Have you Thanked your Employer Lately?

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The cost of healthcare and prescriptions in this country is far exceeding the consumer price index. As a result, health insurance premiums keep rising. Workers want health insurance and prescription benefits that will pay with a minimum out of pocket expense for them. The Acting Governor of New Jersey just signed a bill mandating that insurance companies cover fertility treatment. Fertility treatments are very expensive. So for some people, this is a wonderful thing that was just done by the Acting Governor. However, it means insurance premiums are going to go up that much higher again. Insurance can pay for almost anything we want it to cover, but we have to realize that the premium that comes in must cover not only all of the claims but the administrative expenses as well. There are some folks that choose to live dangerously—they have no health insurance because they are healthy and they continue to believe that they will always be healthy. We get calls from people like this at least once a week. They suddenly find out that they have a serious diagnosis or someone in their family needs surgery and they do not have health insurance. These people tend to be quite irate when they find out that there will be a waiting period for a pre-existing condition. Health insurance, like most insurances, provides us with peace of mind. We know that we are not going to lose our house or our life savings if we get hit with a catastrophic illness. Fortunately, most of us realize that we must have health insurance.

For those people who are not able to be part of a group health insurance plan, they know how expensive it is to purchase health insurance. An individual will pay over $400 per month and have a policy with a $1500 deductible. For a family, the cost is slightly over $900 per month and that’s with a $3,000 family deductible.

There is no law that says your employer must provide you with health insurance. But the law does State that if the employer offers health insurance benefits, the employer must pay 10 percent of the premium. Many employers have been paying a much greater percentage, but all of that will be changing as the cost of health insurance continues to rise. Do not be surprised if your employer tells you that he/she must payroll deduct a portion of the premium from your weekly paycheck. You may find that you have to contribute 50 percent or 75 percent of the premium. Be sure to thank your employer for the opportunity to participate in a group health insurance plan. Whatever portion you contribute, it is still much cheaper than having to purchase health insurance on an individual basis.

If you are self-employed and have an individual plan, you might find that you qualify for a small group plan in New Jersey. It only takes two employees to qualify, and one of those employees could waive benefits if they are covered under a plan from a spouse. Check with your insurance agent or call this office for more information.

Irene Card & Betsy Chandler share the responsibilities of running Medical Insurance Claims, Inc. a health insurance services company . If you have questions relative to this column or other related topics, we invite you to call (973) 492-2828, or visit our contact page.