This is not a sexy post about marketing or product. But it is something I was hoping to share with anyone starting or looking to start a start-up (read here about Zero to Startup. We are a small team of 3 working on our new project and my mom kept bugging me to get health insurance for riding my motorcycle. I frankly never thought it was that important but if anything happens it makes sense to have some coverage. So without further ado, here are some tips on startup health insurance (or if you prefer small business health insurance).
Where do you start to begin or even understand health insurance for a start-up?
Good question? I emailed some friends and was recommended a “broker.” I don’t know about you but when I hear the word broker I automatically don’t like them cause they are a middleman adding more cost to something I want. However, in the health insurance field they don’t mark-up the plans at all. Sweet, so try to find a broker or if you need a recommendation please let me know.
Background on health insurance options:
HMO: This is Kaiser. More affordable but you have to wait. My brother is a resident there, say hi to Seth if you see him:)
PPO: Basically, you can go to any doctor in a network. A bit more pricey but you have more flexibility in who you get to see.
Vision: If you don’t have glasses/contacts I would recommend against this. As well, you can buy affordable contacts online for cheaper and just pay out of pocket for your check-up. The overall insurance cost for the year is greater than just out of pocket.
Dental: It is cheaper to NOT get this option and just pay for a cleanup when you need it. Unless you have bad teeth and need major surgery I would recommend against this. I would recommend brushing your teeth twice a day and using my fav, Tom’s Toothpaste:)
Catastrophic: A good option if you are Iron Man and/or in perfect health and just want to be covered if some crazy stuff goes down.
We ended up paying about $150 a month per person for health insurance. We have the company cover 50% (it is a tax write-off) and we each cover the rest.
Some of the other ways to find health insurance are to have your parents cover you if possible, go to the Blue Shield / Blue Cross websites or some entrepreneur should create a simple site for finding health insurance for individuals and/or small companies. If we were in Canada this would be so much more simple.
This is part of a Series on Startups: