What is employer-sponsored coverage? 

Employer-sponsored health coverage, also known as group plans, are policies selected and provided by your employer.  These plans cover the cost of the premium for you and your dependents. 

There are several advantages to this type of coverage:

• Your employer finds and selects the plan for you 
• Your employer splits the cost of premiums with you, saving you money and giving you more disposable income. Typically, employers cover 70-80% of premiums for their employees. Average premiums can range from $6-$7k. 
• Premium contributions from your employer are untaxed, and your contributions are deducted from your taxable income.

Adding family can be expensive

Employers typically offer affordable care to employees but then charge much more to add their families. Some employers disregard health coverage for family members altogether.

According to KFF.org, “Coverage is considered unaffordable only if the cost for coverage for yourself, alone, under the employer plan is more than 9.83% of your income in 2021.”  This means even if you can’t afford the insurance coverage, the government deems that you can. 

Even if you can enroll your children or parents, you may not be eligible for tax credits. Paying out-of-pocket for any aspect of a family plan can be extremely expensive.

What is job lock? 

The term job lock is used to describe the inability of an employee to freely leave a job because doing so will result in the loss of employee benefits (usually health or retirement related). 

In a broader sense, job lock may describe the situation where an employee is being paid higher than scale or has accumulated significant benefits, so that changing jobs is not a realistic option as it would result in significantly lower pay, less vacation time, etc.

This is especially problematic for people with pre-existing conditions that struggle to find another employer who will pay their premiums. 

Save money on family plans by choosing a private option

If you’re being overcharged for family coverage, take a look at some private options.  Private health plans will cover your immediate family members at much more affordable rates.  It will also help you avoid clashing with your employer over insurance. 

A PPO plan will allow you to choose your own doctor and won’t require referrals for specialist visits.  Trips to the ER are also covered.  Private coverage also comes with benefits such as shorter wait times for appointments, customized health plans, nationwide PPO networks, and more comprehensive care. Public healthcare and employee coverage typically don’t offer these options. 

Simple Health Quotes has an experienced customer support team specializing in health insurance. We’ll guide you through the policy selection process from start to finish.  After you choose the right plan, our staff remains available to you for the duration of your policy.