You worked for your electrical license, started your own business, and gave up the company health plan along the way. Here's how electricians working for themselves are finding solid coverage while keeping the monthly bill under control.
Hi, I'm Sam. I'm a licensed health insurance broker in Tampa, and I help clients by phone across the 36 states where I hold a license. After speaking with electricians about their insurance, I've noticed that many of them end up facing a very similar situation.
You put in the time learning the trade as an apprentice, then worked your way up to journeyman, often with an electrical contractor who provided group health insurance. Eventually, you earned your license and started taking your own jobs, perhaps with a work van and a few reliable builders sending projects your way. Running the business yourself is rewarding, but when open enrollment arrives, you discover that replacing the old company health plan is another responsibility that now belongs to you.
Let me explain how electricians who've started their own businesses can approach choosing health insurance. Most people in this position fall into a handful of situations. Once we figure out which one describes your income and circumstances, it becomes much easier to identify the coverage that makes sense.
The main factor behind this decision is straightforward: does your household earn little enough to qualify for marketplace assistance with monthly health insurance premiums?
Marketplace assistance has an income cutoff of 400 percent of the federal poverty level. For one adult, that works out to a little more than $60,000 annually. The threshold increases for a couple and goes higher with each additional child. Electricians have a particular reason to pay attention to this number. Government wage data places typical electrician earnings near the single-person cutoff, meaning even a relatively small shift in annual income can determine whether you qualify for help or have to pay full price.
If you own and operate the electrical business, your net self-employment earnings are what matter. Start with the money coming in, then subtract expenses such as your van, equipment, licensing fees, insurance and other operating costs. That remaining figure determines which of the following situations applies to you.
For electricians operating with just one truck, annual profit doesn't always stay on the same side of the income threshold. You might qualify one year and exceed it the next. During years when your household falls below the cutoff, marketplace coverage is almost always the most affordable option, since that's the only place you can receive premium assistance.
The most important part is making a reasonable income estimate when you enroll. You tell the marketplace how much you expect to earn this year. If more electrical jobs come in and your income rises, you need to report the change. Otherwise, when you file your taxes, you could be required to return some or even all of the subsidy you received based on the lower estimate.
I prefer starting with your previous year's tax return and the jobs already scheduled, then reviewing the estimate again around the middle of the year.
Next step: Share last year's tax filing and an idea of how much electrical work you have scheduled. Together, we'll develop a realistic income projection and compare the health plans that fit your situation.
Once your business is consistently earning well above the subsidy cutoff, marketplace financial assistance is no longer available and you pay the full premium. For a family in good health, that can feel like a substantial monthly expense for insurance they may rarely need to use.
That's when it's worth comparing private medically underwritten coverage. The application asks questions about your health, and applicants with favorable medical histories may receive premiums considerably below the marketplace's unsubsidized rates. These plans use nationwide PPO networks, giving you access to participating providers beyond your home state. Whether you're visiting a specialist out of state or need urgent care during a family vacation, that broader network can help you find an in-network provider.
Private underwriting does come with limitations. An insurer may reject an application entirely or approve coverage while excluding a condition from your medical history. Benefits also differ from policy to policy. Before you decide, I'll explain in everyday language what each option covers and where its limitations are.
Next step: Give me a call and I'll check pricing for a medically underwritten PPO covering your household. Then we'll put that quote beside the marketplace premium and compare the two.
When you leave an electrical job that included employer health insurance, losing those benefits is considered a qualifying event. That generally gives you 60 days after the coverage ends to join a marketplace plan, even outside open enrollment. If your former employer offers COBRA and you choose it, remember that voluntarily canceling it before its normal end won't trigger a new special enrollment period.
Predicting income is particularly difficult during your first year running an electrical business. One contractor might secure a major commercial project in the second month, while another spends spring taking smaller service jobs wherever they're available. We'll consider both possibilities and base your coverage decision on the kind of year you're realistically expecting.
It's also important to separate workplace injury protection from regular medical insurance. If you get injured while performing electrical work, workers' compensation is the coverage intended for that situation. But it isn't a substitute for health insurance, and it won't cover your child's ear infection or pay for your routine yearly physical.
Next step: Contact me several weeks before you finish working for your current employer. That gives us time to arrange replacement insurance so it begins immediately after the old company coverage stops.
Depending on your area, the marketplace may list only HMO and EPO plans, or its PPO option may come with an unusually high premium. That leads many electricians to assume they can no longer get PPO coverage. But there are other routes. I can help you find a nationwide PPO across the 36 states where I'm licensed. If you're healthy, call me and we'll see what the actual premium would be.
There's no need to gather a stack of paperwork before calling, although these details can make things go more smoothly:
You won't pay anything just to speak with me or get my help. Once you enroll, the insurance company pays my commission directly. There's no extra broker charge added to the premium you would otherwise pay.
Straight answers, no sales pitch.
You can purchase insurance on the marketplace, where financial help with premiums is determined by household earnings, or consider private medically underwritten coverage if you're healthy and your income exceeds the subsidy limit. If you've recently lost employer benefits, you also have an opportunity to enroll without waiting for open enrollment.
Your eligibility depends on household size and the net income from your electrical business, rather than the total amount you invoice customers. The subsidy threshold is four times the federal poverty level, slightly above $60,000 for a single person and higher for bigger households. Even if your earnings exceed that limit, marketplace coverage remains available at its full premium.
It's often a good idea to compare the cost. Just remember that the self-employed health insurance deduction generally isn't available for months when you were eligible to join an employer-subsidized plan through your spouse. Your tax preparer can review those rules and determine how they affect your own situation.
Many self-employed electricians qualify to deduct their health insurance premiums. However, the amount of that deduction cannot exceed the net profit earned by the business. Have your tax preparer check the numbers and confirm the deduction available to you.
We don't need much information to begin. Tell me approximately how much profit you made last year, how many people are in your household, and your home zip code. I'll explain which insurance route makes sense and what you can expect to pay. If what you already have is the right setup, I'll tell you that rather than suggest changing it.
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