Health Insurance – Private vs Group Policy for small home-based business?
I am currently investigating my options for providing health insurance coverage for my family. I am self-employed and planning to register an LLC for my work as an independent contractor and my wife’s employer dropped their health care benefits earlier this year. I have several questions if anyone has experience in the area of small business and/or private health insurance.
1. Is it correct that if both my wife and I are paid employees of my LLC I would be able to qualify for a group health insurance policy for the 2 employees – even if it is just me and my wife?
2. Will we be more likely to secure better health coverage (i.e. maternity, lower deductibles, etc) with a group policy than an independent family plan?
3. Are there any prohibitive costs which would make this approach unreasonable compared to private health insurance?
Any other suggestions are welcome, I want to begin comparing rates but need some guidance first. Thanks in advance.
Thank you for the information, I will investigate this further with an agent next week. Indeed I do not know the policies in my state (Ohio) but the individual who recommended this approach to me found great benefits in Connecticut.
As a new family we can’t take the chances of not having adequate health coverage. All the private plans that I investigated required riders for maternity coverage so it would be nice to get an expert opinion.
Thank you for the new responses. The purpose of forming the LLC is to protect my personal liability in the event that a future client would take legal action against me for whatever reason. I was curious about this approach since it was suggested by someone I trust, though I was not sure it would hold up in an audit.
It seems that it might be better to just buy a private plan and then take the deduction for self employment health insurance, as long as my wife’s employer does not provide health insurance benefits. Is that a better approach?