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Ask HN: Is (lack of) startup insurance a pain point?

2 points by reidbenj ↗ HN
I have a hypothesis that lack of affordable and/or simple health insurance options might be a limiting factor on entrepreneurship in the US by keeping people who otherwise might take the leap from the corporate safety net from doing so. Is this a real problem? Or are current solo/group options good enough?

2 comments

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steventruong
I can't speak for others here but we worked with an agent that helps small companies (2-50) people get insurance going (medical, dental, and vision). In cases where we would benefit from pooling with other companies in groups to get discounts (this was the case for vision I believe), we were given the option.

I don't really have a whole lot to compare pricing options against but we thought the monthly rates were fairly affordable per employee. Of course there is a wide range of packages and insurance companies to choose from.

thejteam
The health insurance experience varies greatly from one state to the next, so my take is based solely on Maryland.

If you are young, single, and have never had any major health problems then there is no problem at all. Your health insurance will be cheaper than your car insurance. Also, current federal law allows you to stay on your parents policy until age 26(personally, I say cut the umbilical cord already).

If your startup is going to purchase health insurance for multiple people, then you can possibly get into your state's small group plan. You will pay more but it is group insurance that will cover most pre-existing conditions, subject to whatever your state prescribes.

If you have a family it is a bit more difficult but if there have been no major health problems then it should not be too much of a problem. I am in the process of starting my own company and I have gotten quotes for me, wife, and 3 small kids for about 300 a month. The deductible is higher than I have now but is reasonable.

So, no, I personally don't think it is a problem. A lot of people may use it as an excuse, though.