One of the pitfalls of being in small business is not having access to the kinds of massive group medical insurance plans that corporations have. While running a small business can have many benefits over working for someone else, the lack of medical insurance options can be a huge frustration. Fortunately, there are some medical insurance options for small business owners and employees who want to take the time to do a little digging.
Here are some of the options available for small businesses to get some medical insurance coverage:
Group Purchasing Agreements (GPAs)
Group Purchasing Agreements help small businesses get access to medical insurance by grouping multiple small businesses together to represent the same buying power of a much larger company. Several states have mandated that GPAs be available. These states include Arkansas, Kansas, Montana, New York, New Mexico, Ohio, Texas and Wisconsin.
Even in states without mandated GPAs, you may be able to find an association of small businesses, such as a local Chamber of Commerce, that has established a GPA.
High Risk Medical Pools
Some states have what are known as “High Risk Medical Pools.” These are medical pools that guarantee coverage to folks who can’t get medical coverage through another source, usually because of a preexisting medical condition. These pools guarantee major medical insurance for a price. Only a few states don’t have these pools, including Arizona, District of Columbia, Georgia, Massachusetts, Michigan, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia. In other states, the state insurance commission can provide information about the high risk medical pool in that state.
Reinsurance
Reinsurance is a state-run program that subsidizes medical insurance. States may offer medical insurance to small business owners and employees, as well as people below a certain income line. In other cases, a state may offer a purchasing pool. Sometimes the cost of the program is put off on a third party, such as a reinsurance carrier, a reinsurance pool, or the state itself. Several states provide reinsurance policies, including Arizona, Connecticut, Idaho, Massachusetts, New Hampshire, New Mexico and New York.
While medical insurance options for small businesses may be more costly than medical insurance policies through a corporation, in today’s environment you can’t afford to be caught without some form or another of medical insurance. Check with your state and with your local business groups to see what kinds of options may be available to you today.
