Obamacare: employer plans get more similar in 2015

I got a job offer to be in the IT department of a financial firm.  Their plan pays 90% of the cost for an HMO plan, 70% of a PPO plan.  How good of a benefit is that, compared to larger firms?  (The company that made me the offer has around 100 employees.)

Considering The Options

Dear Consider The Options,

One way to roughly “estimate” whether the company’s total compensation (pay plus benefits) is competitive is to find out how much turnover they have.  If they are losing people to other bigger companies right and left, it may be because their compensation package is not competitive.  You could go on a social media site like LinkedIn and find former employees; they could give you some perspective on this issue.

Starting January 1, 2015, health benefit packages will become more similar from one employer to the next.  Health reform requires employers with more than 100 employees to offer a plan to 70 percent of its people.  In addition, the employer cannot charge an employee more than 9.56% of his/her household income to join the plan (for single coverage).  This limit on employee contributions applies to all employees who earn less than 400% of the Federal Poverty Limit.

Of course, there will still be some variation in benefit plans between employers.  It’s one of the many things to consider when you look at a new job.

Congrats on getting the offer and good luck with your decision!

Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.