Blog Post: The benefit of asking specifics about health insurance benefits!

With today's health care costs it's imperative that you ask about benefits in detail before accepting any final offer. It’s really not enough anymore to simply inquire if health benefits are part of the employment compensation package because there are so many factors that need to be evaluated so you can compare offers appropriately. I suggest that you specifically ask the following three questions (at a minimum) at some point during the interview process (most likely when you meet with the Human Resources representative).
When exactly do the benefits kick in? Some companies start from day one, others start benefits on the first day of the following month while some wait 90 days. The key is to know exactly when they start because if you are evaluating more than one offer, health benefits alone could make a huge difference. Also, if they do not start on day one, you’ll need some sort of bridge coverage till your benefits start. If you just left another company, you might be covered for 30 days or be eligible for COBRA but don’t underestimate the very high cost of COBRA. 

How much will the health benefits cost you per month? It’s very important to get a specific quote on cost and make sure you don’t get an estimate as it’s very easy for a company to give you a very specific premium.

Do the benefits include vision and/or dental? Don’t ever assume vision and/or dental are included if not specifically pointed out. You simply need to ask and make sure you ask the same questions as mentioned above.

Taking this all one step further, it’s also important to drill down on any benefits that are offered beyond your base salary or hourly wage. For example, if they offer a 401K plan (or any other flavor of deferred savings like a 403B, a pensions, etc.), when are you eligible to start participating, what are the details on matching (if any) and what is the vesting period. Also, if bonuses of any sort are offered, how are they calculated, when are they paid out and what has been the historical payout over the last 2-3 years.  If you are a sales professional compensated with any sort of commission plan, make sure you completely understand the plan. Finally, make sure you understand the vacation model and what holidays the company observes.

In the end, ask specifically for a benefits package or overview summary so you have the information in writing. It may also be available via the web but be sure to ask for something in writing.