Key Takeaways
Finding health care options as an IT Contractor can be complicated but we’ve found some affordable alternatives to help you in your IT journey.
There are 3 key healthcare options for IT Contractors:
- Individual/Group Insurance Plans
- Healthcare Alternatives (Mira)
- Spouse/Partner Insurance
Healthcare options for IT Contractors:
When starting your own company, it’s important to consider healthcare options for yourself. Here are some crucial considerations:
a. Research and Compare:
Explore different healthcare plans available in your region. Consider factors like coverage, network providers, premiums, deductibles, and out-of-pocket expenses. Compare multiple options to find the most suitable plan for your needs and budget.
b. Individual vs. Group Plans:
Determine whether you want to offer individual plans to each member of your team or establish a group plan. Individual insurance can easily be found on the public market or using resources such as the Fre
elance Union which makes it easy to compare health care options.
Group plans can often provide better coverage and rates due to collective bargaining power if you have more than 1 employee as many insurance companies have a requirement of a minimum 2 employees.
c. Compliance with Laws:
Familiarize yourself with healthcare laws and regulations in your country or state. Understand any obligations you have as an employer regarding healthcare coverage and ensure you comply with the requirements.
d. Health Savings Accounts (HSAs):
Consider offering HSAs, which are tax-advantaged savings accounts that can be used to pay for qualified medical expenses.
For 2022, if you have an HDHP, you can contribute up to $3,650 for self-only coverage and up to $7,300 for family coverage into an HSA. HSA funds roll over from year to year if you don’t spend them. An HSA may earn interest or other earnings, which are not taxable. (Source: HealthCare.Gov)
e. Healthcare Alternatives (Mira)
To reduce the burden of basic healthcare services, several companies offer fixed prices via partners for certain healthcare services. For example, Mira offers a monthly membership of $45 and a fixed cost for various healthcare services as described below. This is a great cost-saving vessel if combined with an HSA and health insurance account.
This can save IT contractors significant amounts of money without having to work towards their deductible.
f. Spouse/Partner
The final option available is if you are married/in a domestic partnership to utilize your partner’s benefits.
No longer are the days of being stranded if your employer does not provide health insurance. Today you have a variety of options that allow you to combine healthcare options.
If you’re ready to start your journey as a C2C contractor, take a look at our step-by-step guide on starting your journey.
