Health Insurance/Group Health Plan Compensation

[TheChief]

Okay... so, I'm retired Navy and pay for health care coverage called Tricare Prime. It's pretty darned good coverage so I have no need of nor do I pay for my employers group health plan. Each year we're offered options, so I know that for each dollar that other employees pay for the GHP, the company pays about four dollars.

Here's the rub: while it's true that as a result I don't pay a couple of hundred dollars out of each paycheck like most employees, it's also true that the company doesn't pay somewhere close to $800 each month for me.

So, I figure that compared to any other employee at my salary level, the company is saving about $9600 a year on me. Or to put it another way, I'm receiving about $9,600 less each year in benefits compared to any other employee.

Of course, I didn't bring this up when I was hired. I simply didn't think about it at the time. And I didn't bring it up when seeking to move from an hourly position to a salaried position because I simply wanted to get through that door (and out of my old department - excellent people to work with but crazy work schedule).

Now with a couple of years of proving myself, I'm beginning to think this is a bit of a shaft. And of course a few more dollars in the bank would be helpful.

Further complicating things are some recent layoffs. The business I'm in tracks very closely with new housing starts so you can imagine that things have been better. But I survived two sets of axes and am confident that my name isn't on anybody's short list.

So... probably not a good idea to bring up just now. But... evaluations and raises will happen later in the year and who knows, maybe things will be looking up overall by then. And if so I'm thinking I'd really like to bring up how much cheaper I am for any given salary level and if my work is as good as the evaluations they give me, why not show me some love, throw a little of that close to $10K a year they're saving my way?

Funny thing is, I've tried to find out about others that might be in the same basic situation of not using their employers GPH, and whether they receive any compensation for that, but haven't been able to Google anything relevant.

Have any of you been in or know of anyone in a similar situation? If so, what did the company do for you or them, or what did you or they do about it?

[Tom Slick]

I don't know what your company culture is but could you bring it up "hypothetically" with your HR dept?

[Hellrazor]

That is normally a contractual item or company policy. But don't expect to get the face value of the insurance benefit where it is offered. I think they get 20% kickback at work to opt out of the insurance.

[Tom Slick]

One issue I've thought of is if you were paid more for the opt-out then later you opt-in you'd be paid more and be receiving benefits.

[ragswl4]

Okay... so, I'm retired Navy and pay for health care coverage called Tricare Prime. It's pretty darned good coverage so I have no need of nor do I pay for my employers group health plan. Each year we're offered options, so I know that for each dollar that other employees pay for the GHP, the company pays about four dollars.

Here's the rub: while it's true that as a result I don't pay a couple of hundred dollars out of each paycheck like most employees, it's also true that the company doesn't pay somewhere close to $800 each month for me.

So, I figure that compared to any other employee at my salary level, the company is saving about $9600 a year on me. Or to put it another way, I'm receiving about $9,600 less each year in benefits compared to any other employee.

Of course, I didn't bring this up when I was hired. I simply didn't think about it at the time. And I didn't bring it up when seeking to move from an hourly position to a salaried position because I simply wanted to get through that door (and out of my old department - excellent people to work with but crazy work schedule).

Now with a couple of years of proving myself, I'm beginning to think this is a bit of a shaft. And of course a few more dollars in the bank would be helpful.

Further complicating things are some recent layoffs. The business I'm in tracks very closely with new housing starts so you can imagine that things have been better. But I survived two sets of axes and am confident that my name isn't on anybody's short list.

So... probably not a good idea to bring up just now. But... evaluations and raises will happen later in the year and who knows, maybe things will be looking up overall by then. And if so I'm thinking I'd really like to bring up how much cheaper I am for any given salary level and if my work is as good as the evaluations they give me, why not show me some love, throw a little of that close to $10K a year they're saving my way?

Funny thing is, I've tried to find out about others that might be in the same basic situation of not using their employers GPH, and whether they receive any compensation for that, but haven't been able to Google anything relevant.

Have any of you been in or know of anyone in a similar situation? If so, what did the company do for you or them, or what did you or they do about it?

I have the same insurance and as an aside, I have been getting emails from some of my retired buddies that the rumor mill says that the present adminstration has TriCare for Life on their chopping block as one of the budget reduction items as soon as they get around to the next fiscal year budget. If true, then your company's insurance may look more attactive. Don't know if all this is true but thought I would pass along the scuttlebutt.

[Thalermade]

I have heard of it. the community college in Cincinnati used to pay the full amount of health care to the employee if they had proof of insurance through their spouse or however. Interesting note, if you were single, you got the single amount, if you had a qualifying family, you got the family amount. A few years back they finally capped it to begin to try to control it.

The state university I work at now, I get $100 bucks a month for not taking the healthcare plan. But if you take the healthcare and want to add a spouse (or partner) who is eligible for healthcare at their place of employment, you have to pay extra.

Russ

[TheChief]

Thanks for the input, everyone!

I don't know what your company culture is but could you bring it up "hypothetically" with your HR dept?

I'm sure I could, and probably will. Everyone's on pins and needles now though, so I'm sure it'd be best to wait a bit before asking around.

That is normally a contractual item or company policy. But don't expect to get the face value...

No contract, and policy doesn't seem to cover this type of thing that I can see. I wouldn't expect face value - but even 20-25% would still cost them much less than if I dropped Tricare and started on their plan.

One issue I've thought of is if you were paid more for the opt-out then later you opt-in you'd be paid more and be receiving benefits.

True, but I'd certainly be willing to make it conditional.

If it comes down to a choice at some point, between laying you off or one of your co-workers, maybe that'll end up being the deciding factor.

Believe me, I'm thinking about that. It may have already happened that way, at least to some extent. That possibility certainly makes me want to be careful how it's approached.

I have the same insurance and as an aside, I have been getting emails... that the present adminstration has TriCare for Life on their chopping block... then your company's insurance may look more attactive.

That may be. But by the time I'd be even close to eligible I'll probably be fully retired anyway, so I doubt that will be a factor. BTW, What service were you in?

The state university I work at now, I get $100 bucks a month for not taking the healthcare plan.

That's probably reasonable and I certainly wouldn't argue with it.

Believe me folks, I'm not trying to be greedy. At least I don't think so. There are a number of factors at play on both sides of the issue. But there's something about the overall situation that just doesn't feel quite fair and I'm struggling with that fine balance between my sense of fair play and remaining employed.

[JoeyGee]

But if you take the healthcare and want to add a spouse (or partner) who is eligible for healthcare at their place of employment, you have to pay extra.

Russ

This is exactly what my employer is implementing this year, and from what the HR dept. says (believe it if you will) that a lot of companies are moving in this direction to save money.

As others have said, I would be very careful about asking for anything extra. In the time of massive layoffs, it doesn't take much to tip the balance on a decision to lay off you or the person next to you. I would wait a couple years for the economy to stabilize.

[jackellis]

You have to take this with a grain of salt because I'm usually not inclined to bargain with my employers (either I take what they offer or I do something else).

Depending on your viewpoint, insurance is unfair to begin with because the people with good (accident, health, property/casualty claims) histories end up subsidizing those with poor histories. Employee benefits are also somewhat unfair to the extent employers pay more in insurance premiums of all kinds for employees with families than they do single families.

Ten grand is nothing to sneeze at but I think I would let this go and focus on other things. If you want to negotiate more compensation, tie it to something tangible like your accomplishments or production or the amount of business you bring in (sales) or enable (back office).

Even in good times, employers struggle to craft benefit packages that are fair in the eyes of the law(s) and in the eyes of their employees. If you did manage to claw back some of the insurance premiums the company is not paying on your behalf in a one-off arrangement, you might create problems you and your employer will regret later.

[ragswl4]

Originally Posted by ragswl4
I have the same insurance and as an aside, I have been getting emails... that the present adminstration has TriCare for Life on their chopping block... then your company's insurance may look more attactive.

Originally Posted by TheChief
"That may be. But by the time I'd be even close to eligible I'll probably be fully retired anyway, so I doubt that will be a factor. BTW, What service were you in?"

I was in the US Navy, 20 years and 4 minutes. Retired SCPO.

I am not sure what you mean by being eligible. If you are retired from the Armed Services you are eligible NOW and you do not have to go on Medicare at 65, this continues! Cost is around $480/yr for family with $12 co-pays for most services and dirt cheap medications. I pay $6 each for 90 day supply of Plavix/Lipitor/Lisnispril/Toprol XL. Referrals take about 3 days to get approved and a very wide choice of doctors. If there is a better health plan out there (HMO type), I don't know what it is?

[TheChief]

I was in the US Navy, 20 years and 4 minutes. Retired SCPO.

Ah... 20 years, 11 days here, retired CPO/Submarines.

I am not sure what you mean by being eligible. If you are retired from the Armed Services you are eligible NOW...

Oh... misunderstanding. I know I'll be eligible for TFL. I thought you were referring to my employer's GHP.

If there is a better health plan out there (HMO type), I don't know what it is?

Amen to that! Tricare Prime and that little stipend each month has just about been the best thing about having put in 20.