Health insurance for elevator mechanics

Here's how elevator mechanics are saving money on their health insurance this year

Most elevator mechanics have coverage through work until the day they don't. Here's how mechanics who leave, retire early from the company or start their own service business are keeping costs down.

Sam Jaber, licensed health insurance broker

Hi, I'm Sam. I'm a licensed health insurance broker in Tampa, licensed in 36 states, and I help people by phone from start to finish.

For a lot of elevator and escalator mechanics, health coverage comes with the job. If that's your situation and you're staying put, you probably don't need me. But mechanics do leave. Some start a small service and repair business, some take contract work, and some step away from a company before they're old enough for Medicare. When that happens, health insurance turns from a payroll deduction into a decision you have to make yourself, often on a deadline.

This page walks you through how mechanics in that spot are making the switch without overpaying or leaving a gap.

What changes once the employer plan is gone

The first thing to know is the deadline. Losing job-based coverage counts as a qualifying event, and you'll generally have 60 days to pick a marketplace plan, no matter what month it is. You don't have to wait for open enrollment.

The second thing is income, because it sets which path is yours. Marketplace premium help is available up to four times the federal poverty level, a little over $60,000 a year for one person and more for every additional member of the household. Above that, you can still buy a marketplace plan, just without any help on the price. If you're now self-employed, the marketplace counts your net self-employment income, after your business costs.

Here's how that plays out for the mechanics I talk to.

Scenario 1 of 4

I'm leaving my employer and I'm healthy, with income over the line

If your household will still earn above the cutoff after you leave, there's no subsidy, and the marketplace will charge you full price. For a healthy household that can be a big jump from what you paid through work.

Private underwritten plans are the other option. You answer health questions when you apply, and if you're healthy, the price can come in well below full-price marketplace coverage. They use PPO networks that cover the whole country, so you're not limited to one area's doctors.

Here's what to weigh. Because these plans review your health, they can decline you or exclude a past condition. Each plan also has its own benefits, so I walk you through what each one really covers before you make a choice.

Scenario 2 of 4

I'm thinking about COBRA

COBRA lets you keep your old employer plan for a while, and it can feel like the easy answer. Before you sign up, compare it with your other options, because it isn't always the most affordable way to stay covered.

There's one rule that catches people. If you take COBRA and later decide to drop it early, that choice doesn't open a new enrollment window. Running out of COBRA does. So the time to compare is before you elect it, not three months in.

Scenario 3 of 4

I'm starting my own service business, and this year will be lean

Your first year running your own shop might bring in a lot less than you made on the payroll, especially once you pay for a van, tools, insurance and licensing. If your household lands under the cutoff, the marketplace is usually your most affordable option, since that's the only place premium help can be used.

Because your income is new and unpredictable, the estimate you enroll with matters. You're expected to update it as the year goes on. If business takes off and you don't, the extra help you received is reconciled at tax time, and you may owe some or all of it back.

Also, if you set up workers' comp for your business, keep in mind it covers on-the-job injuries only. It isn't a health plan and won't pay for illness or routine care.

Scenario 4 of 4

Someone in my household has a health condition

If anyone on your plan has an ongoing condition or takes medication regularly, the marketplace is usually the best fit, even without premium help. Marketplace plans have to accept you and can't charge more because of your health. An underwritten plan can decline or exclude the condition you need covered.

In this case, my job is to find the marketplace plan that keeps your doctors in network and your prescriptions covered, so the change from your employer plan is as smooth as possible.

Leaving the company plan doesn't mean giving up a PPO

If your work plan was a PPO, the marketplace can be a letdown: you may find only HMO or EPO options, or a PPO priced far above your budget. That doesn't mean you have to give up a PPO. In each of my 36 licensed states, I can still put you on a PPO with a nationwide network. If you're healthy, a short call will show you the cost.

Have these ready

A few things make the call quicker:

  • The date your current coverage ends, and any COBRA paperwork
  • A rough estimate of this year's household income
  • Who needs coverage, and your zip code
  • Doctors and prescriptions you want to keep

You won't get a bill from me. The insurer handles my pay at enrollment, and none of it is added to your monthly premium.

Questions elevator mechanics ask me

Straight answers, no sales pitch.

What happens to my health coverage if I leave my elevator company job?

Your employer plan usually ends when you leave. Losing that coverage gives you a special enrollment period, generally 60 days, to choose a marketplace plan. You can also apply for a private underwritten plan if you're healthy.

Can I buy a marketplace plan if my income is high?

Yes. Anyone eligible can buy a marketplace plan. If your income is too high for premium help, you pay full price. Healthy people over the line often compare that with private underwritten plans.

If I drop COBRA early, can I enroll in a marketplace plan?

Not because of dropping it. Voluntarily ending COBRA early doesn't qualify you for a special enrollment period. Losing your job-based coverage in the first place, or reaching the end of COBRA, does.

Do elevator mechanics who start their own business need workers' comp and health insurance?

They're separate. Workers' comp covers injuries on the job. A health plan covers illness, checkups and your family. Most business owners need to think about both.

Tell me when your current plan ends

Let me know the date your coverage stops, roughly what your household will earn this year and who needs to be covered. I'll map out the options, price them, and tell you plainly if staying put is the better deal.

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