Wednesday, June 22, 2011

New job, but employer doesn't contribute to group health insurance?

I am going for a second interview for a local, growing company. I was told (during the first interview) that the company offers a group health insurance plan, but the employer doesn't contribute to it. What does this mean? I am used to working for bigger companies and I'm not used to benefits-lingo. I am thinking I'll be paying a lot more than usual...
--------------------
It means that although you're part of a group plan, and get group benefit rates on premiums (much better than individual or direct rates) you still have to pay the entire premium yourself. The employer doesn't pick up any portion of the tab. Unfortunately, due to the high cost of benefits and the tighter economy, many employers have stopped offering benefits. Of the ones that still do offer it, many have cut back on their contribution. Some may pay 10% or even half, but your's contibutes nothing.
Source

No comments:

Post a Comment