Health Insurance (Employer)

Employer-sponsored health insurance is group medical coverage offered through a company's benefits plan. It's one of the most valuable, and most underanalyzed, components of compensation. **How it works:** - Employer negotiates a group plan with a health insurer (e.g., BlueCross, Aetna, United Healthcare, Kaiser) - Employees choose from plan options (PPO, HMO, HDHP + HSA) - The employer pays a portion of the monthly premium; the employee pays the rest through payroll deduction **Premium contribution:** The employer's contribution to your monthly premium is real compensation. In 2023, the average employer contributed ~$7,000/year for single coverage and ~$17,000/year for family coverage. A company covering 80% vs. 50% of your premium represents thousands in annual compensation difference. **Plan types:** - **PPO (Preferred Provider Organization)**: Most flexibility to see any doctor; higher premiums and copays - **HMO (Health Maintenance Organization)**: Requires PCP referrals; lower cost but less flexibility - **HDHP (High-Deductible Health Plan)**: Lower premium, higher deductible; pairs with an HSA for tax-advantaged savings **What to compare:** - Monthly employee premium (what you pay) - Deductible (how much you pay before insurance kicks in) - Out-of-pocket maximum - Network coverage in your area - Whether your current doctors are in-network **COBRA:** If you lose or leave a job, COBRA lets you continue your employer plan for 18 months by paying the full premium yourself (often $500-$1,800+/month). Budget for this gap if changing jobs.