Reprinted from the Health District's quarterly publication mailed to district residents (summer 2000)
TOPIC: Insurance options for the self-employed
 
by lynn-utzman-nichols

Colorado is one of a handful of states that requires insurance companies to offer group plans to businesses regardless of business size. That’s good news for self-employed individuals who qualify for group insurance under a business-group-of-one plan.

It’s even better news for individuals with pre-existing medical conditions. Individual insurance plans can exclude certain pre-existing conditions; group insurance plans cannot.
"Individual policy providers can reject a person for something as simple as high blood pressure. A business-group-of-one policy allows a self-employed individual to be treated just like an employee of a large company," says Nancy Ryan, the public affairs director of the Colorado Division of Insurance.

Business-group-of-one plans have been available in Colorado for the last few years from managed care companies. 
interested?
For more information on business-group-of-one policies, contact the Colorado Division of Insurance at (800) 930-3745 and ask for What Colorado Small Employers Should Know About Health Insurance or contact a local agent who specializes in health insurance.
Although these managed care plans don't exclude pre-existing conditions, there can be several catches. Individuals must work at least 24 hours a week in his/her business to qualify.  There may be other restrictions on enrollment in there has been a lapse in coverage (i.e. no current insurance) or if the individual has been self-employed for less than 12 months.  In some cases, the policy must be written within 30 days of the enrollee's birthdate.

"When it comes to business-group-of-one policies, people with health issues pay the same rate as those without issues," says Clay Mowers, a Fort Collins agent who specializes in health insurance.

Self-employed individuals without health problems have another option: purchasing an individual policy. 

"Individual policies are often less expensive because they are less comprehensive. Plus, the insurer hand picks who they want to include," says Mowers. Often, only the healthiest people are selected. 

Individual plans also offer flexibility for individuals without pre-existing conditions. Catastrophic plans, which cost much less than traditional plans, have high deductibles and are suitable for emergency care rather than routine care at a doctor’s office.

If you want insurance coverage for regular office care, and are willing to pay for it, you can purchase a plan that allows freedom of choice in selecting your doctor. Or, you can pick a plan that includes specific services, such as alternative options like massage therapy or chiropractic care. 

Some organizations and unions with self-employed members offer reduced rates on group insurance to their members. Be sure to check with the organizations you belong to before purchasing a plan.

Also, shop around to find the best deal. Mowers suggests working with a couple of agents when buying health insurance since agents often work with just a few companies.