Finding self-employed health insurance

People who are on the entrepreneurial track should ensure that they are covered by an appropriate health insurance plan as soon as they leave their permanent jobs. Appropriate health care helps the entrepreneur focus on the success of business without the burden of financial expenses as a result of an un-expected illness or injury.

As soon as you quit your corporate workplace, invoke your rights under the COBRA (Consolidated Omnibus Budget Reconciliation Act). Under this provision, you can continue your current corporate medical insurance plan coverage up to 18 months at the same subsidized rate given to the company by the insurance provider. The only condition is that the company should employ more than 20 people; you should not have been fired by the company for your negligence, irresponsibility or incompetence.

However, since some of the insurance cost would have been paid by your employer, after you quit, the entire subsidized premium has to be paid by you for the next 18 months. This would be higher than what you would have paid when you were a full-time employee.

This grace time would ensure that you are continuously covered by a health insurance plan. As an alternate to COBRA you can consider an affordable short term health insurance plan.