WSJ blog highlights uninsured people forming small businesses to get health insurance

The Wall Street Journal reports today on a little-known option for coverage – forming a business and buying group coverage, even for groups as small as one person. Luckily CT is one of the states that allows small group coverage for groups of one and requires insurers to offer coverage to all small groups (guaranteed issue). They don’t require that it be affordable, but often small group rates are less expensive than individual policies. This is especially true for people with pre-existing conditions who may be rejected for coverage in the individual market. Small group rates in CT last year averaged $388/month for single coverage and $1,023 for families, 12% higher than the US average, according to a survey by America’s Health Insurance Plans. Small group applicants still have to give insurers their health information to determine pricing. Kaiser estimated that 29% of self-employed US workers were uninsured in 2005 and that rate was growing; small group coverage may offer a more affordable option for many.
Ellen Andrews