Are You Covered?

Health Insurance

Unless you're lucky enough to have a spouse whose employer provides medical benefits for your entire family, health insurance is the most obvious form of insurance an entrepreneur needs.

Non-group health-insurance plans are more expensive than the group plans available to businesses. This holds true whether you pay for traditional indemnity coverage or choose to enroll in a health-maintenance organization (HMO). For example, an indemnity plan with Blue Cross and Blue Shield of Massachusetts that covers a family of three or more, does not include dental care and carries a $200 deductible, costs nearly $6,700 in annual premiums.

National associations such as HBI, NASE, the Independent Business Alliance (IBA) and the American Entrepreneurs Association (AEA), however, as well as state and local business associations--with tens of thousands of members each--can offer coverage at more affordable group-plan rates. And as a consolation for paying for your own health insurance--unquestionably, a major business expense--the IRS now allows self-employed businesspeople to deduct 40 percent of health-insurance premium costs. For more information on the specific IRS guidelines, request IRS Publication 533, Self-Employment Tax, and IRS Publication 502, Medical and Dental Expenses, by calling (800) 829-3676.

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the September 1997 print edition of Entrepreneur with the headline: Are You Covered?.

Loading the player ...

The One Word That Will Help You Close More Sales

Ads by Google

Share Your Thoughts

Most Shared Stories

Want Media Attention? Target Trades First
6 Things Mark Cuban Says You Need to Be Great in Business
Don't Just Start a Business, Solve A Problem
The 80/20 Rule and How to Supercharge Your Sales and Marketing
Is It That Important to Be Nice?