

Ask HN:  Where do startup founders go for health/dental coverage? - baguasquirrel

We're young, and we don't get sick that often (hopefully).  But it still seems like it'd be a good idea to be insured.  Seeing that we ought not get sick often, is there any insurer that would be optimal for those corner cases, where we accidentally drive off the road one night?..<p>Perhaps I am supposing too much.  How often is it that founders run around without insurance?
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jacquesm
It would really help to know more about where you are located, without that
information it is difficult to tell you what your options are.

For the US and Canada the easiest thing is to let an insurance professional
work out the details for you, get several quotes that give you the kind of
coverage that you need and then sign up with one of them.

It may significantly change the picture if you incorporate first, then get a
corporate health package for your startup and register yourself as an
employee.

Remember about special circumstances such as business travel if you are going
to spend a lot of time en-route.

Another big factor for self-employed people is insurance that covers you in
case you become incapable of working, but personally I've never been able to
justify the expense of that kind of insurance.

If you can, save up. I know that's weird advice to someone starting out
because you'll need every penny you can get to make it go, but even so, if
there is any chance of it, create a little nest egg, you never know what's
around the corner.

~~~
baguasquirrel
I'm in the Bay Area, but I was looking for a more general answer for everyone
else here. That having been said, you really ought to be in the Bay Area if
you seek to do a startup.

~~~
jacquesm
Why on earth should one be in the Bay area if you seek to do a startup ?
People are creating successful (web) companies all over the globe...

It may help in some respects, but in others it might actually be detrimental.

One of the beautiful parts of working via the internet is that you can do it
from just about anywhere. Plenty of start-ups and open source companies work
without a formal office, the founders are where ever they were living before
they got together and formed a company.

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dpifke
I think a lot of us keep our COBRA coverage from previous employers. I took
this route for about six months before getting around to pricing an individual
plan. Which, surprisingly, was about 1/3rd the cost for way better coverage
than what I had before.

I disagree somewhat about only needing coverage for catastrophic illness or
accidents. There's a huge psychological benefit to not having to do a
cost/benefit analysis if you think something's wrong and you want to go to a
doctor.

~~~
pasbesoin
Sorry for any overlap; your post and my edit re COBRA appear to have crossed
paths.

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Flemlord
At one point I had worst-case personal health insurance through Blue Cross
Blue Shield (Anthem). This was several years ago but I remember it costing
<$100/month.

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pasbesoin
I don't have any specific suggestions, but I am interested in what others
might have to say.

In the U.S., for those who are young and healthy, and with an income and/or
savings that can cover routine and significant initial expenses, I've heard it
recommended to go with a major medical plan having a high deductible (multiple
thousands of dollars). You pay for all the routine stuff yourself, and for the
initial hit for anything bigger. If you encounter a catastrophic situation,
you are covered (beware of pre-existing conditions when you sign up). The risk
of that is relatively low. Rates are commensurately lower. This corresponds
more with how medical insurance was for many some decades ago, before coverage
was in practice extended to routine expenses.

It's the expense of a catastrophe you need to worry about. If you end up
tapped out, families and, if necessary, friends can usually find a way to
cover a few thousand dollars until you hit your out of pocket limit.

Most likely, there are people who care about you. Carrying health insurance
isn't just about you, it's also about them. You prevent putting them in a bind
where they must exhaust their own finances to take care of you. (Of course,
these days the way insurance companies reprice and drop policies limits the
longer term efficacy of self-insurance while unwell, but it's still a valid
argument.)

Years ago, I heard that (again, in the U.S.) the IEEE had some group plans
that weren't terrible. But that was second hand information, from someone well
into middle age (and so in a different part of the market), and times change.

Finally, a number of people I know with their own small businesses obtain
their coverage through their spouses or significant others, who work a job
that provides a group plan. I'm not saying Plenty of Fish nor eHarmony is a
plan of approach, but if you are in a long-term relationship with someone
having coverage, even if not married, it is worth exploring what that plan may
offer. My last employer covered long-term partners (although I'm not sure how
that was qualified; I believe sharing a household may have been a factor).

EDIT: One more thing: I think that COBRA may now cover students for some
number of months after they leave school, as a continuation of their coverage
e.g. under a parent's group coverage from work. I could be wrong; perhaps
someone else can speak to this.

If you are just leaving school, this would be looking into; it would give you
a year or 18 months or whatever, as long as you can pay the monthly premiums.
However, you must elect COBRA coverage within a relatively short period of the
time at which you qualify, or you lose the option -- at least that's how it is
when electing COBRA after leaving an employer.

~~~
psyklic
The high deductible insurance isn't only for emergencies -- many of these
plans offer significant discounts on prescription medicines regardless whether
you've met the deductible. This alone is worth it!

Also, if you submit doctor's bills through your insurance company, most of the
time the insurance company will negotiate a better rate. So, even if you
haven't met the deductible you'll end up paying less.

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icey
Call a broker. They're in the yellow pages and will be happy to give you a
quote with no obligations. If you tell them what your parameters are, they can
probably find something for you.

