Ask YC: Where/how do YC founders get health insurance?
And how many founders live without insurance in the beginning?
18 comments
These are old but the Ask YC Archive has good advice. Here are the threads on Health Care: http://www.gabrielweinberg.com/startupswiki/Ask_YC_Archive#t...
As a freelancer I've used ehealthinsurance.com to buy my own health insurance in the past. But this depends a LOT where you live: It used to cost me around $75/month for decent coverage in the Philadelphia suburbs vs around $300/month for bare bones coverage in the NYC suburbs (North Jersey).
If you put some contact information in your profile (or contact me at my username at my username dot net) I can put you in touch with someone who can at least get you some quotes from a bunch of different carriers at no cost to you. (i.e. a broker)
HSA accounts with a high deductible plan are a great way to self insure and save money. We have the $5300 deductible plan for my family via Assurant and fund our HSAs to pay the costs. For a family of four, we pay about $320/month.
We do have health expenditures that we cover out of our own pocket but it generally adds to be less than what we would spend for a $500 deductible plan with all the amenities.
We do have health expenditures that we cover out of our own pocket but it generally adds to be less than what we would spend for a $500 deductible plan with all the amenities.
Used to get mine through the FreelancersUnion, but they screwed with their health insurance way too many times for it to be a viable option for me. As a result, I buy mine from ehealthinsurance.com and got a policy from United that fits my needs. Also, if your startup has more than one employee, you can form your own group, and get better group rates ... even if only one of you signs onto a policy.
How did they mess up? I'm considering them.
They changed their provider each year, forcing everybody to re-evaluate your insurance with a completely different company with different plans each year for three years. Frequently your doctors wouldn't accept the new company's plans, so we were forced to pay out-of-network to keep our doctors, or change to a new doctor. Each year they were extremely late in providing information about the change. Their phone system broke down EVERY year during enrollment periods, and the people on the phones frequently gave out incomplete or innacurate information. They then decided to become their own insurance company. The details about the plans they offered was vague at best, and they were unable to provide clarification on maximum out-of-pocket costs on phone conferences with some very specific questions. It felt like they had a conflict of interest in that they were trying to sell their company rather than provide potential applicants with information to decide whether it was the right solution for them. I jumped ship at this point, and only use them for my dental insurance. I figure if they're unable to operate something as basic as a phone bank, I don't want them trying to administer my health insurance.
There's a lot on the web about their screw-ups. Here's one link with some coverage:
http://gawker.com/tag/freelancers-union/
http://community2.myfoxny.com/service/displayKickPlace.kickA...
There's a lot on the web about their screw-ups. Here's one link with some coverage:
http://gawker.com/tag/freelancers-union/
http://community2.myfoxny.com/service/displayKickPlace.kickA...
I had COBRA for many months from my former employer (worked well, very expensive). Then I found an excellent broker in the Atlanta area and got a good HSA plan from Aetna. So far so good, much cheaper, provided we don't have claims.
When I've had the option in the past of using COBRA, it's always been so astronomically expensive that I've passed, and instead taken out a policy elsewhere.
My guess has always been that COBRA is probably something that's required by law for employers to offer, but there's probably some loophole somewhere that allows them to price it so high that very few people actual take them up on it.
My guess has always been that COBRA is probably something that's required by law for employers to offer, but there's probably some loophole somewhere that allows them to price it so high that very few people actual take them up on it.
The pricing for COBRA is the same price that your plan cost overall through the company (I think maybe they can charge an additional 5% to cover administration costs). So you're just seeing the true cost of the plan your old employer provided. They can't jack up the price on you.
The other problem is that you're seeing the AVERAGE cost of the plan. So, while you as a 20-something single guy would get a great rate from Aetna/whoever, you're paying for old fat smoker when you go with COBRA.
I've bought insurance through Cleveland's COSE (Council of Smaller Enterprises) in the past. Pretty expensive, but really good coverage (I have a family).
I've bought insurance through Cleveland's COSE (Council of Smaller Enterprises) in the past. Pretty expensive, but really good coverage (I have a family).
I'm not a YC founder but I got an individual plan from Blue Cross Blue Shield (MN) through ehealthinsurance.com. It is an excellent plan (so far) and wasn't nearly what I was expecting to pay (<$150/mo).
Is it a high-deductible plan?
Also, I've dealt with BCBS in the past and could never get anyone on the phone if I had an issue.
Also, I've dealt with BCBS in the past and could never get anyone on the phone if I had an issue.
I highly do not recommend BlueCross Blue Shield. They are not a reputable company. They will cancel your plan without telling you. I went to a doctor once thinking my plan was fine only to be told days later that my insurance had been canceled months before with no notification from BCBS and becuase it was beyond 60 days, they would not reactivate my plan, even when I offered to pay for the months when it was canceled.
YMMV, but I will never be a BCBS customer again.
YMMV, but I will never be a BCBS customer again.
I had a similar experience with BCBS. I paid them for insurance while I was between jobs. Called them up when I ready to cancel to find out that I apparently had a one-month plan. Umm.. OK? Who signs up for a one-month insurance plan? (Obviously I didn't keep a close tab on my bills.)
Insurance has come up a couple of times on reddit and there are always comments about how bad BCBS is. Even several comments about how doctors will say they're booked just to avoid dealing with BCBS.
Insurance has come up a couple of times on reddit and there are always comments about how bad BCBS is. Even several comments about how doctors will say they're booked just to avoid dealing with BCBS.