Guide to Affordable Health Insurance for Small Business Owners/Employees

According to a recent article in Business Week, there are currently 16.8 million Americans who are uninsured because their employers cannot afford to provide them with coverage. This number is expected to increase considerably, as rising costs are forcing a growing number of small businesses to drop their group coverage each year. This would not be a crisis if individual coverage was more affordable, but the high cost of premiums and strict qualification requirements have left millions of people with the huge risk, both to their health and finances, of going through life uninsured.

If you fall into the massive category of individuals who either run their own business or work for a small company unable to afford coverage for its employees, you still have affordable options available to you. I recommend the following:

1. Educate yourself: There's no doubt about it: Health insurance is complicated. Don't make the mistake of jumping into a policy blindly. You need to research your available options thoroughly so that you fully understand your coverage and benefits. This process should start with the basics. Go to How Stuff Works and read their simple, straight-forward guide to health insurance so that you're familiar with the various types of plans, terminology, etc.
2. Research group options: Do some research on self-employed or uninsured employee grouping. Oftentimes, organizations offer reduced rates to self-employed or uninsured employees, so long as they enroll together rather than individually. There's typically an enrollment fee, but the discounted group rates should provide enough of an offset to make it worth it.
3. Look for an individual policy. So long as you can afford it, and you do not have a preexisting condition that puts you in a high-risk category, you may be able to obtain an individual policy with relative ease. There are a number of options to choose from, including fee-for-service plans, PPOs, HMOs and HSAs. I suggest reading up on each type of plan to see which fits your individual needs/budget. Once you're educated, look for quotes online or visit the NAHU to find an independent agent who can help you make a selection.
4. Consider opting for a mini-medical plan. These plans are limited benefit health insurance programs with very few restrictions, designed to reduce premium costs and qualification requirements. Typical barriers to getting coverage, such as preexisting conditions, age, and previous denials, have little-to-no bearing on policy issuance. They're a great solution for the unemployed, self-employed, or employees of small business unable to offer full coverage. To learn more about this type of plan, check out iCan Benefit.

These are challenging times economically, but when it comes to health insurance, you can't afford to take risks. Having insurance coverage gives you access to the care you need to make sure you're doing all you can to prevent future problems that may be life threatening, and it minimizes the potentially overwhelming financial burden of unexpected medical costs. Remember that in your search for coverage, the most important thing you can do is educate yourself about your options so that you thoroughly understand your policy before you enroll.