How to Navigate Healthcare Options During Your Job Search
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2014-02-23 23:32:46 UTC
Whether you’re a recent grad who’s never had to navigate the insurance conundrum before, or a parent with a family to cover, finding good health insurance –- not just a high salary –- is a big priority during your job search.
As a former health insurance exec and founder of Wellthie, a digital healthcare startup, I’m well acquainted with the importance (and high price) of insurance. The average cost of a single person’s premium for employer-sponsored insurance is $490 per month, or $5,884 per year. (The average for families is $1,363 per month, or $16,351 annually.)
Employees pay 18% of the cost of single coverage and 29% of the cost of family coverage, on average, so finding an employer to cover the rest of the premium is huge.
Below are a few tips to help you make the best decision about health insurance when weighing your options.
1. Do Your Homework
The first step to winning the insurance game is knowing exactly what to look for. By teaching yourself industry lingo, you’ll have the tools to evaluate potential plans and pay attention to the particular issues — especially costs — that matter most to you and your family. To kick things off, make sure you understand these four important terms.
Premium: The amount that you and/or your employer pay each month for coverage.
Deductible: The total amount you have to pay before benefits kick in. (Be sure to check to see if there’s a separate deductible for prescriptions.)
Co-payment: A fixed fee you pay for a covered healthcare service, like a doctor’s visit or a monthly prescription.
Co-insurance: Similar to but different from a co-pay, co-insurance is the percentage you pay for a covered service after you have met your deductible.
Other important terms include in- and out-of-network, excluded services and formulary. (Check out this glossary from Healthcare.gov for a full list of definitions.)
2. Ask the Right Questions
If you’ve landed a job offer, congrats! You’re at the most important stage of the health insurance process. While negotiating your compensation package, ask to see your prospective health insurance plan’s Summary of Benefits and Coverage. Every insurance company is legally required to offer one, and it provides answers to common questions such as, "What is and isn't covered?" and "How much do I have to pay when I go to the doctor?"
Other key questions to consider when selecting your plan:
How many plans do I have to choose from?
What percentage of the plan will I be paying for? (As of 2015, this number cannot be higher than 9.5% of your income.)
What is/are my deductible/s?
What’s the additional premium to cover my partner/spouse and family?
When will coverage begin? (At many companies, employees aren't covered for the first three months.)
Will I be able to see my existing doctor with this plan?
What happens if I see an "out-of-network" doctor? (Some plans charge a higher fee, while others will make you pay the entire cost — which could be hundreds or thousands of dollars depending on the treatment or service.)
Does this plan offer discounts and incentives for staying healthy?
3. Understand Your Options Beyond Employer Coverage
Many job seekers mistakenly believe that all employers now have to offer health insurance under Obamacare. In fact, the "employer mandate" to offer insurance doesn’t become effective until January 2015, and it only applies if you work at least 30 hours a week for a company with 50 or more employees.
If your new employer doesn’t offer insurance –- or if your dream job’s insurance plan is still too expensive — you may decide to shop for your own insurance plan. Be careful, though; if your new company offers coverage, check with HR before buying another plan, or else your employer may get slapped with a penalty. When looking for your own coverage, here are a few tips to take into account.
Scour the web for resources. The Jan. 1 Obamacare kickoff means that there are new marketplaces for Americans to buy individual insurance plans, like Healthcare.gov or your state’s insurance exchange. There are also a number of useful tools to help you understand options before signing up. For example, you can use Wellthie’s Affordable Care Advisor if you live in New York State and want to view various insurance plan options, or see if you are eligible for individual tax credits.
If you're under 26, you have the option to stay on your parents' health insurance plan. Whether or not this makes financial sense depends on how much you make, as explained here on Healthcare.gov.
Finding a job with a good health insurance plan can be a tough process to navigate, but due diligence is worth it in terms of savings and peace of mind. If you decide to accept a position without coverage, be sure to check out the new offerings available to you through the Affordable Care Act before March 31, 2014 in order to avoid paying a penalty for flying solo.
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Online Managing Editor at Haute Living in New York, N.Y.
Senior Product Marketing Manager at Twilio Inc. in San Francisco, Calif.
Visual Designer at Cornerstone OnDemand in Santa Monica, Calif.
Topics: Business, Job Search Series, Jobs
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