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Health Insurance Costs For Small Businesses Question & Answers

2016 January 30
by Sarah Fields

Laura asks…

How would tax deductions for health insurance help start up small businesses?

New business starting out are usually not making much of a profit, if any, in the beginning. If the Obama wants to give them a subsidy for health insurance for the entrepreneur/s and the employees, wouldn’t that subsidy have to take a more direct form?

Sarah Fields answers:

There are two ways in which health insurance reform would help small businesses. First, many people are unwilling to try to start a small business because that would mean giving up the only insurance they can get, which is through their job. If there were a public option they could buy into, it would be much more likely that they would try to start one in the first place. This option would also be available to their employees, relieving them of the burden of trying to provide it for them.

If no public option is included in the reform, then things become much more difficult for the employers/employees. Even with a cooperative, the cost of providing insurance for all employees will probably be prohibitive for the first five years of a new company. So some kind of subsidy would be required. And just like with those who imply that a tax credit would enable individuals to buy insurance, it won’t work for small businesses either. There would need to be a direct subsidy.

This is how small businesspeople feel about health care reform. Http://

Maria asks…

how much does health insurance cost to a small buisness owner with only 2 employees?

a friend owns a business and has asked me to join her operation. she doesn’t currently have health insurance or offer it either. i want to propose it as terms of my employment, but would like to have information as to costs she will bear in relation to my salary. any suggestions would be helpful. thanks!

Sarah Fields answers:

It can vary quite a bit depending on the collective helath history of the group. It might be good to start by going to and filling out the quote form there. A local agent will contact you and discuss both of your medical histories and help give you different options. They should be able to give you a price range of where the final prices will fall (the group has to be medically underwritten most likely).

I hope that helps.

Jared Balis

James asks…

How much would general liability insurance and health insurance cost for a small business in Beverly Hills, CA

I have to do a project for my Economics class. I have to establish a fictional business. The problem is, I can’t find out the cost of insurance unless I fill out a form and wait to be contacted by an actual insurance agent. I’m not really forming a business. So I was just wondering, how much would each insurance generally cost?
Any help would be greatly appreciated! :]
Thank you!

Sarah Fields answers:

I think and arm and a leg!

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