Health Insurance Value
Base salary and total compensation is a question all candidates and hiring managers need to know. One component is health care coverage and insurance. Although health care coverage and insurance isn’t the first item discussed, it’s often the last.
There are so many variables involving health insurance including pre-existing conditions, number of people covered, deductible, regional prices and other qualifications. To simplify, let’s try to compare apples-to-apples so we can try to monetize the potential savings a candidate might enjoy through an employer sponsored program versus paying for it completely on their own.
INCREASES IN HEALTH INSURANCE PREMIUMS
It has become the trend to combat rising health care insurance premiums by increasing your deductible. About a decade ago, I had a small family plan through BCBS with a $500 deductible and paid less than $700/mth. That same plan today would cost more than $2000 per month!
I’m now with a different insurance company and have raised my deductible to $7500 with monthly payments still closing in on $900/month. In my example, we didn’t have any pre-existing health issues and don’t have maternity coverage–both of which would rocket the premiums even higher.
UNDERSTANDING HEALTH CARE PLANS
I asked several clients and some insurance brokers to gain clarity into some health care plans they offer and what I would pay using their company’s plan. There are so many differences that it’s difficult to comprehend.
In some cases, a company’s insurance plan doesn’t save much on the monthly premium at all but has a much lower deductible ($2500). One company’s plan would actually raise my rates! That company knows this is a problem and makes it a point to mention this early on so that candidates aren’t surprised. They even offer slightly higher base salaries to offset the lack of benefit from their insurance.
IT’S DIFFICULT TO FIND AN APPLE-TO-APPLES COMPARISON!
If I extrapolated from all the conversations that I had and the details that I was able to peruse, my guess is that with a similar deductible I’d likely save about 50% of what I pay solely if the company had a competitive plan. The company will know if their plan is good or bad and with a quick question, they’ll let you know.
How much money does your company’s health insurance save (or cost) you?
The Marks Group is a technical recruiter that is hired by businesses to deliver precise technology candidates. We are a recruiting leader in Salesforce. We deliver exceptional candidates in software such as Salesforce, Marketo, Adobe Marketing Cloud, HubSpot, Pardot, Oracle Marketing Cloud, Microsoft and more.