I got the job! Now, what?

December 8, 2005 9:43 AM

So, I was just offered a job. It's a 12 month contract that will be going perm in the next year. So, first order of business is to find health insurance. Help me find the best option for me.

Since I've never been a contractor, I don't know where to start. I am currently a full time employee with the company I've been with for the past 4 years. I'm married with no kids and we live in Georgia. My wife has her own business (no employees) and her business is set up as an LLC. Up until now, she's been listed under my health insurance plan at work. Should we set something up under her business? I know we can't do a group plan, but maybe a flexible spending account or something like that? Oh yeah, I should also add that we are actively trying to have kids, so a pregnancy in the next year is a real possibility.

Also, are there any other financial benefits or pitfalls to being a contractor that I should be thinking about?

I'll be contacting our accountant today to talk about this, but wanted to ask here first.

Thanks!

posted by fletchmuy to Work & Money (5 answers total)

Taking COBRA from your current job (if it's available) is your first option.
posted by scody at 10:53 AM on December 8, 2005

COBRA almost always costs more than the same insurance purchased independently. If you're a working geek and a member of the ACM there's some links off their website. Whether or not it's a better deal than you can just get straight to www.healthinsurance.com I could not tell you.

A little googling should find you some Blue Cross-selling agents in your area. When I was 31 I purchased a middling-good plan direct and paid about $110 a month as a non-smoker.
posted by phearlez at 11:40 AM on December 8, 2005

One nice thing about Blue Cross (at least here in NM) is that they'll let you submit a hypothetical application so that you can determine what the cost of coverage without the fear of being rejected by them (which looks really bad, and could prevent you from getting coverage elsewhere). I'd talk to an insurance agent about this possibility.
I currently have BCBS at about $150/month, by the by. The possibility of pregnancy could make things a lot more expensive, though.
posted by Sara Anne at 12:52 PM on December 8, 2005

If you do buy independent insurance, consider a fairly high deductible. If you're willing to pay the first thousand or two dollars yourself, the price probably drops significantly. What you really want to protect yourself against is the relatively rare cases of a really bad illness or accident.

You also might consider buying long-term disabilty insurance, but that's probably something for another Q&A.
posted by WestCoaster at 1:03 PM on December 8, 2005

There is an excellent book on how to purchase health insurance...I recommend it to anybody who needs to do this alone. It is called "The New Health Insurance Solution," by Paul Zane Pilzer. It is really no-nonsense and real world in terms of the advice it gives.
posted by soulbarn at 4:17 PM on December 14, 2005