💸 Why “We Offer Benefits” Doesn’t Mean It’s a Good Deal
Here’s the truth:
Most people spend more time comparing phone plans than they do evaluating health insurance.
And employers know it. That’s why “We offer health insurance” gets tossed around like it’s a flex.
But what they don’t tell you?
➡️ That $0 premium plan might come with a $6,500 deductible.
➡️ That PPO plan you think is great might wipe out your paycheck.
➡️ Some plans look generous—until you get sick.
So let’s break it down. Real talk. Real math. No jargon.
🧾 Premiums: The Cost You Pay Every Month (Before You Even Get Sick)
- This is the number that gets auto-deducted from your paycheck.
- Most employers will offer tiered options:
- 🟢 Basic HMO Plan: Low premium, limited network
- 🔵 Mid-Tier PPO Plan: Higher premium, more freedom
- 🔴 “Premium” PPO: Highest cost, best access—but not always best value
Here’s what matters:
➡️ What % of your premium is the employer covering?
- ✅ Great employer: Covers 80–100% of your premium
- ⚠️ Mediocre: Covers 50–70%
- ❌ Trash plan: You’re footing the whole bill (and still have a deductible)
💸 Deductibles: What You Pay Before Insurance Does Anything
You want to know the scam?
Some plans don’t actually “cover” you until you’ve paid $3,000–$7,000 out of pocket first.
So yeah, your employer “offering coverage” doesn’t mean it’s affordable.
Quick guide:
- ✅ Low Deductible: <$1,500 = Solid
- ⚠️ Mid-Range: $1,500–$3,500 = Manageable
- ❌ High Deductible: $5K+ = You’re basically uninsured until you’re broke
🩺 HSA vs. FSA: Know the Difference
- HSA (Health Savings Account):
Only available with high-deductible plans, but it’s yours forever.- Pre-tax money
- Rolls over year to year
- You can invest it
- FSA (Flexible Spending Account):
“Use it or lose it” by year-end- Also pre-tax
- But no rollover = easy to waste money if you don’t plan ahead
Pro Tip:
If the plan sucks but they give you a $2,000 HSA contribution? That might be worth something.
🧾 Co-Insurance & Out-of-Pocket Maxes: The Stuff Nobody Reads
Let’s say you get injured and rack up $10,000 in medical bills:
- You hit your deductible ($3,000)
- Then, your insurance kicks in… but only covers 80% (this is co-insurance)
- You pay the other 20% = $1,400 more
- Total out-of-pocket = $4,400, not including premiums
Out-of-Pocket Max is the most you’ll pay in a year—know this number.
✅ Good plans cap it under $5K
❌ Bad ones go over $8K+
👥 Dependent Coverage: Don’t Get Surprised
Covering a spouse or kids? Ask these:
- How much extra is the premium?
- Is the employer covering a % of dependents too—or just you?
- Is it cheaper to put your spouse on their plan?
We’ve seen “cheap” plans cost over $1,200/month when adding a family.
Suddenly that “great salary” doesn’t look so great.
🧠 TL;DR — Health Insurance Isn’t Just a Checkbox
- Don’t fall for “We offer benefits.” Ask for the plan summary.
- Look at premiums, deductibles, out-of-pocket max, and employer contributions.
- A $5K raise means nothing if you’re losing $6K to medical costs.
Want someone to review your job offer and break down the real cost of the benefits?
That’s what we do.
So you don’t just accept a job—you accept a life that makes sense on paper and in reality.
