Employee compensation means more than just salary, and while most packages include vacation days, sick days and various employee discounts, the most important part of any compensation offer is often health insurance. Students are typically covered by their parents’ health plans while in college, while others may have opted for inexpensive student health insurance. When the first professional job offer is taken, quality and affordable health insurance is an important consideration. Using sites like Medical Health Insurance Today can help you get the best possible rates in your region. Here are some common health insurance issues:
Very few private companies fund 100 percent of employee health insurance. Some government agencies may still do this, but generally employees have to contribute to the cost or their health insurance, and the newly employed should be ready to have a portion of their salary deducted to pay health insurance premiums. Many companies have plans that allow for a yearly reduction of the employee contribution amount. An employee who has worked for 10 years at a company that allows a $15 per year reduction in health insurance premiums will save $150 per month.
Deductibles and Co-Pays
Most employer sponsored health plans come with different tiers of deductibles and co-pays. A lower monthly premium is the trade-off for larger out-of-pocket expenses. Those who choose large deductibles are betting that they stay healthy. More conservative employees will choose to pay larger monthly premiums in order to ensure that they will not face large medical bills because of a single serious illness.
HMOs and PPOs
When a visit to the doctor is needed, employees should always try to see an in-network provider. These doctors and facilities are always listed either online or in the company’s insurance brochure. Even though an employee may be partially covered if they choose an out-of-network provider, the costs can be exorbitant.
Care While on Vacation
Some policies limit out of state care. Others require out of state providers to sign an agreement that limits the amount of insurance company reimbursement they will receive. New employees are urged to read the fine print of their insurance contract before any travel is undertaken. Coverage while in a foreign country may also be seriously restricted.
Coverage for Spouses
While coverage for opposite sex spouses is usually automatic, coverage for same-sex spouses can vary according to the employer and its chosen insurance provider. Coverage for any spouse will almost always cost at least a few hundred dollars per month.
Although it may be a tedious process, every new employee should carefully read the entire health insurance brochure. This will take a couple of hours, but due diligence can prevent misunderstandings and problems in the future.