Choosing the Right Benefit Plan
Congratulations! You’ve landed a new job! You’re excited and ready to get going. As with any job, you start by filling out the appropriate verification and tax forms and contact information. Up next? The benefit plan. Choosing the right benefit plan is an important decision.
There are many factors to consider when selecting the plan that is right for you:
Prescription costs & tiers
Dental and Vision benefits and their costs
Flexible Spending options
It might be tempting to choose the plan with the lowest cost per paycheck. However, you should consider other factors first. Do you have any pre-existing conditions? Do you go to the doctor frequently? Do you fill several prescriptions a month? Generally, the plans with the lowest upfront cost have the highest deductible and co-pays. However, if you don’t typically use medical insurance more than a few times a year, it might be wise to choose the plan with the lower upfront costs.
Go through your records over the past year and determine the number of times that you believed you used your insurance or went to the doctor. Weigh that against the cost of your co-pays, while noting whether you will be required to pay an additional 20 percent on top of that or if your plan requires co-pays only.
Take your time and make sure that you are happy with your decision. In most cases, you’ll be locked into that plan for a year (or until your next open enrollment period). If you have any questions, reach out to your Human Resources personnel or speak to your plan’s representative. Utilize the tools that are available to you to help you make an informed decision.