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How do locum tenens benefits work?
Locum tenens physicians are independent contractors, which means they’re responsible for arranging their own benefits like health insurance and retirement accounts. (If you’re working locums on the side in addition to a permanent position, your health coverage and retirement planning should be available through your full-time role.)
Many locums providers who arrange their own benefits find these additional responsibilities are well worth it when considering the other benefits of locum tenens — such as higher pay and more control over where and when you work.
Let’s explore some of the perks that physicians can expect as part of a locum tenens contract, and some options for other important benefits that aren’t included.
If you’re a nurse practitioner or physician’s assistant interested in working locums with Weatherby, much of this won't apply to you since you are considered a W-2 employee and will receive retirement and health benefits through Weatherby. Visit our info hub for advanced practice providers.
What benefits are included for locum tenens physicians?
Any reputable locums staffing agency should include the following as part of your contract:
Medical malpractice insurance: While on assignment, locum tenens physicians are covered by their staffing agency’s malpractice insurance policy. The duration and type of coverage may vary between agencies — Weatherby Healthcare includes lifetime tail coverage for every locums assignment.
Licensing, credentialing, and privileging: Well-established locums agencies will often have relationships with licensing boards and facilities throughout the country and can help expedite the process of completing the necessary paperwork.
Travel and housing: Locums agencies typically handle these expenses and arrangements, including booking flights, lodging, and rental cars. You’ll usually stay in a hotel near the facility for shorter assignments, and potentially an apartment, condo, or home for longer assignments.
One of the most-overlooked benefits of working locums are the potential tax advantages. As self-employed contractors, locums physicians have additional opportunities to claim work-related expenses that can help offset the cost of health insurance and retirement benefits. Learn more about taxes for locum tenens physicians.
What benefits are locums physicians responsible for arranging?
Health insurance for locums physicians
Fully self-employed locums physicians must secure their own health insurance, plus supplementary coverage like dental, disability, or life insurance policies. While researching and choosing a health insurance plan requires a bit of effort, it also allows hand-picking a plan that’s ideal for you and your family.
When weighing health insurance options, locums physicians should consider these tips:
Look into your spouse’s or partner’s benefit plan: Your significant other may be able to cover you via a family plan, offering significant cost savings compared to purchasing your own coverage.
Enroll in COBRA as a short-term solution: For physicians transitioning from permanent positions to full-time locums work, COBRA can prevent any gaps in your health coverage.
Visit the insurance exchange on HealthCare.gov: Many options are available, from high-deductible HSA plans with low premiums to comprehensive plans that help you save on copays.
American Medical Association healthcare plans: If you’re a member of the AMA, you’ll have access to insurance plans tailored to physicians and their families.
Consult an independent insurance agent: A health insurance expert can answer questions and guide you toward a healthcare plan that makes the most sense for your lifestyle.
Retirement benefits for locum tenens physicians
Self-employment affords physicians multiple options for retirement accounts. In some cases, they may offer more control over your investments or have higher contribution limits than a traditional 401(k). Common retirement accounts among locum tenens physicians include:
Individual retirement accounts (IRAs): Traditional and Roth IRAs are among the most popular retirement accounts for locums physicians. Traditional IRAs use tax-deductible contributions and taxable distributions, while Roth IRAs use after-tax contributions with tax exemptions for qualified distributions.
Simplified employee pension (SEP) IRA: A traditional IRA designed for self-employed individuals, SEP IRAs have higher contribution limits, with tax-deductible contributions and taxable distributions.
Solo 401(k): Intended for self-employed individuals with no employees, a solo 401(k) allows contributions from both an employee and an employer. As a locum tenens physician, you can make tax-deductible contributions in both roles, allowing you to save for retirement faster.
Defined benefit plans: These plans are more complex and usually require a financial advisor to set up, but they can be an excellent option if you’d prefer a fixed income stream after retirement.
Contribution limits, tax benefits, and other details vary between retirement accounts depending on several factors. Locum tenens physicians should meet with a financial advisor to determine the best options for their individual circumstances and financial goals.
Choose an agency that maximizes your benefits
Many locums agencies offer benefits like travel, housing, and malpractice insurance coverage, but an outstanding agency will go the extra mile to protect you from liability and ensure every assignment matches your expectations.
When you work locums with Weatherby, you’ll connect with a personal consultant who oversees every aspect of your locums experience, from licensing and credentialing to travel and housing arrangements. And thanks to our close relationships with leading healthcare organizations, we’re able to deliver top-tier assignments in the best facilities, with compensation and benefits befitting of your expertise.
Learn more about the benefits of working locum tenens, or explore our other helpful resources for physicians.