Company paid Health Insurance Premium

[bimmer2288]

So here's a scenario I need some feedback on:

My job that I'm about to take offers to pay the employee health insurance premium. It amounts to about $329/month. To get family coverage on the same plan costs me about $500 out of pocket (Family premium is about $829/month).

Naturally I think this insurance plan sucks and after some research I found some great family plans at a fraction of the cost. Here's my question: Do you think my work would be willing to pay a portion of the insurance premium on my privately selected plan? Thoughts yes or no would help me understand from their perspective. I think it makes a lot of sense...

[bimma360]

If they didn't offer that option as an actual benefit, I doubt they will do that. If its a very small company without an official HR department, then maybe. But I mean small, where you see the owner on a regular basis, maybe even associate with him. But it couldn't hurt to check.

My current employer used to offer us $550 a month on top of our salary which we could use to purchase insurance from the company plan, or take it as income and just get our own insurance.

Also, although your company's insurance is pricey, your premium will reflect the "group" rate for the company. Whereas, if you went out on an outside plan your rate wouldn't be reflective of a group rate and your insurance company can legally raise your premium the next time it's due if you got sick. They can't single you out like that if you are part of a group like you would be through your company.

I don't know if the law has changed in the last few years, so don't quote me on that. It's worth doing some more research on the topic.

[bimma360]

Also the law really depends on your state... So I could be wrong all together hah.

[bimmer2288]

Good points, there's so much to research about these new health care laws. My company is small as you described, no official HR and I've met with the owner over dinner before.

[z31maniac]

It's possible, but unlikely.

[IronFreak]

I would look at what you get with that $500 a month. What are your deductibles and what gets covered inside that. how much of a total % do you have to pay out of pocket. For a long time I always went with the cheapest stuff, but I was single and "invincible"......Then I got married.....and then I went to the hospital last year. I now pay for a premium monthly plan that cover a lot of what my other plan didn't because having to fork $1800 out of my own pocket for walking into the emergency room was ridiculous.

[JGood]

Yeah, the smaller the company and closer you are to the owner, the more likely, but still unlikely. My ex's Boss offered to do that for her, he basically just said he'd add $xx to her paycheck each week to go towards the heath insurance, if she doesn't want to use the insurance plan that the company offered. I'm talking about a 5-7 employee chain store, though.

[mrsleeve]

Well there is always the option of talking to your boss if its a small enough outfit and working on a contract basis. Where he pays you ALL of your package including what he is forking out for benefits on your behalf. The giving you a 1099 at the end of the year making you responsible for ALL your own taxes including FICA and SSI, Health care, and retirement. It will get you a lot more money on a month to month basis but is a much larger headache for your accountant and make sure you pay your quarterly tax estimates

The other down side to this, is when or if it comes to time to lay off someone YOU WILL BE 1st GO, contract employees are always the 1st to go

[delatlanta1281]

Why would they pay for a portion? Doesn't your premium come out of your check anyway?

[bimmer2288]

Why would they pay for a portion? Doesn't your premium come out of your check anyway?

FICA, SSI, Medicare are all automatically deducted from your salary, but Health Insurance is additional and not a required deduction. They offer to pay the employee Health Insurance benefit at no cost to me, but I pay for supplemental insurance and the difference in cost if I want the family plan.

I found a cheaper family plan and want to see if they will pay a portion of the premium for the plan I found. Maybe that clarifies a little...

[mrsleeve]

^

Your putting cart before horse, you will have to get accepted into that family plan 1st, and buying H/C insurance on the open market that is not a expensive guaranteed acceptance plan full of hard ships and pit falls if you or anyone your going to put on the plan has been to the doctor or hospital in the last 7-10 years. I speak from experience on this one.

[joeym215]

I work for an insurance company (granted I work in IT, not claims, membership or benefits so my advice comes from just slighty more exposure than the the lay person) and I would say go with the company's group plan. Once health care reform is implemented and the federal and state insurance exchanges are created it SHOULD make buying individual coverage that much easier and cheaper (because insurance companies will now be competing state and nation wide instead of just regionally). Ultimately, it is health insurance so enrollment is every year, year after year, so you only commit one year at a time. I would just stick with the company's policy until this reform thing works itself out which I think is supposed to be in 2014.

[quickervicar]

It might be cheaper to go it alone this year. But things change dramatically if there is ever a claim. A group plan hedges the claims of a few over the entire group. What you pay next year with the company plan will probably be close to what you are paying this year, claim or no claim. It won't be the case if you strike out on your own carrying a claim into the open market. That is why sticking to your company plan is probably the best idea.

[joeym215]

And just to add, cheaper insurance isn't always better insurance. Compare what they both cover as it relates to things you may need in the future such as diabetes care coverage, transplant coverage, etc. You may be paying $100 less a month but when your little johnny needs a new kidney and your cheaper insurance only covers 60% with an out of pocket max at 10000 as opposed to insurance coverage that covers 90% with a 3000 out of pocket max, you are gonna wish you paid that extra 100 a month.

[delatlanta1281]

I seriously have no clue about health insurance. I know the number to HR, and I know that our company uses bc/bs and it's pretty awesome compared to most others. My premium for my wife and I is 170 a month or something with dental and optical..... I know this doesn't help. But that's what's out there from large corporations.