One of the biggest leaps an entrepreneur can take is leaving behind a job with health benefits. In the United States, living without health insurance can have catastrophic financial consequences. Entrepreneurship is rattling enough as it is – flying by the seat of your pants without health insurance doesn’t help matters.

So what are your options for health insurance when you’re self-employed or starting your own company? In short, like so many other decisions the answer is: it depends.

Here are a few ways entrepreneurs keep their families insured while building their businesses.

📁 Buying a Group Health Insurance Policy As a Small Business Owner

Health insurance policies are tax deductible expenses when purchased through your business, so if you can swing it, there’s a strong financial benefit to doing so. The Affordable Care Act has a program called the Small Business Health Options Program (SHOP) that provides businesses with between 1 and 50 employees a marketplace with health insurance policy options.

In order to be eligible, your business needs to have just one other employee other than yourself. Sole proprietorships are not eligible for SHOP policies.

💸 Buying Private Health Insurance When You’re Self-Employed

If you’re a single-member LLC or sole proprietor, then you won’t be eligible to participate in a group policy through your business. However, there are private health insurance options available on the marketplace specifically for self-employed individuals in need of coverage. Without an employer paying part or all of these premiums though, they can be quite pricey.

🏥 Pairing HSAs with High-Deductible Health Insurance Policies

High deductible health plans (HDHPs) aren’t ideal, but they can come with som benefits. If you’re self-employed and can verify that you have an HDHP, then you may be eligible for a health savings account, or HSA. HSA’s allow you to set aside tax-free money earmarked for health expenses, lowering your tax liability and making your dollar go further on your medical expenses.

👨‍👨‍👧 Using Health Co-ops to Get Affordable Care

Another often overlooked way to get health insurance coverage when you’re self-employed is to join a co-op. Co-ops are nonprofit organizations that organize members to get group health insurance policies and better rates for its members. Typically there’s a unifying set of criteria that determine eligibility for its members – many co-ops are religious.

Though they can be difficult to find, these groups may represent one of the last really good options for early-stage entrepreneurs seeking health insurance in the United States.

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