Health Coverage

Individual Policies

As a small business owner, you must obtain your own health insurance coverage. Here are some helpful hints.

If you have to buy an individual medical insurance policy, get quotes from either a commercial insurer or from your local Blue-Cross Blue-Shield.  Be prepared for larger monthly premiums which are dependent on your family status.  (Blue Cross covers hospital costs while bills for medical and surgical needs are taken care of by Blue Shield.)  Although the "Blues" exist throughout the country, local plans are autonomous and offer different coverage.  

Blue Cross/Blue Shield is different from commercial insurers in that they maintain a nonprofit status.  Thus, their rates may be lower.  They charge premiums as do other insurance companies but they generally pay bills directly to the provider.  (With commercial insurance often you must pay the bill and wait to be reimbursed and your reimbursement may or may not cover the full bill.)  Generally, policies are guaranteed to be renewable, which is not always the case with commercial insurance.  A number of the Blues let you sign up for coverage regardless of your health, during a period called open enrollment.  So, if you have a chronic or pre-existing medical condition, the Blues may be your only choice, although some state laws require all insurance companies to provide coverage regardless of your health.



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