medical insurance for small business

[frugalnacho]

I'm planning to start up a business with a couple of partners.  3 owners total to start, but hopefully we do well enough to start hiring employees after a few months.  Both of my partners have spouses that work, so they are able to get insurance through their spouses, so they are likely to do that even once the company starts offering medical insurance to employees.

Given that I am the only one that needs insurance I'm assuming I cannot call up a provider and say I have a business with 1 employee that needs insurance. Or can I?  Or should I go on the health insurance market place, or I just pay for COBRA to extend my current coverage after I quit?

If I choose the market place or COBRA, and we end up hiring an employee in a few months, will I be able to call up an insurance provider at that point for my 1 employee? Will I be able to change up coverage so that me and my new employee (and all future employees) will be on a new plan?

How do I navigate this given that I don't know exactly what my company's insurance needs are going to be much in advance?

I have pregnant wife and child at home so forgoing insurance isn't an option.  In Michigan.

[Queen Frugal]

I have a small business. Prior to the ACA I paid hefty premiums for company sponsored health insurance, sometimes for a company of one. I have found no need for company sponsored health insurance since the ACA. At least in my state, marketplace plans have always been my best option - especially since I can stay under the ACA cliff.

But you can absolutely call up a provider and ask for a quote. Even for a group of one. In my area health insurance agents tell me these small policies are tough to write but they can be done.

[Altons Bobs]

I don't know how it works in Michigan, but in my state, you can set up a group plan with your situation. So basically your partners can waive coverage, and you'd be the only employee participating (with your dependents). Once your group plan is setup, the rates are good for 12 months regardless of when it starts. When you hire a new employee, your group rates are already there. Or you can be on COBRA and when you hire a new employee, your new employee can be the only one on the group plan which you will setup after you hire the new employee, the rest of the people can waive coverage. Again, I don't know how it works in Michigan, you'd have to talk to a local broker to find out. I'd suggest against using any national brokers like ehealthinsurance, they usually do not know your local market well.

You may not qualify for subsidy, or the ACA plans are not what you want, you will see more choices in the Small Group market.

[Proud Foot]

You might look into a Professional Employer Organization (PEO) and see if joining one would be a good solution for your situation.

You could also do like a recent MMM article and do a combination of direct primary care with a health share or catastrophic insurance plan to cover major medical. Obviously this only works if direct primary care is available where you live.