How much does health insurance cost for the self-employed small business owner?
By Nate Purpura on August 29th, 2012
Filed: College Students, Consumers, Employee Benefits, Facts, Health Insurance, Health Reform, Self-Employed, Short-Term, Small Business Owners, Unemployed, Uninsured
New data on individual plan costs for 2012: available here
In 2010, the number of Americans who identified themselves as “self-employed” reached 22.1 million, according to the latest data from the Census Bureau. That’s about 15% of the labor force and over two percent higher than the it was in 2002.
We certainly see a lot of self-employment here in the Silicon Valley. When people find out that I work in the health insurance industry, the first question they’ll usually ask is one of these three:
- How much does health insurance cost for the self employed?
- How much does health insurance cost for a self-employed small business owner?
- What’s the average cost of health insurance for a small business with one person?
And, because the health insurance industry is as complex as it is, I can never give them a straight answer. Why?
Because it depends on a number of factors including:
- What type of insurance do you want? Your primary options are small group insurance, individual insurance and short-term health insurance.
- What state do you live in? In some states you can get small group health insurance with a one-person company. In most states you can’t. And, in some states individual insurance is very affordable, in others it’s not as much.
- Do you have any pre-existing conditions? In some states it’s hard to get individual insurance or short-term insurance if you’ve got health issues.
- How long do you need the insurance? If you’re planning to hire employees in 6 to 12 months, you can get away with short-term insurance. If you want or need the insurance indefinitely, then short-term may not be the best option.
Here are several previous blog posts we’ve done on the topic of health insurance costs.
- How much does short-term health insurance cost? (Average is $67)
- How much does individual health insurance cost? (2011 average was $183)
- How much does small group health insurance cost? (links to a report – Average is $458)
- How much will individual health insurance cost in 2014 when health reform kicks in? (estimates range from $483 to $408)