My wife is leaving her teaching job and becoming an independent consultant.?

Question

She will rely on my health care for now. If I too was to pursue independent contract work, what options do we have to ensure we still have quality health care since we would no longer be covered under an employers plan?

Answer 1

Hmmmm, there really are no GOOD coverages anymore when it comes to health insurance. Being self employed can be hard on the pocketbook from paying such high premiums as most insurance companies quote according to age and how many people are insured.  Whichever insurance you choose, I would suggest AFLAC's supplemental insurance.  It's extremely cheap and pays cash to you, not the doctor.  I've had it along with my regular insurance and it really puts money back in your pocket.  You get $50 a year just for having a check up.

Answer 2

Move to Canada or the U.K.

Sad, but true.

Answer 3

That is a good idea.

Answer 4

You could go on COBRA from your former employer, but you can only stay on it for 36 months is it is a large employer or 9 months for a small employer (under 20 employees).

If you are healthy you could apply for an individual policy.  It is hard to say if the rates will be higher or not.  That would depend on how much of your premium your employer pays towards your premium, also group policies offer maternity and individual policies have that as an add on.  Maternity is very expensive so if you don't need it then an individual policy could be less expensive than a group policy.  

If you would decide to employ more than 2 employees, you could also form your own group and apply for insurance that way.  

Contact an independent agent and get some quotes.

Answer 5

You could still get great health insurance, you'd just have to pay a lot more money for it.  Probably at least double, if not triple what you pay now.  Most employers get group policy discounts and pay a good portion of your monthly premiums.  For instance, it costs me about $200 a month to insure myself and my husband.  If my employer wasn't paying any of it, it would cost me about $600.

Answer 6

You would have to buy you own.  And if you are both healthy, non-smokers and not having children, it should be reasonable.  Before you fly solo also, you need to check this out and make sure that your new income will be enough to cover this added expense....Good luck and congratulations.

Answer 7

your rate of paying yourself is going to basically triple. companies get discounts on the fact that they have a lot of people. welcome to the real world now.

Answer 8

First: COBRA.  When you leave a job, you can continue on your former employer's health insurance for anywhere between 18 and 36 months.  You will experience a price increase between 2% and 15%, depending on the size of your former employer and, of course, the state you live it.

Second: Don't move to another country.  The US has the best health care in the world, which is why the people who can afford it, come here.  Health Insurance, and thus affording it, can be tricky, but if you don't want to enroll in COBRA, talk to an independant Broker, and they can help you find something that meets your needs.

Third: Depending on what State you live in, you may find you can increase your benefits and decrease your expense.  That's right.  There are new plans on the market that, properly used, can DRAMATICALLY improve your coverage while decreasing the pain in your pocketbook.

When looking for a Broker, always go with someone who is part of the Better Business Bureau.  It isn't a foolproof mark, but it is a good start.

Answer 9

What type of independant consultant?  If you are talking about things like Tupperware or Premier jewelry - they have health plans for thier consultants, they are just probably not as good as yours.

Answer 10

There is a general misconception that group insurance is less costly than individual/family plans. The reality is that individual plans are, on average, half the cost of similar group coverage.

Simply prove this to yourself by visiting your local, online Blue Cross in the state you reside. The website will have pricing. Compare this rate to the COBRA rate or true dependent rate you are charged to add a dependent on your plan. It's important to know whether your employer is paying anything toward the real cost of dependent coverage. The HR person will know.

The downside to individual/family plans are that they are medically underwritten, meaning certain pre-existing conditions may be waived from coverage. If you are basically healthy, it will almost always be less expensive to buy an individual plan.

Answer 11

you could go with plan on COBRA for 18 months after you leave job, you would pay 102% of the full premium, which if it's just Husb and wife, might be $600-800/month, a full family plan might be $900-1200/mo - after that you would have to find you own insurance - might be able to get a group plan thru a business association, but you're still going to be paying the full premium, as opposed to typical 20-30% when you work for a company that pays most of the premium, and if you have any existing conditions, you might not be able to get affordable coverage or coverage at all