Ask HN: Why don't accelerators offer health care benefits? | Hacker News Reader

Ask HN: Why don't accelerators offer health care benefits?

4 pointscanadaduane6 comments

Many entrepreneurs are willing to work for nothing, but health risk is a big question mark. From what I understand in the US, many potential female entrepreneurs are not willing to put their own or their family's health on the line, and therefore do not take the leap. Why aren't accelerators filling this gap?

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The premise that accelerators exist to help people "take the leap" is flawed. No one quits a lucrative job for a few thousand dollars in stipend, and health insurance wouldn't change this. People quit their jobs because the opportunity is too great to resist, whether financially or spiritually (hopefully both). People -- teams, usually -- join accelerators once they have already committed to making this leap, generally.

If you're not ready to take that kind of plunge in terms of general salary, health insurance for 90 days probably isn't going to change that.

In such a case, a good alternative is to join a well- or reasonably well-funded startup.

Short term health insurance doesn't offer much protection, and most accelerators are aimed at a short term commitment.

However, I'd think it would be great if an accelerator would act as an umbrella organization, letting startups buy cheaper health insurance while small, through aggregation, even after the initial accelerator commitment is done.

You can already do that now. My startup of 2 people just got a group policy from Blue Cross Blue Shield. Outside of NY and California, those policies could be had for as little as $500 per month (that's total, for two people.) In NJ/NY, we're paying about $900 per month for 3 people. (we have one child on the plan as a dependent.) If the average accelerator gives you $20K for three months, then spend $2000-$3000 and buy insurance for those three months.

Most people don't know enough about health insurance (because they're usually getting it from their employer) but getting group insurance is possible even with a "group" of just 2. You just have to do your homework.

Perhaps something accelerators could do is perhaps provide some guidance on the HR side of startups, including how to deal with employee benefits.

For anyone under 26 there's always the option of staying on your parents insurance...

If you quit a job to form your startup, you can get COBRA for 18 months.

How is gender relevant in this case? Accelerators are not jobs. They're designed to accelerate your own company.

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