(Closed) Insurance question … work-related

posted 5 years ago in Career
Post # 3
Member
12833 posts
Honey Beekeeper
  • Wedding: November 1999

You could always ask, but I highly doubt they’re going to do that.  I think they just end up saving the extra money once you leave the plan.

Post # 4
Member
1245 posts
Bumble bee
  • Wedding: November 1999

@kariface:  The amount that the employer is paying toward your insurance is considered a benefit and because it is a benefit, they have to legally offer that to all their employees. Using your scenario, the employer would then have to pay extra for all those people that do not take the insurance.  How is that fair for those who do not have another option for insurance and have to get it through your employer?

Also, if you do not take the benefit, the employer is not obligated to compensate you.

So in other words, the employer saves money by not insuring you.  You will not see that savings.

Post # 5
Member
3886 posts
Honey bee
  • Wedding: September 2011

Some employers (like mine) give you a rebate for NOT going on their insurance plan but it’s never the same dollar cost that they are paying for your insurance. My employer contributes about $210/month towards my insurance (I pay $80) and if I were to go on DH’s plan, I’d get a $40/month rebate for that. 

Employers get tax benefits for paying your benefits so you’re not really saving them $200/month if you’re not on their insurance; it’s hard to say exactly what the employer’s true cost is, because there are so many factors.

Anyway you can ask but be prepared to be told No, because unless this arrangement is already in place, it’s not likely that a HR department will set up a special system just for you.  Also before you make the switch, find out what the taxable benefit to your DH would be, as he will need to pay taxes on the portion of YOUR insurance that his employer contributes. Usually this still ends up being more favorable to you in the long run, as the tax on $1000 worth of benefits (or whatever your portion of the insurance is tallied at) isn’t as expensive as the benefit itself would be if you were paying it, but if it pushes you into a higher tax bracket, then it could become very expensive.  In some cases (like mine) we actually end up with more money in our pockets by continuing to maintain separate policies even though the cost of the insurance itself is cheaper to go on one policy, as that taxable contribution for DH’s insurance (if he were to go on mine) pushes me into the next higher tax bracket, and it’s a painful bracket there!

Also don’t be mad if you’re told No; like any other employee benefit, it’s up to you to choose to use it, and you don’t usually get to pick an alternate benefit. Like my company will cover part of the costs of a gym membership.  We have a workout room at home and I don’t smoke so I wouldn’t expect my employer to pay me for my Nordic Trak.

Post # 7
Member
4327 posts
Honey bee
  • Wedding: January 1992

It doesn’t hurt to ask. The worst they could do is say no. Also, maybe negotiate for a couple extra vacation days a year if they don’t intend to pay you $200 a month, maybe?

Post # 9
Member
1249 posts
Bumble bee
  • Wedding: January 1992

@kariface:  I would ask for extra vacation!  🙂

The topic ‘Insurance question … work-related’ is closed to new replies.

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