Health Insurance: Frequently asked questions

Jun. 30, 2006

My husband and I are self-employed. How can we get affordable health insurance?

You have several options for buying affordable health insurance.

As a small business — and that's what you are — you can team up with other companies in what are known as "purchasing pools." That partnership will strengthen your buying power. Insure.com's story Strength in numbers tells you how to take a dip in one of those pools.

If that route doesn't sound attractive, you might be able to jump on the PEO bandwagon. PEOs, or "professional employer organizations," handle the benefits of numerous companies and become co-employers of all the workers at those companies. The PEO, representing hundreds or even thousands of workers, can then go out and purchase benefits at low-cost group rates. If you want to retain complete independence over your small business, though, the co-employer relationship and other downsides might make PEOs unappealing. Small businesses offer big benefits through PEOs explains the good and the bad of PEOs.

Another option for the self-employed is to simply find an insurance company that considers you a small business and will sell you a group plan. Many health insurers consider one or two to be a group. Contact your state insurance department to find out which insurers are licensed to sell those kinds of small-group plans.

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