Health insurance is expensive. There is no way to get around that fact and anyone who tells you different is trying to sell you something you don’t need. Unfortunately for a young business, the burden of health insurance is even more important than that of a larger or more mature business, (in development, not demeanor).
A Case for Health Insurance
For an entrepreneur skimping on insurance, especially health insurance, is playing Russian Roulette with your future. At no time in your business’s growth will the health and wellness of employees be more important than the start-up years. Think about the set-back in growth if the founder of a 2nd year business became ill and had to miss a month. A terrifying scenario for most young businesses. Now think about that same situation coupled with the stress of the same business founder coming straight out of pocket for all medical expenses. I’ve seen this situation where money earmarked for business growth is diverted towards medical costs and it’s not pretty.
Don’t buy into the misconception that health insurance is a luxury just because the price tag makes you sweat. Do not think in terms of price, think in terms of cost.
Don’t Get Too Big For Your Britches
Take the term HMO and throw it out of your vocabulary. If you can afford an HMO you probably don’t need to be reading this article (though I appreciate that you are). For bootstrapping businesses concerned about the health of their employees as well as red numbers in their bank account think about High Deductible Plans, or EPO Hybrid Plans which provide less upfront benefit but also have a less stressful price tag.
Providing a Proper Health Plan Takes Work