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Independent contractor and health insurance

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  • Independent contractor and health insurance

    I am looking at some independent contractor work and would need to buy my family’s health insurance.  I went to healthcare.gov and the policies ranged from 1.1-2k month with 14k deductibles towards the lower range of cost and high copays in my area.  Was wondering what others were doing and if there were any cheaper options out there?  Don’t know how people with lower income are able to afford such poor policies?

  • #2
    People with lower incomes have ratably lower premiums. The prem's that you are finding sound typical. You will use an HSA-qualified plan?
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      1900/mo for healthy family of 6 on the “silver” type plan

      Ridiculous. Looking now to change

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      • #4




        1900/mo for healthy family of 6 on the “silver” type plan

        Ridiculous. Looking now to change
        Click to expand...


        That is ridiculous.  What were you thinking of changing to?

        Jfox: yes I will use a high deductible plan.  Can I use my HSA to pay the insurance premiums or only expenses?  How about any tax savings at the end of the year given the high costs?

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        • #5







          1900/mo for healthy family of 6 on the “silver” type plan

          Ridiculous. Looking now to change
          Click to expand…


          That is ridiculous.  What were you thinking of changing to?

          Jfox: yes I will use a high deductible plan.  Can I use my HSA to pay the insurance premiums or only expenses?  How about any tax savings at the end of the year given the high costs?
          Click to expand...


          No, you cannot use the HSA to pay insurance premiums but, as a self-employed individual, SEHI (Self-Employed Health Ins) is deductible "above the line". Tax savings arise from your contribution to the HSA and the growth on investments inside the account.
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Interesting that in my neck of the woods, a HSA-compliant plan, which is what I really wanted, has almost $700/month premium!!  I didn't think it was worth paying that much just to get a HSA plan.  Went with a cheaper non-HSA policy instead.  No health issues.

            I'd have thought that if you elect a higher deductible, the premium should be low.  It's crazy out there!

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            • #7
              A self-employed individual should model the premium, deductible and co-insurance of different health insurance plans based on their likely usage.

              Sometimes the modelled total OOP may be similar with higher premium/lower deductible plans. You only need a $2700 deductible (2018) for a married HDHP plan to be HSA eligible.

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              • #8




                A self-employed individual should model the premium, deductible and co-insurance of different health insurance plans based on their likely usage.

                Sometimes the modelled total OOP may be similar with higher premium/lower deductible plans. You only need a $2700 deductible (2018) for a married HDHP plan to be HSA eligible.
                Click to expand...


                Those options usually do balance out in the end, ie, premium+deductible, its a pick your poison situation. When I got our HSA eligible plan, they were all crazy high deductibles, I would have loved to see something in that range. Many were, but not HSA eligible, strange system we have.

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                • #9
                  Some years ago I had an individual QHDHP plan with a $1500 deductible.

                  The difference in premiums were well < $1500 compared to a similar plan with a $3000 deductible that I was certain to hit.

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                  • #10
                    Is it possible to buy cheaper plans directly from the insurance company or a broker and avoid the healthcare.gov site?

                    For a family of 5, once you go over a little more than 100k, the price goes up dramatically for a very bare bones policy!  Like 1300/month with huge deductible and copays.

                    I read that most who use healthcare.gov get lowered rates.  What is someone with higher income to do to get a decent policy if self employed or independent contractor?

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                    • #11
                      Check with your state medical association. Sometimes they have a group plan you can get into.

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                      • #12
                        Rad doc what state are you in

                        the plans in obama care narrow network - watch out for that

                        call local insurance agents

                        you would be surprised that they know more about other plans outside obamacare

                        I bought a plan in missouri bcbs 1000 deductible with 0% coinsurance for a family of four for 1190$.

                        this was through a trumpcare plan from the Missouri chamber of commerce - through my local county chamber of commerce

                        I hope this helps

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                        • #13
                          You will *probably* want an HSA-compatible high deductible health plan (HDHP).

                          The average family who bought health insurance in the exchange paid $19,600 or so on it in 2018: http://www.ncsl.org/research/health/health-insurance-premiums.aspx other sources have quoted different amounts, but it remains in or around the mid-teens.

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