

Ask HN: Health insurance in startups - timwiseman

How do you handle health insurance during early stage startups?  Do you pay for it as an unavoidable expense?  Forgo it entirely, or look for more creative options?  If they go into effect, would proposed mandates change the answer?
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larrykubin
I've taken a few approaches over the past few years.

First approach: I had no health insurance at all. Most people will tell you
this is a bad idea, and it probably is. I got a check up right before I quit
my job. This was the first time I had been to a doctor since I was a little
kid, so I wasn't too worried at the time.

Second: I finally decided to get an HSA (Health Savings Account). This covers
you in case of a disaster. It's a high deductible plan where you save money to
pay for health expenses. For a non-smoker in 20's, the cost was roughly $60 a
month, and you could sock away a few thousand a year (forget the exact number)
for health expenses. I think the exact maximum has changed somewhat. You
aren't taxed on that money for the year, and if nothing happens, you just get
to withdraw it when you are in your 60's. I thought it was a pretty good deal
in that I was willing to cover smaller medical bills out of pocket, rarely go
to the doctor, and it seems to have the benefits of a retirement account (like
a Roth IRA + Traditional IRA).

Third: Last year I got married. This is ideal in that I'm fully covered at a
low price and no longer have to worry about it.

There are many threads on this very topic - do a few searches on searchyc.com
because this comes up a lot.

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timwiseman
What was your experience like with the HSA?

I had one friend that tried one and had major issues when they were forced to
go on a long term medication.

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DenisM
1\. Check with your doctor. He/she (or whoever deals with insurance in their
practice) might be able to suggest a good plan that actually matches your
health level and provides good coverage.

2\. Learn your local state laws. In WA it is illegal for an insurance company
to reject treatment due to pre-existing conditions if you had maintained
continuous coverage. Hence it is very important not to have any gaps in your
coverage!

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teej
Ask HN on Health Insurance:
[http://www.gabrielweinberg.com/startupswiki/Ask_YC_Archive#t...](http://www.gabrielweinberg.com/startupswiki/Ask_YC_Archive#toc6)

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veqon
Small businesses would be helped by the public option that congress is
discussing.

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timwiseman
Just to make sure I understand the point, are you suggesting that small
businesses should drop insurance as a benefit and encourage their employees to
move to the public option, or is it that the existence of a public option
itself will assist?

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gte910h
individual plans HDHP with reimbursement once you start paying a salary

