Author Topic: Asking employer for cash instead of insurance  (Read 2164 times)

goldgrasshopper

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Asking employer for cash instead of insurance
« on: November 06, 2015, 08:07:36 PM »
Before my live-in gf recently accepted a job at a preschool, she compared offers from two schools. We looked through the offers together, and she went with the one that sucked least. The offer indicated that her employer would pay $90 towards her health insurance, lo and behold she comes to find out after working there for 2 months that the premium is going to be upwards of $300 a month! She works full-time at $14 hr. and benefits don't even kick in until she's 3 months in, despite getting sick (along with me) from the little brats.

She had mentioned the idea of asking her employer to pay her their portion of the health benefit directly to her pay check. She currently pays for her college's health insurance policy, which isn't great but still better. Its never crossed my mind, especially since the full-time positions I've held have always had decent health plans, but why wouldn't an employer not pay directly in lieu of an employee declining health insurance?

My guess is that her employer doesn't really pay per employee the same amount by which the health care company actually bills them. Is there anything else I may be missing here?
« Last Edit: November 07, 2015, 01:57:29 PM by goldgrasshopper »

Bearded Man

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Re: Asking employer for cash instead of insurance
« Reply #1 on: November 06, 2015, 10:06:23 PM »
Somehow I doubt they will pay her. They should, it's fair. Just doubt their policy works that way.

Goldielocks

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Re: Asking employer for cash instead of insurance
« Reply #2 on: November 06, 2015, 11:01:34 PM »
I believe benefit premiums decrease with more people in the plan, and it gets cheaper (a bit) for everyone.
She could ask about opting out, DH did this, and he still pays a minor amount towards LTD, but it is much less.

So,  her medical is $3600 per year, and she makes about $30,000? 

DeltaBond

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Re: Asking employer for cash instead of insurance
« Reply #3 on: November 07, 2015, 06:30:33 AM »
I'll share this, as it might be the case in other jobs, as well... I pay about $200 monthly for my company's health insurance, and my employer pays the other $2000 of the health insurance premium.  If its a situation like that, they might not pay the employee that $2000, as companies get group deals on those kinds of contracts.

mandy_2002

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Re: Asking employer for cash instead of insurance
« Reply #4 on: November 07, 2015, 11:02:03 AM »
My company is self insure through a larger insurance company (so our pool is only those in the company who choose the insurance). They have absolutely zero interest in being fair when it comes to insurance cost.

I've used the HDHP for a few years. According to our retiree and COBRA rates, they are saving $300 a month with me on this plan. It would be nice and fair to get a portion of this in my HSA (maybe 1/3, I don't expect all of it; this is a fairly common practice in companies that only offer HDHPs), but then that money would be in my pocket, not the insurance pot. I include this as a gripe every survey they give, but nothing will ever change.

goldgrasshopper

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Re: Asking employer for cash instead of insurance
« Reply #5 on: November 07, 2015, 02:02:41 PM »
So,  her medical is $3600 per year, and she makes about $30,000?

Correct

I pay about $200 monthly for my company's health insurance, and my employer pays the other $2000 of the health insurance premium.

Your employer pays $2000 a month towards your premium!?

Cranberries

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Re: Asking employer for cash instead of insurance
« Reply #6 on: November 07, 2015, 08:10:45 PM »
I did this once. The company deposited the money they would have spent on my insurance into a HSA that I set up with their bank. It's certainly worth asking.