With only two employees, your company is classified as a small company. You may apply for small business health insurance but the prices may be individually rated. This means that the cost of your business health insurance will depend on your health condition and that of your employee. Considering the medical condition of your employee, the cost of your business health insurance might be high. You may even be rejected because of your employee’s condition. Even though you are setting up an LLC, this has no effect on you and your employee’s application for business health insurance. Health insurance companies usually underwrite the employees of small companies such as yours, individually. You might get health insurance for your employee through the Health Insurance Portability and Accountability Act or HIPAA. This federal law mandates insurance companies to cover pre-eisting conditions or medical problems that they have prior to buying a health plan. Your employee may be eligible for HIPAA in Florida if he had health insurance coverage for at least 18 months. He is also eligible if the coverage ended through employment. He is eligible if he has maimized the benefits of COBRA or the state continuation rights, and have no gaps in health coverage for more than 63 days, whether through an individual or business health insurance plan. If you think your employee satisfies these eligibility requirements, then he can apply for individual health coverage. Because of HIPAA, health insurance companies cannot turn him down. The insurer that can offer him HIPAA will depend on the type of his business health insurance. You can also work with an independent insurance agent who represents various health insurance companies. The Florida Office of Insurance Regulation may also provide more information regarding HIPAA. There is also the health insurance being offered by the National Association for the Self Employed. You might want to check their business health insurances for the self-employed and small company employers. - June 16, 2009 @ 3:31 pm