For people who are self-employed and choose to structure their business operations as sole proprietorships, the need to secure the best possible sole proprietorship health insurance is very important. Depending on where the business owner resides, there may be more than one option for obtaining quality healthcare coverage, including participation in some sort of group health insurance plan. Finding the right health insurance involves understanding insurance regulations in the jurisdiction where the business is based and the policies and procedures of the insurance providers who are licensed to operate in that jurisdiction.
One of the first issues to explore when searching for the right sole proprietorship health insurance is which rules apply for group coverage in your area. In some cases, providers will define group insurance as requiring two or more participants in order to lock in a competitive group rate. Other areas define a group as one or more participants as long as the business is a legally recognized entity. This means that if you are a sole proprietorship and have all the necessary documentation to prove the status, you may be able to obtain group rates, even if you are the only employee of the business.
When group insurance requires two or more participants, your best options for sole proprietorship health insurance is to look at various offerings of individual or self-employment insurance. Typically, the rates for these types of health insurance policies are higher than the rates offered for group plans. In addition, the scope of benefits may or may not be equal to group plans in your area. For example, an individual plan may come with a limit on pre-existing conditions, while group plans may not have any such restrictions. If and individual plan is your main option, go for plans that offer the best in terms of co-pays on medication, dental and eye care riders, and co-pays on routine doctor appointments.
A third alternative to consider with sole proprietorship health insurance is to look into securing coverage through a professional association. Some business associations secure plans with reputable carriers that allow the self-employed and sole proprietorships to participate at group rates under the umbrella of the associations. When available, this approach can mean a wider range of benefits for a lower monthly premium, something that will help your overall business costs within reason.
Keep in mind that the goal is to secure the best possible sole proprietorship health insurance plan possible while still keeping the premiums affordable. If you are just starting your business, this may mean going with higher deductibles at first, until your revenue stream increases. Talk with providers before signing with any health insurance plan and find out what is entailed with upgrading your coverage when and as you can afford higher premiums. Some companies only allow this type of activity to occur during a limited time each year, while others are happy to process the changes at any time.
