A Micro-Business Story: Access to Affordable Health Care

Christine Krupinski
CK Art and Design, Fairfax, Virginia

“I worked in an advertising agency many moons ago in Manhattan. When my husband got a job with Time Life Books in Alexandria, Virginia, we moved down here. I couldn't find a position even similar to what I did in New York, so I started concentrating on my fine art and watercolors. Then three kids came along and I became a full-time mom for the years up until 1995. Then, in 1995, I was widowed and left with a 12, 10 and 8 year old.

I hadn't been in the work force for a few years and was faced with a dilemma. I knew beyond the shadow of a doubt that I didn’t want my kids coming home to an empty house. I decided to make a go of a fine art career, working from home. I actually faired quite well, gaining national acclaim for my watercolors. It was a roller coaster ride though, and there was never a consistent income. The stress was way too much. Now I truly have an understanding of the ‘starving artist’ concept! I knew that I had to make a change.

I went back to school so that I could familiarize myself with the new computer technology associated with design. I have now had a thriving design business for three years. I offer a pretty broad scope of design from print media to Web design. I offer a lot of versatility including scanning, photography, illustration and printing.

During the time that I have been self-employed, first as a fine artist, then as a designer, I have paid my own and my family’s health insurance. I could have continued insurance from my husband’s company after his death, but it would have cost me around $900.00 per month – in 1995. I shopped around, and after being with one insurance company for several years, their premiums topped $750.00 per month. I left them, and the same thing happened again – I started paying around $450.00 with another company, until their premiums rose to $900.00 a month. That was more than my mortgage payment!

I left that company, and now pay about $400.00 a month, or $4,800.00 a year for health insurance coverage. Come tax season, I cannot deduct that $4,800.00 as a business expense because I am a sole proprietor – but every other business can deduct the expense. Instead, I pay 15.3 percent self-employment tax on my premiums. That’s an extra $734.00 that I could have reinvested in my business, but instead am paying, essentially, in extra health care costs. I would love to buy new graphic design tools for my business, but don’t have the money to. If I were able to save this extra $734.00, I would be able to purchase the tools, putting that money back into the economy while bettering my business.

You always hear about government supporting small business, but here’s just one example of the huge disparities. Eliminating the self-employment tax on health insurance premiums would level that playing field.”