Own your own business, whether you are self-employed or you are a franchisee, comes with a variety of benefits. For example, you are able to dictate your own hours, have full control over how your business is run (which is especially important for those entrepreneurs who are a franchise owner), and develop and execute a business plan that works best for your personal needs.
That said, there is an equal number of disadvantages that come with being a business owner, with one of the biggest issues being the fact that you have to purchase your own health plan and manage the health coverage of any employees who may work under you. If you are a founder of a new business who is looking into health plans, take a look at the guide below to learn which options may be best for your business model.
Health Insurance Plans for Self-Employed Entrepreneurs and Franchise Businesses
For those who run a type of business where the only employee at your startup is you, the good news is that it will be easy to find a health insurance company that will be able to provide you with the health care that you need. Unfortunately, you will be paying out of pocket costs, which means that it is important to find monthly premiums and copayments you can handle. What type of health insurance plans is right for you? Let’s take a look at a few options…
1. The Healthcare Marketplace
The Healthcare Marketplace, which helps business owners cycle through options like Medicaid (and other products that may be covered under the Affordable Care Act, “Obamacare”), is often the first place that entrepreneurs visit if they are looking for a health insurance company that can handle their individual needs.
Given the host of products on the market, you are sure to find an insurance company that is a good fit for you. Just make sure that you understand the implications of choosing a certain health insurance plan before you sign on the dotted line. You may also want to look for private health insurance quotes before coming to a major decision.
2. Short-Term Health Insurance
If you have missed the deadline for open enrollment and are in need of coverage now, you may want to consider looking for a short-term health insurance plan that will keep you protected until the next open enrollment period.
These insurance products may not be the best way to receive coverage but give you the option of signing up for a short amount of time until you need to cancel the plan. Make sure to choose carefully review short-term health insurance quotes before buying so you get the best coverage for your needs.
3. The SHOP Marketplace
The Small Business Health Options Program (SHOP) is a state program offered at the federal level as part of the Affordable Care Act. For new franchisees who run a small business, you can use look through marketplace plans through this program that will work best for all of your employees (and you may even receive a premium tax credit in the process).
4. COBRA
If you were previously covered for medical expenses under another employer or under a health care plan that was shared with a family member, you may be able to take advantage of COBRA. COBRA is a type of health care plan extension provider that allows you to receive coverage for up to 36 months if you find that you may no longer be supported in your new career. Keep in mind, however, that this option often features higher monthly payments and copayments and that it is not an open enrollment period event.
While looking into how to start a franchise and creating marketing materials, coming up with your new franchise trademarks and mapping out your grand opening, or working out a proven business model for your small business is far more fun than handling the more basic aspects of your entrepreneurial endeavors, learning all of the important information surrounding insurance requirements is vital to a successful business.
Whether you are in need of individual health insurance plans or specific coverage for your type of franchise, use the guide above to learn more about the coverage options at your disposal.
