If I incorporate my small business, can I buy health insurance that will cover a pre-existing condition?

In: Health Insurance

9 May 2010




I really want to start my own business, but can’t leave my job because I need the health insurance. Although I can buy private insurance, it won’t cover pre-existing conditions. I have two that require medicine, but probably nothing much beyond that. If I form a corporation, will I be able to buy private insurance that covers my pre-existing conditions?





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6 Responses to If I incorporate my small business, can I buy health insurance that will cover a pre-existing condition?

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cassie

May 9th, 2010 at 7:49 pm

no insurance provider will cover an existing condition, they can see they will lose money!
they might cover you only if there are no previous record of this condition getting in your way of any work etc. and dont tell them.

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Insurance

May 9th, 2010 at 8:30 pm

Pre existing ?

I know some group insurance covers that. Business group insurance works differently but they require a minimal head count of at least 12 people in group.

There is no underwriting requirement if the group is large enough

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Zarnev

May 9th, 2010 at 8:59 pm

Yes, it is possible but has nothing to do with incorporation. There are some insurance companies that will insure a group as small as two employes. This means you’d have to take COBRA from your current employer if it is offered. This will guarantee your new plan will waive the pre-existing conditions. If you can’t get COBRA this may not work, depending upon the condition. Start your business and hire at least one full-time employee. Get the new insurance for your company in place (if they’ll take you, with a small group it may be hard to get accepted with pre-existing conditions) and cancel the COBRA.

Any individual policies will likely have the pre-existing conditions clause or may rider or decline you based upon the condition.

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michaelh7

May 9th, 2010 at 9:08 pm

Each state has different laws governing the insurance carriers in each state. That being said, it is likely that you can get a small group plan, and your pre-existing conditions would be covered immediately because you can prove continuous coverage, (employers plan.) Most likely you would not need to be incorporated, and would not need to purchase COBRA coverage if your effective date on the small group plan dove-tailed with your last day of employment.
That’s the good news. The bad news is that, in general, group insurance rates are about double that of an individual plan. If at all possible to obtain an individual/family plan, (even with a waiver or two,) I would consider this. If your pre-existing conditions are not too serious or expensive to maintain, it may well be worthwhile to purchase an HSA, (Health Savings Account,) qualified plan, paying for any medications/office visits with pre-tax dollars.

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mbrcatz17

May 9th, 2010 at 10:05 pm

Nope. In order to get a group that covers pre-existing conditions, you have to have at least 25 employees. Groups smaller than that are underwritten and priced based on the health of the members.

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sanjua m

May 9th, 2010 at 10:24 pm

please try this
help!

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