Locum tenens is a Latin phrase meaning “to hold the place of.” In the medical field, it refers to physicians, nurse practitioners, and physician assistants who fill in temporarily for other healthcare providers. This arrangement offers numerous benefits, including flexibility and potentially higher pay, but it also comes with unique challenges. In this blog, we will explore the basics of locum tenens, the importance of securing the right benefits, and an overview of key benefits that locum tenens should consider.
The Basics
When transitioning to a locum tenens position, healthcare providers often need to manage their benefits independently. Understanding these benefits and how to secure them is crucial for a successful locum tenens career.
What benefits locum tenens generally need to supply for themselves
As locum tenens professional, you will generally need to secure several key benefits on your own:
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- Health Insurance: Unlike permanent positions where employers typically provide health insurance, locum tenens professionals must often find their own coverage. Options include purchasing through the healthcare exchange or joining the American Medical Association’s plans if a provider is a member.
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- Retirement Savings: Locum tenens providers need to plan for their retirement independently. Various options such as individual retirement accounts (IRAs), simplified employee pensions (SEP IRAs), and solo 401(k) plans offer flexibility in managing retirement savings.
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- Disability Insurance: Without employer-provided workers’ compensation, locum tenens professionals should secure disability insurance to protect against income loss due to illness or injury.
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- Workers’ Compensation: This is typically not provided, so securing personal coverage is essential.
Benefits typically provided by a reputable agency
Some agencies offer additional benefits to make the locum tenens experience more appealing:
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- Malpractice Insurance: Given the risks associated with medical practice, having malpractice insurance is non-negotiable. Strong, reputable agencies often provide this to their locum tenens staff. Plus, since you’re not paying out of pocket for malpractice insurance, that means more income in your pocket.
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- Licensing/Credentialing Assistance: Navigating the licensing and credentialing process can be daunting. Assistance from the agency can streamline this process, allowing providers to focus on patient care.
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- Travel Assistance: Frequent travel is part of the locum tenens lifestyle. Assistance with travel can significantly reduce stress and out-of-pocket expenses.
Why it’s important to have the right benefits
Having the right protections in place as an independent contractor is vital for several reasons. Locum tenens providers must ensure they have adequate protections to secure their financial and professional future since they lack the safety net of employer-provided benefits. One of the advantages of being locum tenens is the ability to tailor benefits to individual needs. Providers only pay for what they need, ensuring efficient use of resources. Proper benefit planning is crucial for maintaining stability and security. This preparation allows locum tenens professionals to enjoy their flexible lifestyle without compromising on essential protections, protecting themselves today and preparing for a future that works best for them.
Benefits Overview
A comprehensive understanding of available benefits is essential for making informed decisions.
Health Insurance
When it comes to securing health insurance, locum tenens providers have several options to consider. Some may opt for coverage under a spouse or significant other’s plan, which can be a convenient and cost-effective solution. For those without access to a partner’s plan, the healthcare exchange offers various coverage options, allowing providers to find plans that suit their needs and budgets. Additionally, if a provider is a member of the American Medical Association (AMA), they can access high-quality health insurance plans through the association. These diverse options ensure that locum tenens professionals can find the right health insurance coverage to protect their well-being and financial stability.
Retirement Plans
Planning for retirement is crucial for locum tenens providers, and understanding the different retirement savings options available can help them prepare effectively for the future. Individual Retirement Accounts (IRAs) offer tax advantages and flexibility, making them a popular choice. Simplified Employee Pension (SEP) IRAs are also favored by independent contractors due to their higher contribution limits. For those seeking the benefits of a traditional 401(k) tailored for self-employed individuals, a Solo 401(k) is an excellent option. Though less common, defined benefit plans provide guaranteed income in retirement, which can be particularly appealing for some locum tenens providers. By exploring these options, locum tenens professionals can ensure they have a solid financial foundation for their retirement years.
Disability Insurance
Disability insurance is an essential consideration for locum tenens providers, as it offers critical income protection in the event of illness or injury that prevents them from working. Unlike traditional employees, independent contractors do not benefit from workers’ compensation coverage, making disability insurance even more important. This type of insurance can cover up to 60% of a provider’s salary in the case of injury or long-term illness, ensuring financial stability during unforeseen circumstances. Additionally, it provides a vital safety net for providers and their families, offering peace of mind and allowing locum tenens professionals to focus on their work without undue worry about potential financial hardships.
Ready To Explore Locum Tenens Opportunities?
The locum tenens lifestyle offers unparalleled flexibility and the potential for lucrative earnings. However, it also requires careful planning and management of benefits. By understanding the essential benefits and securing the right protections, locum tenens providers can enjoy a rewarding and secure career. Whether it’s through agencies providing malpractice insurance and credentialing assistance or independent planning for health and retirement benefits, the right approach can make all the difference.
At All Medical Personnel, we specialize in helping healthcare professionals find locum tenens positions that fit their career goals and salary needs. Apply for a job today and take the first step towards a more flexible and rewarding career as a locum tenens provider.
