How much are you
paying into your company’s health care
plan? The answer is not always obvious.
Thanks to the wonders of automated
payroll processing, we don’t concern
ourselves with the details. All we know
is monies are transferred directly into
accounts, deductions occur at source and
income slips are indecipherable tables
heavily coded with strange acronyms.
Insurance plans vary
in quality and price just like any
product in a free market. Health plan
and provider are selected at the
discretion of employer. As the employee
you’re stuck paying for it out of your
salary. The difference to your bottom
line could be hundreds of dollars every
month. Inquire on these points when
you’re going over the contract and
before you sign.
Another good reason
to be picky about your job, companies
can be widely different in the scope of
the plans they can offer. “A large
public company can offer a more
competitive plan than a small private
company because it can afford to and
because it has a larger base of
employees.”
“All companies must
pay into their employee’s health plans,
but the minimum can be extremely low,”
said Press. “In my experience, if
they’re paying more of a contribution,
such as fifty percent of the cost of the
health plan, they usually balance that
cost with a fifty percent deductible for
prescriptions and health care services.
More generous plans will cover eighty
percent of direct costs.”
Private Health Insurance
Unless your
employer’s insurance plan is priced
right, private health insurance is more
competitive in both cost and services,
whether you’re buying as an individual
or family. Coverage in this example
includes prescription drug plan,
eyeglasses and eye examination, and
health professional services such as
visits to a massage therapist and
psychologist.
Let’s say you wanted
to pay for your health insurance
privately. Or simply use the government
provided plan. You’re out of luck if
your employer offers health benefits.
According to health law in Canada you’re
legally obligated to get with the
program. You can purchase supplemental
health coverage privately, but the only
way to opt-out of your company plan is
to physically not be there by leave of
absence such as disability or maternity.
The only other
exception is spousal/ common-law
coverage. If your spouse pays less out
of pocket with access to more services
and lower deductibles, you can opt-out
of your company’s plan in favor of your
spouse’s employer’s plan.
I leave you with this
to ponder. Ask about your contribution
and your employer’s contribution when
you are ironing out the details of your
hire. If you’re passed that stage, read
your pay slip and ask questions. And if
the calculation still smarts, why not
consider getting hitched?
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