My husband and I run a company together (technically it's his, I work for free.). We are not incorporation, sole prop. We have a health plan with BC/BS, which we do pay dearly for but not through our company. Because it technically has only one employee, it was actually cheaper to buy a private plan. The good thing is that this comes off our taxes as a direct medical expense, which seems to work out better than having just the deduction. Check it out with an accountant, but it's worked out well for us.