We always did value H’s medical insurance provided by his empoyer when he was working and now as a retiree, where H pays 25%. It covered H, me, and both our kids until they turn 26. It provides excellent coverage and would have been hard to get otherwise, since we are all asthmatics and insurers prefer not to cover asthmatics and used to charge very high premiums if they would even cover it at all!
@ himom-
Yep, employer plans because they are group plans allow people who otherwise couldn’t get coverage to have it. One of the myths of health insurance promoted by some is if we got rid of employer insurance and people needed to get coverage for themselves, that ‘competition’ would bring down prices. The problem with that is that people who go for policies themselves are high risk, the risk is not spread out over a group. One of the goals of Obamacare was to in effect create a pool by having the health exchanges, if a lot of people sign up, and many of those are younger and healthier, it makes the risk more acceptable.
I think it is only now as people’s contributions are rising that people are starting to realize the cost of health insurance, people who have never had to contribute (for example, some public unions had no employee contributions) are starting to see what is going on. I don’t think that is a bad thing, if I hear one more moron who has employer insurance telling me that getting health insurance is no big deal, that they pay only 300 a month for full coverage, I’ll do something nasty (what they of course didn’t bother to notice is the employer is probably paying at least 1500 a month, if it was a family plan).
At a company that I used to work for, every year we would get this notification that was titled: Your Hidden Paycheck. In it, it would include all the things with dollar amounts that the company was providing for you.
So, you’d see an annual contribution to pension (totally company funded pension), matchings for 401k, health insurance, dental insurance, eye-care insurance, life insurance, FICA half, disability, etc.
The amount of the “hidden paycheck” was quite amazing. I think more companies should do that.
H and I have always been aware of benefits he and now S as federal employees receive. We have always appreciated it.
The fed govt is a major employer and can negotiate to get great rates on health and term life ins for its employees. That is one of the benefits for H and S having accepted a significantly lower salary than they could have gotten elsewhere. It also allowed them to have a nice work/life balance.
It grates when my naive mom harps on how “lucky” govt employees are to get these “free” benefits. I try to explain its part of the compensation package and a trade off to keep a good workforce but she honestly doesn’t grasp the concept.
This is exactly backwards. Employer-paid health insurance came about during WW II, when all companies had wage controls. Companies that wanted to have a recruiting advantage couldn’t pay higher salaries, because that was illegal, but they could offer better benefits, like health insurance and more sick leave. The company-paid part of your health insurance is tax deductible for the company because it’s an expense, just like your wages.
I’ve always known the cost of my benefits. The church council and then the congregation debate it every year at budget time.
Countingdown I work for NJ government and I was told to use 37% for my calculation in determining employee costs.
still not required to be on small company’s W-2’s until next Jan; i.e., it’s “Optional” this Jan for certain employers <250 W2’s.
Tom, it will vary from one employer to another depending on pension/401(k) matches, the company’s costs for medical insurance, disability, workers comp, stock grants, etc. 37% is definitely in the ballpark for a large employer with a comprehensive benefits package.
HiMom, I hear you. HUGE tradeoff on salary, depending on one’s field. DH has colleagues who have gone “to the other side” and doubled their salaries. He likes making policy and feels he’s making a difference. Not sure he will go the private sector route.
Himom- the work life balance is why I stayed in government. I was just discussing that with a co-worker yesterday. His spouse works for a great employer and I have siblings that also have great jobs with great companies but the trade off in that balance is not something either of us would trade.
It has enabled us to become greatly involved in our communities. I look back and I never had to miss an event my child had while growing up.
My employer (a major Health Insurance company) sends all employees a “total compensation” package each year noting how much was spent in wages, as well as all other benefits. For me, this package always irks me, as our family purchases our health insurance through H’s employer. So I’m well aware that the total compensation of my co-workers who use our company’s coverage is WAYYYYYY more than mine. Way back in the day, my employer acknowledged this by paying out a very small cash payment to those who declined coverage, but no more.
Why would it irk you? You are the one that decided not to take the insurance.
I know. My choice. That ship has sailed. I think it’s just the fact that the total comp documents tee it up as “Here is the total dollar value of your compensation.” aka “Here is what we ‘pay’ you for the work you do.”
Currently, unions where I work are struggling with contract talks. Employer wants everyone to pay the same dollar amount for benefits. That sounds fine if you are at the top of the pay scale, but those of us at the bottom would be paying 30-40% of our take-home. If the union succeeds in resisting this, employer will likely just start letting people go…Our benefits cost has always been a matter of public record and is shown on every paystub.
NJ has a sliding % based on salary. There are some flaws in that but overall it is a fairer plan than everyone paying the same % IMHO.
That’s what we had, but the gap between employer cost and employee contribution has grown very large in some categories. I can see a certain point – we are all getting the same benefits, but not for the same “price”. OTOH, who is going to work staff jobs if it only nets you $400/month but takes so much time you can’t have another job? I waive my benefits, get a payout for that – which goes to DH’s employer who charges us to have me on his insurance.
greenbutton I have seen many situations where a spouse works just for the benefits the salary is inconsequential to the family.
@justamom5465 You work for a major health insurance company, but get your own coverage through your H’s employer?
My sister works for a major health insurer but gets MUCH better benefits thru her H’s policy–he is a state DOE employee.