Leaving for better paying job, but insurance is worse... should I care?

[sookie]

I am leaving a federal job for another job (private) that is better in all ways but one: the insurance. I am spoiled by the federal insurance plans. I am wondering - what do you all think about this? Is it worth it to leave a job that will make me happier for more insurance cost? (out of pocket, NOT premiums...).
Just wonder what other peoples opinions are on this.

The insurance is not awful - but it would be more OOP for deductibles. FOr instance, instead of a 15 dollar copay, which I now enjoy - it would be 20% of charges. Seems like a lot! That is just an example.

Thanks!

 

[terri01p]

 

[NotUrsula]

It depends entirely if what would "make you happier" is the larger salary, and not other aspects, such as the commute, the working conditions, the hours, etc. If the salary is the enticement, then you should be doing some careful math, because increased insurance costs can very quickly make what appears to be a salary increase go into negative territory.

Example: in my last move I took a 20% salary cut, but actually ended up taking home an add'l $400 per paycheck because of the difference in the insurance costs and retirement matching plan.

 

[katesorad]

This really depends on you and your medical needs. I'd rather have a job that I enjoy and have to shell out a little extra for insurance than have a job that I don't like, just to get the insurance.. but that's just me. However, I do have a lot of medical issues.. just last year, I had kidney stones 3 times, and I'm on two different medications. Depending on what your average medical expenses are, I'd go from there..

 

[DisneyBelle99]

20% - are they calling that a co-pay or a deductible?

A deductible is usually a once a year charge. Like, the first 150 dollars a year is for you to pay.

A copay would be if you had an MD visit that cost 500 dollars, and 20% of that would be 100 dollars. That sounds not so good to me.

I would ask if they make a Medical spending plan, where you can put away some money for such expenses, but it is a "use it or lose it deal"- you have to be vigilant and watch it.

If you are young and have no significant medical history, kind of a gamble, I think. Ask HR to tell you some of the strategies other employees use to make it manageable before you make up your mind. Deb

 

[sookie]

Enjoyment is not only more money, but a better working enviroment - and a job that could potientially open some doors (different speciality). My current work enviroment is not good and a lot of people are leaving due to the enviroment there.

But we DO use our insurance a lot! That is what I am worried about. I have a child with a history of anaphylaxis, and both kids have asthma. Husband has been better now but he has had some issues too in the past (has a pacemaker).
For right now I think we are OK - but I always worry about the "what ifs..."

I just want to be happy, but I don't want to be kicking myself in the butt for the insurance.

 

[sookie]

20% - are they calling that a co-pay or a deductible?

A deductible is usually a once a year charge. Like, the first 150 dollars a year is for you to pay.

A copay would be if you had an MD visit that cost 500 dollars, and 20% of that would be 100 dollars. That sounds not so good to me.

I would ask if they make a Medical spending plan, where you can put away some money for such expenses, but it is a "use it or lose it deal"- you have to be vigilant and watch it.

If you are young and have no significant medical history, kind of a gamble, I think. Ask HR to tell you some of the strategies other employees use to make it manageable before you make up your mind. Deb

the copay is 20% of office visits, which surprised me. I've had a flat rate - like 20 for primary care, 35 for specialist. the deductible is like $400 (right now my fed is 300).

 

[sookie]

It depends entirely if what would "make you happier" is the larger salary, and not other aspects, such as the commute, the working conditions, the hours, etc. If the salary is the enticement, then you should be doing some careful math, because increased insurance costs can very quickly make what appears to be a salary increase go into negative territory.

Example: in my last move I took a 20% salary cut, but actually ended up taking home an add'l $400 per paycheck because of the difference in the insurance costs and retirement matching plan.

good thought....

 

[Tink-aholic]

Deductible = a flat amount you must pay per year before the insurance kicks in.

Copay = a flat amount you must pay per office visit as part of your visit payment.

Coinsurance = a percentage of the bill you must pay (after insurance has deducted the amount). Typically 20%, but YMMV.

FSA = Flexible Spending Account. This is an amount set by the user with PRE-TAX DOLLARS. The entire amount is available January 1 and must be used by December 31 or lost forever. There are new, stricter guidelines as to what can be used for FSA spending.

HSA = Health Savings Account. This is also set by the user, but the dollar amount is accrued every month -- one cannot use what one does not have saved up. The HSA dollars roll over from year to year. They are also subject to regulation spending, though not as strict as FSA.

 

[Tink-aholic]

the copay is 20% of office visits, which surprised me. I've had a flat rate - like 20 for primary care, 35 for specialist. the deductible is like $400 (right now my fed is 300).

Depending upon where you live, you are probably paying more in copays now than 20% of the negotiated bill, at least for PCPs and most specialists.

 

[Hannathy]

You have to look at more than heallth insurance. Which job is more stable? which has the greater chance of promotion? Which has the best long term prospects? How are the other perks? What about life insurance, disability, dental, retirement? And that health insurance don't just look at what you pay, which has more choice of Dr's, higher lifetime limits, covers more things, You can't just compare one thing.

 

[Pakey]

I have huge medical bills but I'd still rather be happy doing a job I enjoyed than working someplace just for the compensation package.

 

[bellarella]

Another thing to look at is what the yearly max is. If you have a relatively low out of pocket max, then the costs might not be that different. You would just spend more money at the beginning of the year and less at the end.

 

[akcire]

the copay is 20% of office visits, which surprised me. I've had a flat rate - like 20 for primary care, 35 for specialist. the deductible is like $400 (right now my fed is 300).

I currently have a PPO with a maximum family $2500 per calendar year out of pocket. I believe the first $250 is my deductible.

I also have no co-pays, but a 20% co-insurance (which is calculated after the insurance discount). I also happen to have a couple of doctor bills sitting here from the end of December.

These are my portions:
Primary Care $14.80
Endocrinologist $24.70
OB w/ US $74.00

Also in an expensive medical year, once I hit the $2500 out of pocket, I am done. For example in 2009 I had cancer surgery twice and radiation--so I hit the maximum very quickly. Since it was free, and I was a bit worn out; I took the opportunity to visit the Chiropractor a couple times Nov/Dec. I also made sure to get all my doctors visits that I may have done in first quarter of 2010, done in last week of Dec. (This was particularly amusing to my Endocrinologist).

This year I will max out insurance again--baby is due in April. This year I am thinking a trip to a dermatologist may be in order, in addition to the chiropractor--these are annoying things which I would probably avoid if I had to pay big $$ to fix; but since I will max out I will get them resolved. I also plan to schedule myself to see all my doctors in December of 2011.

These are just a few examples--so the co-insurance plan at the private company may indeed be a better plan. I would have to see them both side by side.

A bigger question for me would be what are you losing in pension benefits by leaving the feds? Also retirement health insurance benefits?

Most private companies don't have defined pension benefits anymore--only like 17 in US offer it to new hires.

You already have access to the Thrift savings plan, which should have a small match; but definitely is the most cost effective run retirement plan available--for once the government negotiated good rates. So much so that my accountant recommended that I never close my Thrift (from a long ago Federal job) and instead have transferred the proceeds of every past job's 401K into the Thrift.

You will have to really compare all the benefits, before you decide.

 

[sookie]

You have to look at more than heallth insurance. Which job is more stable? which has the greater chance of promotion? Which has the best long term prospects? How are the other perks? What about life insurance, disability, dental, retirement? And that health insurance don't just look at what you pay, which has more choice of Dr's, higher lifetime limits, covers more things, You can't just compare one thing.

The job is very stable, and there are a lot of ways I could move up, even though I would be pretty high starting out. The experience I would get with it would allow me to pretty much go anywhere!!! With my current job - there is no place to go, I am at the top, and even then, I'm getting pulled in too many directions.

The other insurances - I am more than happy with, I feel that they are about the same - and some are cheaper. Retirement is good. They offer some perks my current job doesn't offer - better reimbursement for certain things.

It is the dang medical insurance! But like someone said - its possible that some of my copays are more than 20% of what I am paying now.

 

[Disneycrazymom]

Another thought- be sure you compare this years insurance package from both employers. It is possible that your current insurance policy will change if you have to renegotiate it this year. If it is renegotiated it is also possible it will not be what you have had in the past but more expensive.

 

[sookie]

I currently have a PPO with a maximum family $2500 per calendar year out of pocket. I believe the first $250 is my deductible.

I also have no co-pays, but a 20% co-insurance (which is calculated after the insurance discount). I also happen to have a couple of doctor bills sitting here from the end of December.

These are my portions:
Primary Care $14.80
Endocrinologist $24.70
OB w/ US $74.00

Also in an expensive medical year, once I hit the $2500 out of pocket, I am done. For example in 2009 I had cancer surgery twice and radiation--so I hit the maximum very quickly. Since it was free, and I was a bit worn out; I took the opportunity to visit the Chiropractor a couple times Nov/Dec. I also made sure to get all my doctors visits that I may have done in first quarter of 2010, done in last week of Dec. (This was particularly amusing to my Endocrinologist).

This year I will max out insurance again--baby is due in April. This year I am thinking a trip to a dermatologist may be in order, in addition to the chiropractor--these are annoying things which I would probably avoid if I had to pay big $$ to fix; but since I will max out I will get them resolved. I also plan to schedule myself to see all my doctors in December of 2011.

These are just a few examples--so the co-insurance plan at the private company may indeed be a better plan. I would have to see them both side by side.

A bigger question for me would be what are you losing in pension benefits by leaving the feds? Also retirement health insurance benefits?

Most private companies don't have defined pension benefits anymore--only like 17 in US offer it to new hires.

You already have access to the Thrift savings plan, which should have a small match; but definitely is the most cost effective run retirement plan available--for once the government negotiated good rates. So much so that my accountant recommended that I never close my Thrift (from a long ago Federal job) and instead have transferred the proceeds of every past job's 401K into the Thrift.

You will have to really compare all the benefits, before you decide.

This is a great post - thank you for this!!!!!!!!

That is one thing I am having to bite the bullet on - the thrift. My big thing is to get my husband through school (finishing a grad degree) and then where we end up, I'm going to start looking for another state or fed job - just for that reason. I am lucky though - I am only in my mid-20s, but I have been working for quite a while and have put in for retirement - and with the feds, always enough to get full match bennies - for a while.
Your plan sounds a lot like the potiential one I will be signing up for!
thank you for your post.

 

[LisaNJ25]

Do you have kids yet? ( I didnt read all of the responses)

Kids can drain your dry with drs visits lol

My husband works for the county. His pay is crappy.. but with a family of 6 and the benefits we have I cant beat it. One of my kids has been to the ent 2 times and his pediatrician 3 times in the past 4 weeks. My plan used to be zero co-pays but now we are $10/$15.. I had 2 kids 12 months apart and paid $0.

I keep those things in mind and his pension when he talks about switching jobs.

 

[LoveBWVVBR]

Another thought- be sure you compare this years insurance package from both employers. It is possible that your current insurance policy will change if you have to renegotiate it this year. If it is renegotiated it is also possible it will not be what you have had in the past but more expensive.

This is so true. Honestly, I'd stick with the government job myself. DH and I are both engineers. We have had great insurance plans and not great insurance plans. His company had a decent PPO for years and thankfully I gave birth while on that one. They switched to a high deductable health plan/HSA setup a year ago to save $$ on premiums. It is just awful even with them putting 5K into our HSA every year. I can't even begin to tell you what we pay OOP for medical costs every year over and above the 5K in the HSA. They only count certain things towards the OOP max. DD's PT and OT don't count, so there is a good $800/month OOP since insurance doesn't cover it, there is no insurance rate for it, and it doesn't count towards the OOP max. UGH, I could go on and on. You have no idea how much bad health insurance can impact your budget. I'm going to go back to work just to get decent insurance as soon as DD2 is in school.

 

[meriface11]

i'm currently on a high deductible plan and have to pay 100% until i hit the deductible. i just got the bill for my last visit when i had a cold and it's $65 (negotiated in network rate), so yes, it's possible that your co-pay is more than 20% cost.