The health insurance experience varies greatly from one state to the next, so my take is based solely on Maryland. If you are young, single, and have never had

The health insurance experience varies greatly from one state to the next, so my take is based solely on Maryland. If you are young, single, and have never had any major health problems then there is no problem at all. Your health insurance will be cheaper than your car insurance. Also, current federal law allows you to stay on your parents policy until age 26(personally, I say cut the umbilical cord already). If your startup is going to purchase health insurance for multiple people, then you can possibly get into your state's small group plan. You will pay more but it is group insurance that will cover most pre-existing conditions, subject to whatever your state prescribes. If you have a family it is a bit more difficult but if there have been no major health problems then it should not be too much of a problem. I am in the process of starting my own company and I have gotten quotes for me, wife, and 3 small kids for about 300 a month. The deductible is higher than I have now but is reasonable. So, no, I personally don't think it is a problem. A lot of people may use it as an excuse, though.