What's the best way to get my own health insurance?

September 12, 2005 3:08 PM

What would be the best way for me to maintain health insurance coverage while I'm working as a contractor?

I'm considering leaving my current full-time position, with benefits, in order to take a job at another company with much more interesting prospects for me, career-wise. The downside is that the first six months of the job would have me working as a contractor, I assume without health insurance. That being the case, what's the most practical way for me to maintain health insurance for myself? I've heard about COBRA but I don't know anything about it.

I'm 25, male, and extremely healthy ordinarily. I'd really rather not have to spend an insane amount of money if there are ways to get basic/simple coverage for less.

posted by autojack to Health & Fitness (8 answers total)

A couple of previous discussions here (1, 2). In a nutshell, if you already have health coverage through your full-time work, you are likely to be eligible for COBRA coverage. COBRA is basically the continuation of your current employer-sponsored coverage, but you will assume its full cost (plus a small "administrative" fee). Health insurance costs in general have gone up across the board in recent years, so be prepared if the monthly cost runs into the hundreds of dollars.

You could also consider temporary/short-term plans, which I believe come in 3-, 6-, and 9-month increments. There should be more info in those previous threads.
posted by scody at 3:26 PM on September 12, 2005

I've had coverage with HumanaOne--it was great for a short time. (I have some pre-existings that weren't covered, though). If you are normally healthy, you would probably do much better with it than I did.
posted by 6:1 at 4:09 PM on September 12, 2005

Response by poster: Only hundreds for COBRA? One friend said it might be like, $1k+ per month. That's probably not in the budget...
posted by autojack at 5:18 PM on September 12, 2005

Well, it could be that much (or close to it) for COBRA for an exceptionally good, full family plan (i.e., spouse + child). If it's just coverage for yourself, it will be lower, but still not particularly cheap. As I think I mentioned in an earlier discussion, if I were to take COBRA now from my employer it would be at least $400 a month. The only way to get a real price, though, is to ask your human resources dept.
posted by scody at 5:33 PM on September 12, 2005

Just further proof that COBRA prices vary- at my old job, were I to take COBRA benefits, it would have been $288 per month. Check with your HR department for sure.
posted by elisabeth r at 5:52 PM on September 12, 2005

Response by poster: OK, I'll check - after I give my notice ;-)

Thanks for the info, I'll read the other discussions and go from there.
posted by autojack at 6:09 PM on September 12, 2005

FYI, when I left a job and used COBRA, I was misquoted by both the employer and the health insurance company. Total was around $1200/month, I was quoted $800 something.
posted by bh at 6:19 PM on September 12, 2005

Note that COBRA benefits are good for 18 months maximum. If you only need coverage for six months, then it is probably the best option.

If you wind up working as a contractor for a longer period of time, look into joining a group or association that will enable you to buy insurance coverage at group rates. One such group is Working Today; there are many others.
posted by enrevanche at 3:42 AM on September 13, 2005