Health Insurance for the Self-Employed

One of the most difficult--and expensive--aspects of starting a small home business is finding affordable and adequate health insurance. Since a national health plan is at best years away and since you risk your assets and health if you go without, it's important not to put off getting health insurance. Here are a few places to look:

• Cobra - If you are quitting a corporate job to go into business for yourself, make sure that you take advantage of the government plan--Cobra--that lets you keep your company health insurance if you pay the premium yourself. In most cases, this will be lower than the coverage you can get on your own. Cobra benefits last for 18 months after you leave your job.
• Local Small Business Associations - Small business associations in major cities often offer health insurance plans that allow multiple companies to take advantage of their group buying power under one group health plan. In Cleveland (where I live), COSE offers health plans for small businesses starting with one-person enterprises. In addition, the membership fee gives you access to a number of marketing and networking resources. Check to see if your city has a similar organization.
• AARP - If you're at least 50 years old or going to be turning 50 soon, don't throw the mountain of literature that AARP sends out away. It can save you money. For $12.50 annual dues to join AARP, you are eligible for their health program via United Health Care. I joined last year and saved more than $200/month on my health insurance bill.
• Assurant Health - This company (in business since 1892) offers a number of health insurance products aimed at the self-employed, at attractive prices. It's my experience that they favor young applicants with no medical history. They also offer temporary health insurance for up to six months if you need a policy to cover you during a waiting period.
• Trade associations - Many trade associations offer group health insurance to their members. Ask people in your industry or visit forums for your type of business. Often these policies are limited to certain states.

Do you know of a good and affordable place to get health insurance for the self-employed? Share your story by leaving a comment.