You Could Save Big by Opting Out of Your Employer’s Health Plan
So, you have a job that offers health insurance? Sweet. That means signing up for it is a no brainer … right? Well, maybe not. Here are some things to think about before you sign on the dotted line.
The pros of the group plan
Employer-provided group health insurance can be a great option, especially if you work for a company that pays a good portion of your monthly premium. And if you do need to pay a portion of your premium, you do that before taxes, which gives you a savings.
“Opting out” might be a better option
Even if your company pays for some of your monthly premium, you might benefit from “opting out” of the group plan. Depending on the type of benefits the company plan offers and how much your employer contributes, it might be more expensive than if you got insurance on your own. Your company may think everyone wants a health plan that’s loaded with all kinds of benefits. But these might be right for them, not you. That leaves you paying too much for a “rich” health plan when all you need are the basics. This is what we call being “over-insured.”
During the open enrollment period for individual health insurance, take a look at the individual health plans offered on the open market—you might find one with benefits and a price that fit you better.
Insuring your family separately often makes sense.
Your company may contribute financially to your insurance premium cost, but they may not contribute to your spouse’s or kids’ plans (if they offer it to them at all). In that case, it probably makes sense to shop for private health insurance for your family members to see if there are other plans that fit their needs at a more appealing price point. You could be surprised at the savings you find here.
Regardless, the main thing is to get the right coverage for the right cost for you. Need help? Email us firstname.lastname@example.org.
Find the Friday health plan that’s just right for you.