Most Americans with standard jobs can take advantage of an employer health care plan. But if you already have your own individual plan it can be difficult to decide whether it’s best to take the company insurance or to stick with your own.
We attempt to answer that question so you can make a more informed decision.
Choose the Plan that Fits Your Needs
If you have any specific demands from a healthcare plan then you should always choose the individual option. The employer gets to choose the health care plan and so they’ll likely opt for the broadest one possible.
But if you want added extras like Humana dental insurance the individual option is better. Dental insurance is one aspect that often isn’t adequately covered by more general company policies.
Are You Switching Jobs?
Millennials are less likely to show loyalty to a company than any previous generation. They’re more likely to move between jobs as time goes on. The thing you have to remember is that when you switch companies you lose your health coverage and then you have to rely on your new job to provide you with coverage.
If you intend on only sticking with your company in the short-term an individual plan would be the better option.
Do You Want to Put in the Time and Effort?
The benefit of choosing a company plan is that all the hard work is done for you. There’s nothing worse than needing to look around for hours, while simultaneously being hamstrung by things like pre-existing conditions. Your employer may still get a better plan than you can even then. If you don’t want to have the stress and worry of dealing with healthcare it’s best to let your employer handle it.
Remember that the advantage of a company plan is that your boss also contributes towards the premiums. You can end up paying less by taking the company plan and getting more coverage at the same time. Employer healthcare programs also have the advantage of lower costs due to the
fact insurance is provided in bulk. If you would rather contribute towards a retirement plan instead, the company plan can free up your capital.
Pre-Tax Contributions Lower Your Tax Bill
Perhaps the greatest benefit of all that comes with the company plan is that you can make pre-tax contributions to your health care plan. By doing this you can lower your overall tax bill and keep more of your money. It’s true you don’t get Federal subsidies, like with the individual plan, but if you do the math the company plan is often more affordable for the average worker.
Last Word – The Best Decision for You
There’s no concrete answer because everyone has a different situation. You have to do the figures and find out which plan best suits your needs. Once you can work that out, you’ll be able to make an informed decision as to what you should do.
Which option do you believe is best for you?