Health insurance is a must for everyone. Most individuals, being employed by others, are covered automatically by their employer's health insurance plan. As a business owner, you do not have this luxury.

Basically, medical coverage is offered in the following ways:

1. spouse's employer
2. association and group insurance
3. individual policies

Coverage by Your Spouse's Employer

Fortunately, many business owners are covered by their spouse's health plan. Your spouse's employer subsidizes the actual cost of insurance to you. It is important to realize two things: 1) Obtaining coverage through your spouse's employer has many features and benefits you most likely will not be able to obtain individually, and 2) it reduces your premium payments dramatically. So, if your spouse is working and has medical coverage through an employer, make certain you and all your children are included in the plan. If you can't get coverage through your spouse, you have several choices, none of them cheap, but you absolutely must have medical insurance.

One provision of the Affordable Care Act is the minimum coverage provision, also called the individual mandate. Under the ACA, just about everyone is required to have health insurance as of January 1, 2014. Otherwise, they are liable for a tax penalty. Coverage does not have to be supplied through the exchange. People can also get healthcare coverage through an employer, COBRA, Medicare, veterans' benefits. etc. The penalty for not having health insurance, as of 2016 is $695 per adult and $347.50 per child for the year. The maximum penalty per family is $2,085 or 2.5% of yearly household income, but not exceeding total yearly premium for the national average price of a Bronze plan sold through the Marketplace. The flat penalty will be adjusted for inflation. If you owe a penalty, it will be assessed on your income tax return.

Association and Group Insurance

If you cannot get health insurance benefits through regular employment or if you are not able to convert a group policy to an individual one when you leave a job, you may be able to purchase group insurance through an association. The most common groups offering insurance to members are trade and professional associations, labor unions, business groups, civic organizations, and college alumni associations. Association and group insurance is usually cheaper than buying coverage on your own, because the group can often negotiate a better discount from an insurer than an individual.

Individual Policies

If you have to buy an individual medical insurance policy, you can search for one through the Health Insurance Marketplace. The Health Insurance Marketplace, also called the Exchange, opened in October, 2013. People are required to wait for annual open enrollment periods to apply for new healthcare coverage. Open enrollment for 2016 ended on January 31, 2016 for benefits to become effective as soon as March 1, 2016. People who are uninsured or who buy their own, private health insurance can use the exchange to search for affordable healthcare plans, based on their income and other factors. Even if you are covered by your spouse’s employer-sponsored plan, you can still search for coverage through the exchange. However, if you are eligible for coverage under your spouse’s employer-sponsored plan, you most likely won't be eligible for a healthcare subsidy. Access the Health Insurance Marketplace at www.healthcare.gov or call 1-800-318-2596. You don’t have to purchase health insurance through the Exchange. You can also search for private insurance and compare rates on your own or through an insurance broker.

Keep in mind, too, that if your business has 50 or more full-time equivalent employees (FTE), you are mandated by the Affordable Care Act to provide health insurance for at least 95 percent of them and their dependants up to age 26, or you will be required to pay a fee. Employer penalties for failing to provide health insurance to employees begins in 2015-2016.