The benefits of a locum tenens life are vast. From flexibility in your schedule and competitive pay to the ability to travel and do meaningful work, locum tenens can be a great fit for many physicians. However, there are a few steps you’ll need to take to be an independent contractor. One of those is to shop for and purchase your own health insurance.  

As a premier healthcare staffing agency, TinkBird provides these insights on getting health insurance for locum tenens professionals.

Working as an independent contractor

Most locum tenens physicians work as independent contractors, meaning you essentially own a business. This gives you the freedom to select who you work for, your schedule and the length of your contract. 

This can be freeing for burned-out physicians and physician assistants. Few jobs offer flexibility, upward career trajectory, professional development and the ability to travel. Locum tenens positions do all this and more.

As an independent contractor, you are responsible for the administrative side of your business. You will receive a 1099 from your employer and pay your taxes like a business. This includes paying quarterly income taxes; contributing to a retirement account; and purchasing health insurance, disability insurance and life insurance. Once you have these systems in place, they are relatively easy to maintain. 

Medical coverage for locum tenens

Some locum tenens providers can get health insurance under their spouse’s health plan or through another part-time job. This is the easiest way to obtain medical coverage. If you do not qualify for such plans, you will need to shop around for health insurance for locum tenens.

Dozens of health plans are available through the Health Insurance Marketplace or directly from a private health insurance company, like Cigna, United Healthcare, etc. If you need guidance, a health insurance broker can show you options and make recommendations. Brokers usually represent multiple insurers’ products and can offer plans that meet your requirements.

Shopping for your own health insurance

If the idea of shopping for health insurance seems overwhelming, don’t worry. It actually offers some nice perks – giving you the ability to choose a plan with benefits that are important to you. 

• Flexibility and control – Shopping for your own health insurance coverage means you can choose the best coverage to fit your preferences. You can select a deductible, coverage and additional services (dental, vision) that fit your budget and needs. 
• Portability – You can select a plan that covers you despite moving to different assignments. 
• Tax-deductible premiums – If you do not have access to employer-sponsored coverage or insurance through your spouse’s employer, your premiums are tax deductible.

Be prepared when health insurance shopping

You may encounter some challenges as you are searching for health insurance:

• Higher upfront costs – Large employers typically have greater bargaining power with insurers. Employer-sponsored health insurance is often subsidized, in part, by employers. As an independent contractor, you will have to negotiate and subsidize your own healthcare. 
• Complex plans – Analyzing the variety of plan options, coverage details, deductibles and co-pays can be difficult and feel challenging or overwhelming. If so, consider consulting with a broker.
• Time required for research – To find a health insurance plan that meets your needs, research is a must. Comparing plans and actual costs takes time. 

Health insurance options for locum tenens 

There are many different health insurance options available to locums physicians. Plan availability depends on your geographic location. Your age and medical history will influence your premium and deductible. 

Different plans are designed to meet different needs. You can select a tiered plan to fit your budget and healthcare coverage needs. Plans are categorized by levels – usually Bronze, Silver, Gold and Platinum. 

Plan levels do not impact the quality of care provided but instead communicate the level of cost sharing for covered services. For example, Bronze plans generally have a lower premium. They pay 60% and require you to pay 40% with a high deductible. Platinum plans pay 90% and require you to pay 10% with a low deductible, but the premium is usually high.

Generally, health insurance plans include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Exclusive Provider Organizations (EPOs) and Point-of-Service (POS) plans. 

The main difference between these plans is in how stringently they require the use of in-network providers or penalize the use of out-of-network providers. 

Ways to obtain health insurance as a locum provider

While you may not have the same bargaining power as an employer, there are viable health insurance options available for locum tenens professionals. 

Insurance through a spouse or part-time job

As mentioned above, the easiest option to obtain health insurance for locum tenens is through a spouse or part-time job. If those are not options for you, then consider the options below.

Temporary insurance through COBRA

COBRA offers temporary, short-term insurance at a higher price than your last employer to help bridge the gap between jobs. 

HealthCare.gov

In 2014, the ACA created the Health Insurance Marketplace for people to shop for health insurance options. Today, HealthCare.gov is used by many independent contractors and locum tenens professionals to find health insurance. 

Before you choose a plan, review the plans available in your state and compare options (Bronze, Silver, Gold or Platinum) to select the best coverage for you, your family and your budget. Remember, you will pay an insurance premium every month whether you use your insurance or not. You may also have to pay to meet your deductible when you receive care. 

You can find HMO, PPO, POS and EPO insurance policies on the site. 

Private insurers

Private insurers are another option. You can visit the websites of major private health insurance companies and review health benefits in your geographic area based on coverage and deductible. 

Plans and premiums will vary depending on your geographic location and age. The price quoted on the website is the lowest possible option and likely not the actual price you will pay after you share your medical history with the insurer.

Private insurance is used by a large number of locum tenens professionals, but comparing plans can be challenging. Look for the coverage you need at a price you can afford, then compare options. 

You can purchase private insurance through the Health Insurance Marketplace, directly from the insurer or a health insurance broker.  

Health insurance broker

If you are purchasing a healthcare plan on your own for the first time or have specific questions about your healthcare coverage, using a health insurance broker may be a good option. Working with a broker could save you time and money.

Brokers can search for options that meet your specific needs and budget. Since they work in this market every day, they can find options faster and answer any questions you have. Select a broker or agent who can obtain quotes from multiple insurers for the best selection. 

Professional association coverage

As part of a professional medical association, you may be able to acquire health insurance at a discounted rate. The American Medical Association, Independent Contractors Benefits Association, AARP, your local Chamber of Commerce and the National Association for the Self-Employed are just a few options to investigate. 

The value of locum tenens health insurance

Health insurance is a necessity for healthcare providers, especially locum tenens doctors and physician assistants. While obtaining it is more involved than signing up for an employer’s plan, there are numerous ways to research and select a suitable health plan. 

Tinkbird’s representatives are ready to discuss how you can get started as a locum tenens provider. We look forward to helping you embark on an exciting new chapter in your medical career!