make the asumption that all of the choices are equal. Many assume that they cost about the same and have about the same benefits. Often a newly self-employed person will accept their COBRA option or the choices offered through their spouse’s place of business and never shop around to see if they could get a better health care plan elsewhere. This is understandable. It is hard to start a business and taking the easy way out regarding your medical care coverage allows one to devote more time to other business-related decisions.

As understandable as this is, it is a mistake because it can be very costly. The most expensive choice available that will cover you well will more than likely cost twice as much as the least expensive alternative.

Each option listed above has its pros and cons. For this reason, the best choice for you may not be the best alternative for someone else.

Accepting the COBRA choice from a previous place of employment has the advantage of allowing you to stay with your present policy. It also requires the least amount of thought and no health questions.

There are, however, two major drawbacks. The first is that the policy is temporary. This means that when your COBRA eligibility ends, you will need to find another answer. If you have an accident or contract an illness between now and then your options for other medical insurance plans may not be as good as they are today. The second drawback is the likelihood that this alternative is one of the more pricey choices.

Another choice you may have is to get your health insurance through your spouse’s employer sponsored health care policy. This can be a good choice. However, many employers are now only subsidizing the cost of their employees’ medical care insurance and not the cost of their employees’ dependents insurance. This can result in a higher cost than you might get from one of the other options.

Another problem with purchasing coverage through your place of employment’s plan is that your insurance will end when your spouse’s employment does. It can also end if his or her employer sponsored health care policy decides to stop offering medical insurance coverage to its employees.

Buying coverage through your business is another alternative. However, do not expect a group insurance discount. Group insurance costs more than the typical policy you can sign up for on your own. The reason for this is that group insurance plans typically have to take all comers. This forces the insurance company to charge more for these contracts than a policy you can purchase on your own.

The best choice for most people who have one-person businesses is to get a medical insurance policy as an individual or as part of a family plan. If you have medical issues that prevent your purchasing a policy on your own, one of the other options will probably be better for you. However if you are in good health care, you will more than likely be much better off with a policy you get as an individual.

Author Bio: The author, Alston Balkcom, has an insurance agency in Connecticut and focuses on CT health insurance and CT life insurance

Category: Finances
Keywords: health insurance,insurance coverage,business owner