Buying health insurance (self-employed)

[Amethyst]

If self-employed, what is the best way to buy health insurance? DH recently went from employee to independent contractor and we no longer have insurance through an employer. It looks like we *can* buy our insurance through the marketplace, but is there a better way? Specifically asking about self-employed. Thanks.

[mathnerd]

If your DH belongs to a professional organization, then they will sell you insurance and it would normally be less expensive than through the marketplace. since he is an independent contractor, he probably already has a membership through which he might be attending seminars, conferences and doing other professional development stuff... that is the first place to check.

Another option is COBRA health insurance - the former employer will convey the loss of coverage to the health insurance company and then you have the option to sign up for it - you have 60 days to do so.

[Eos]

Dh and I are self-employed and we've had a good experience buying it through the marketplace.  It's easy and when I've needed help the people on the phones are very helpful and friendly.  We've always been self-employed so can't speak to the transition from employed to contract. 

[Carrie12345]

I’ve heard people say they’ve found better policies (price or coverage) by shopping direct from an insurance company or through a broker, but that hasn’t been my experience.

We’ve been going through the marketplace since it started. (Sometimes with dh, sometimes he’s had employer coverage for himself.) I pour over options every single year. In my area, the most readily accepted insurance (BCBS) has pretty much identical options whether through the marketplace or direct.  For me, the difference is that the marketplace can provide subsidies (some years we qualify, some we don’t) and refunds if the plan didn’t spend at least 80% in coverage for all of the people (public, not family) on that plan. My oversimplification may not be precise there, but that’s the gist.

Because laws vary, it might not be apples to apples everywhere, so it’s worth comparing.But it’s consistently been best for us.  If dh accepts an upcoming job offer, we’ll all be ineligible for the marketplace and I’m very anxious about it! I haven’t had someone else limit my options in years!

[Amethyst]

7 hours ago, mathnerd said:

If your DH belongs to a professional organization, then they will sell you insurance and it would normally be less expensive than through the marketplace. since he is an independent contractor, he probably already has a membership through which he might be attending seminars, conferences and doing other professional development stuff... that is the first place to check.

Another option is COBRA health insurance - the former employer will convey the loss of coverage to the health insurance company and then you have the option to sign up for it - you have 60 days to do so.

Good idea about his professional organization. That’s probably where we’ll look next. He’d have to join. He has avoided joining for political reasons. But maybe this will be an incentive.  
 

We did COBRA for a few months but it’s outrageously expensive. 

[Lanny]

5 minutes ago, Amethyst said:

Good idea about his professional organization. That’s probably where we’ll look next. He’d have to join. He has avoided joining for political reasons. But maybe this will be an incentive.  
 

We did COBRA for a few months but it’s outrageously expensive. 

I was a "Member" of IEEE for many years. One of the reasons I joined was to be able to participate in their "Group" insurance policies. I believe the cost may have been somewhat lower, but the coverage more extensive.  I hope your DH will look into the professional organization(s) available to him.

[gardenmom5]

15 hours ago, Amethyst said:

If self-employed, what is the best way to buy health insurance? DH recently went from employee to independent contractor and we no longer have insurance through an employer. It looks like we *can* buy our insurance through the marketplace, but is there a better way? Specifically asking about self-employed. Thanks.

What state are you in?  the laws and options vary by state.  Some states have good options - and others really don't.   

Dh does insurance on the individual market (and only the individual market - right now he does multiple vendors in WA and ID).   The marketplace may or may not be the best place (there are multiple variables that would determine that. e.g. income, and available insurance policies,  etc.).  At least once a month he will vent to me about clients who tried to sign up on it, but screwed themselves by filling things out incorrectly. (medicare is even worse.) Then they end calling him and he is able to go in and fixes it.

If you can find someone who specializes in the individual market in your state (and preferably represents multiple insurance companies so you're not locked into one), that can be very worthwhile.  it's open enrollment right now - but quitting a job and becoming self-employed brings a "special enrollment period" - so you can sign up other times too.

[Carol in Cal.]

FWIW, I know someone who brokers medical insurance and says that he can guide the marketplace process with people and help them find their best plan and deals, and that they don’t pay for this service—rather he is paid by the insurance companies.  I don’t see a downside to doing both in parallel—working with someone you have reason to trust but also checking things out yourself to be able to ask intelligent questions about the recommendation.  That’s what I would do.