Health Bennies or Higher Pay?

Meerkat · Mar 19, 2006

By the way, does anyone know if there is a way to maintain my military coverage after the divorce?

Katnip, RN · Mar 19, 2006

I'd still go for health bennies. Accidents do happen. What happens if you break a bone? Get strep?

It's awfully expensive to pay for healthcare out of pocket, even for the annual physical, GYN exam.

Multicollinearity, BSN, RN · Mar 19, 2006

Meerkat,

Love the picture of your little girl! I was a health insurance broker for many years before going to school for nursing. You may be able to convert your previous military coverage under the HIPAA laws - but it depends on what state you are in. The states legislate how much insurers may surcharge your premium. For me, for example because of my asthma, to convert my COBRA under HIPAA would have cost me $1300 per month in premium.

I knwo it is probably tempting to go for the higher per diem pay. But still, it's not just health insurance you're giving up. I bet you have disability coverage with that lower hourly rate too, not just health insurance. What if you were disabled some day? Do you want to live on $1000 per month social security with no private disability coverage? I know a previous poster mentioned the cost of routine physicals. Personally I could care less about the cost of routine physicals. You make more than enough in one month on per diem to make up the cost of a routine physical. It's the unknowns I'd be concerned about - you know the health problems taht hit so many. Unexpected surgeries, hospitalizations, etc. And when you are sick no insurer will take you, and if you try to then get on your employer coverage, they may impose a pre-existing condition exclusion for one year like more and more are doing now.

So - unless you can get private individual coverage for health insurance PLUS disability coverage, both short-term and long-term - I wouldn't risk it. I don't know if you can get private health insurance & disability coverage taking antidepresants in your state either. Many you cannot. There's alot in that hourly rate that is not readily apparent. I wouldn't risk it, especially single. JMHO.

Multicollinearity, BSN, RN · Mar 19, 2006

Here's a breakdown:

$36 X 36 hours/week X 4.2 (one month) = $5443 monthly

$25 X 36 hours/week X 4.2 (one month) = $3780 monthly

So the difference is $1683 monthly. I know that is tempting.

Thing is, it's not just health insurance and disability coverage like I mentioned above. It's also your retirement. I bet they are matching on 401k, or other retirement plan. So hypothetically speaking - if you can do the following on your own for less than $1600 per month - you would come out ahead:

Health insurance, average $450 per month *exception for the Northeastern US, where standard non HIPAA premiums can go up to $2500 per month for an individual

Disability insurance, average $325 per month

Retirement, fund on your own equal to employer benny

Vision and Dental, pay out of pocket, there are no good individual plans that cost less than simply paying for it yourself. Unknown $$$'s.

What do you think?

edited to add: That $1683 montly = $20,196 yearly. I have to admit, I would be tempted to check out a health savings account health plan (tax savings) plus private disability insurance and a private ROTH IRA account. I doubt all that can be done for health qualification reasons (antidepressants may disqualify coverage for private health & disability insurance). But if you could qualify for coverage and you are willing to work on your retirement with a ROTH IRA or other IRA and be disciplined about all these things - really DO IT - then it might be worth exploring. Problem is, most folks who go per diem or self-employed say they will fund their retirement with the increase in their earnings but they never do. And they get low cost health plans to save $$s and then find out later with a health problem that they are sunk.

I just remembered vacation pay and sick time too.