MADISON'S STARTINGBLOCK ADDS HEALTH INSURANCE FOR CO-WORKERS BUSINESS

Entrepreneurs who run startups or nonprofits out of Madison business accelerator and co-working space StartingBlock can now get a new benefit from their membership: health insurance.

The co-working space and business accelerator, located at 821 E Washington Ave., offers a space to rent desks or offices, share conference rooms and kitchens, and network and attend workshops with other entrepreneurs. But it has also sought other ways to help its entrepreneurs be better off together than they are alone. Last year, StartingBlock began offering dental, vision and life insurance, as well as telehealth services.

Now, members can sign up for health insurance too. Through the new pilot program, a partnership with M3 Insurance and Quartz, StartingBlock entrepreneurs can purchase their own coverage and select plans to offer their employees. Each company can select the type of coverage that fits their startup, at costs designed to be affordable.

"This partnership allows us to bring accessible, high-quality health care to more of our neighbors in Wisconsin," said Christina Ott, vice president of product innovation for Quartz.

According to StartingBlock, it's the first co-working space in Wisconsin to offer insurance, and one of just a few across the country.

Mark Richardson, co-chair of StartingBlock's board, anticipates the move will bring more people into entrepreneurship, including those who might otherwise hold onto day jobs just to keep employer-sponsored health care.

"Anecdotally we know that losing healthcare coverage is a major consideration for would-be entrepreneurs, especially the two fastest growing segments - entrepreneurs of color, and those over 40," Richardson said.

StartingBlock wanted to eliminate that barrier, executive director Nora Roughen-Schmidt said in a press release. "If we want to make the entrepreneurial ecosystem in Madison and Dane County truly accessible for all people interested in entrepreneurship, we have to start totally supporting entrepreneurial needs - not just talking about supporting them," she said. "That includes providing healthcare options."

The move is designed not just to make it easier for entrepreneurs to strike out on their own, but to help startups attract employees. According to StartingBlock, the expense for small business owners of offering benefits is second only to payroll costs.

Meanwhile, shopping for plans can be complicated and time-consuming, and small businesses often face high rates. "By pooling and leveraging our entire member base we were able to simplify the process and bring options to our members," Richardson said. "That's one less thing for them to worry about, and they can focus on building their businesses."

Nick Myers, founder and CEO of health technology startup RedFox AI, is among those who now qualify for insurance through StartingBlock. When he quit his full-time job as a marketing director in 2019, he was 25, just young enough to get on his mom's health insurance plan for several months. When he turned 26, he signed up for his own plan through the health insurance marketplace created by the Affordable Care Act, with the help of a friend who helped him understand the options.

"If you're someone who has never had to purchase health insurance on your own before ... it could be a bit confusing," Myers said. Still, he was grateful for what was, until now, his only option. "If the Marketplace wasn't around, I don't know what I'd be doing right now ... previous to the (StartingBlock) announcement."

When Myers learned in December that StartingBlock would offer its own insurance, he was "overjoyed," he said. He and a colleague are reviewing the plans and rates to decide whether to switch.