Employee Benefits: Questions To Ask Before Choosing a Health Insurance Plan

Understanding employee benefits is crucial for making informed decisions about your overall benefits package. Before diving into the details of healthcare insurance coverage, vacation policies, and retirement plans, take the time to pose thoughtful questions. It will allow you to make choices that align with your long-term goals. In this article, FindLaw highlights key questions to ask both yourself and your employer when it comes to health plans and other employee benefits.

Types of Health Plans and Benefits

Federal and state laws require most employers to provide employee health plans and benefits. This often makes up a significant portion of an employee's total compensation package. So, both new and existing employees have important questions about employee benefits to ask. Common types of employer-provided benefits include:

• Basic healthcare benefits (such as medical, vision, and dental insurance)
• Retirement and pension plans (such as 401k's)
• Life insurance & disability insurance
• Domestic partnership benefits
• Family and medical leave

Employee benefits packages may also have other fringe benefits, which can include:

• Transportation benefits
• Tuition reimbursement
• Child or dependent care assistance
• Gym membership discounts
• Stock options

HSAs, FSAs, and the Affordable Care Act

In the world of employee benefits, understanding Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) is crucial for individuals looking to optimize their healthcare expenses. HSAs empower employees to contribute pre-tax funds for qualified medical expenses. FSAs, also employer-sponsored, allow pre-tax contributions but come with a "use-it-or-lose-it" feature annually. Both accounts cover copayments and prescriptions.

Employees should also be aware of the option to purchase health insurance through the Affordable Care Act (ACA). The ACA provides diverse coverage plans and may offer income-based subsidies. As employees navigate these choices, it's essential to ask pertinent questions before selecting a health insurance plan. This ensures your coverage is aligned with your personal circumstances and preferences.

Open Enrollment

Navigating the different types of employee benefits requires thoughtful consideration. This is especially true during open enrollment periods. During these times, both existing and new employees often have pertinent employee benefits questions to pose to human resources or the insurance company. These questions may cover aspects such as the specifics of a life insurance policy, the company's benefits for domestic partnerships, and the various perks available. Understanding the types of employee benefits is crucial. They contribute significantly to an individual's total compensation.

Open enrollment is a pivotal time for employees to assess and modify their benefit selections. It's essential to act promptly. The window for enrollment is often brief—typically 30 days or less. Failure to enroll within this period may result in default coverage provided by the company or, in some cases, no coverage at all.

Employee Benefits: Questions To Ask

As you consider enrolling in an employer health plan, it's essential to ask both yourself and your employer the right questions. This proactive approach ensures that you understand the intricacies of the benefits offered and how they align with your personal and family needs.

Questions To Ask Yourself Before Enrolling in an Employer Health Plan:

• Who in your family needs coverage?
• When does coverage begin? Is there a waiting period?
• What is the cost of any medications you currently take?
• How much vacation time, sick time, and paid time off are provided? When do these benefits start accruing?

Questions To Ask Your Employer:

• Are my spouse and kids eligible under the plan?
• How much is my monthly premium, office co-pays, or prescription drug costs?
• Does the plan cover preexisting conditions?
  • Check for any waiting periods or exclusions.
• Is my domestic partner covered under the plan?
  • Understand eligibility criteria, especially in regard to same-sex vs. opposite-sex partners.
• What is the annual deductible, and what are my out-of-pocket expenses, if any?
• When does medical, dental, and hospitalization coverage end?
  • Clarify end-of-employment coverage details.
• What type of pension or retirement plan is there? How much does the company contribute?
• Are there any family-friendly benefits, such as childcare reimbursement or back-up childcare?
• Are there any educational-related plans?
• Are there any travel reimbursement plans or travel credits?
• What is the process for filing claims or processing an appeal?

For more information on what employee benefits questions to ask, be sure to check with your employer for a list of frequently asked questions or speak with your hiring manager before accepting a job. Often, the answers to the benefits questions you need are included in the employee benefits documentation itself.

Have Concerns About Your Benefits? Talk to an Employment Lawyer

If something just doesn't seem right, or you suspect wrongdoing on the part of your employer, you may want to investigate further. An employment law attorney can help you interpret a company's employee benefits plan and give you peace of mind. Start the process today by finding an experienced employment law attorney near you.