[consulting] insurance

[Cameron Barrett]

I had this same issue a while back and came to the conclusion that I could
no longer work for myself. Insuring myself, my wife and my 3-year old
daughter was going to cost far too much when buying insurance on the
private market. I worked out a deal where the company I was consulting for
was able to put me on payroll and keep me as a remote worker. My effective
hourly rate dropped but the group-plan health benefits I get were
drastically cheaper than I would be able to afford on the private market.

In the tri-state area (NY, NJ, CT) there is Freelancer's Union but I've
been told their health plans are pretty awful.

Every state's laws are different, so you have to do a lot of research. But
it may be possible to turn your sole proprietorship into a corporation and
thus be eligible for group plan insurance. Some states allow a
single-employee group plan and others do not. Some require two people to be
employed by your company before you are eligible for a group plan. Most
insurance companies will require proof the company has been in business for
6 months or 12 months and show proof of revenue.

Another approach you might take is to find a staffing agency that is
willing to allow you to funnel your consulting work through them in
exchange for a cut of your hourly pay. You are then technically an employee
of theirs and eligible for whatever group insurance plan they offer.

If you have any military background, there are health insurance options
available through some of the alumni groups for the various branches of the
military. I recall there is also a military family association (I don't
recall the name of it) that offers health insurance as long as you maintain
your annual dues as a supporter.

Lastly, you might just want to wait until the federal government's "health
exchanges" are open for business, starting in January 2014. These are the
key component of Obama's health care reform that was passed earlier this
year, and will allow any American to enroll in a federally-managed group
plan.

The health care industry is horribly broken in this country and is set up
in a way that unfairly penalizes American workers who choose to work for
themselves. The entire market is skewed towards the corporation.

Hope this helps.

Cameron Barrett
http://cameronbarrett.com



On Mon, 12 Jul 2010 12:32:34 -0400, Christopher Jones
<cjones at partialflow.com> wrote:
> All, I'd like some advice about health insurance. How do you 1099
> contractors out there deal with this issue? I'm investigating options
> for insuring my family (two adults and two kids). 
> 
> In particular, I had wondered if there were a union, or some kind of
> cooperative I could join.