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midnight melon mounter
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My family has been medically insured by my wife's employer. It's a small architecture office, and we know that our family coverage has been costing them about $1,200/month.

My new job offers less expensive insurance plans that work for us. We would have to buy in, and it would be a bite out of my paycheck.

What should my wife ask for in return for shifting our insurance burden to me? Additional salary equal to the cash value of the policy we had been receiving? The value of the less expensive policy we will be buying?

Thanks Lounge. Her employer is a family firm, nice people who have been good to us, and I'd like to find the fair solution.
 

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The City where I work offers a "$50 Cash Out" per month for choosing to be insured through a spouse/other employer. By the way, the $50 is taxed as compensation so it's more like $45 by the time you get a check.
 

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No hero that's understood
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I'm not sure I understand why you would switch from free to paid?

That being said, if there is a reason, like the coverage is better, I wouldn't ask her employer for anything. It's your choice to take the benefits offered or not. I wouldn't expect to get anything additional from her employer.
 

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n00bsauce
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We're switching to my wife's plan next year. Our coverage will be comparable but her plan has bigger deductibles so it may cost us more. I will get $100/month from my employer when we make the switch. What's worth it to me is the paper work with our current plan. It's horrendous. Time consuming, confusing and discombobalating. It will be worth it to get out from under this burden even though it may cost us money.
 

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eminence grease
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I know if an employee came to me and asked to receive equivalent compensation for something they no longer wanted, I wouldn't take it very well. Asking for the equivalent in salary seems very inappropriate.

Taking it to the weird extreme, would you ask for equivalent compensation for the free donuts and coffee you choose not to consume?

Maybe it's just my sensibilities speaking here - feel free to ignore them.
 

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Rep *****.
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AIE said:
Additional salary equal to the cash value of the policy we had been receiving?
Probobly a little less. Giving away insurance is cheaper than giving away money. The other half of SS/medi, workmans comp, unemployment,etc. Varies by state and industry but it costs me about $50/hour to pay someone $25/hour when you factor in everything.
 

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haole from the mainland
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You wife may be able to downgrade to a supplemental policy that would pay for deductibles and stuff not covered by your insurance plan. That is what I could get if I opted out of my insurance and went on a spouse's. I don't think I can opt all the way out, though.

I agree with others that your wife can't really ask for that money to be given in salary. Are singletons whose insurance doesn't cost as much getting paid more? Are people given salary cuts when they add a spouse or family to their plan? Probably not.
 

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AIE said:
My family has been medically insured by my wife's employer. It's a small architecture office, and we know that our family coverage has been costing them about $1,200/month.

My new job offers less expensive insurance plans that work for us. We would have to buy in, and it would be a bite out of my paycheck.

What should my wife ask for in return for shifting our insurance burden to me? Additional salary equal to the cash value of the policy we had been receiving? The value of the less expensive policy we will be buying?

Thanks Lounge. Her employer is a family firm, nice people who have been good to us, and I'd like to find the fair solution.
Asking for compensation for switching insurance sounds inappropriate.
 

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Your wife's employer may get a group rate so leaving might make it cost more for others - so it may not be 100% upside for them. I don't see it as completely inappropriate if you are offering an upside to them though. If your new plan is considerably cheaper, it might be of interest to your wife's employer to split the difference or something. But I don't see it being fair to ask for the entire $1200.

I see it as something that you could offer to them rather than asking for something in return. Approach the administrators and explain the situation and suggest that there may be a way for them to save some money such that everyone is a winner.

Be careful with the math though - taxes may have an impact on who benefits and how.

Now for the disclaimer - I'm from socialist Canuckistan so I don't really know much about insurance.
 

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2 busy workin' 2 hang out
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Amazing of how much "inappropriate" behavior in American business culture hurts the upper crust and would benefit those lower down the totem pull.
 

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Henry Porter said:
Amazing of how much "inappropriate" behavior in American business culture hurts the upper crust and would benefit those lower down the totem pull.
I think everyone is "Amazed" at the small amount of sense this post makes.
 

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2 busy workin' 2 hang out
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lampshade said:
I think everyone is "Amazed" at the small amount of sense this post makes.
It's just another example of how business culture deals with the non-management. AIE's family is going to save her company at minimum hundreds of dollars a month but several of the advice given is just to not ask for anything in return when they are sacrificing a benefit of her position. Her pay at her position is a combination of salary and benefits. Effectively they are taking a pay cut.

It's just like not talking about salaries with co-workers. It only benefits management.
 

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I'm kinda surprised by the responses. But I guess different business environments have different ways of dealing with these things.

Kinda different where I come from. My previous employer was paying over $6000/6mos for my health plan. If I were to have chosen to seek out my own insurance (different from their plan), they were prepared to give me the cash equivalent in my pay... something like $5000 every 6 mos in compensation for not taking their med plan.

I get paid a base salary plus a percent production if it exceeds base salary. On top of that I get a benefits package which includes medical insurance, membership dues, license fees and other extras. If I chose not to take the benefits pkg, they give me more-or-less the cash equivalent in my pay. (My beneifts pkg is "worth" around 15-18K per year. If I chose not participate, they give me a similar amount increase in my salary to compensate for the benefits pkg. In fact, my employers would love to do this because it is less paperwork and responsibility on their part despite the tax benefits they'd get.)

(And so... I agree with HenryPorter... she's taking a cut in total compensation if she doesn't get compensated from the employer for the health plan.)
 

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Captain Obvious
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i would expect some sort of increase in salary. i know at a former company, somebody who had his own insurance prior and didn't want to switch was compensated monthly for it.
 

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eminence grease
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Henry Porter said:
It's just another example of how business culture deals with the non-management. AIE's family is going to save her company at minimum hundreds of dollars a month but several of the advice given is just to not ask for anything in return when they are sacrificing a benefit of her position. Her pay at her position is a combination of salary and benefits. Effectively they are taking a pay cut.

It's just like not talking about salaries with co-workers. It only benefits management.
If a new employee walked in the door, already covered by his wife's policy, he would not automatically be given a salary that was $1200, just because.

Medical insurance is not considered "compensation"' it comes under a different heading as it's not straight across pay for services. Benefits, are different and and handled differently in many ways, including corporate taxes. For example, my "total comp" summary at the end of the year includes salary, stock, 401k and bonuses. I get an additional "benefits statement" that details the company's contribution to health insurance, unemployment and disability insurance among other things.

Spin it anyway you like, she's not taking a pay cut, she is electing to go with (perhaps) better coverage at a cost they are electing to pay. I honestly can't understand how anyone thinks this should be turned into salary when she's losing nothing out of pocket. The only reasonable request mig be for her company to pick up the cost of the new insurance but the obvious question is "why would you change?"
 

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terry b said:
If a new employee walked in the door, already covered by his wife's policy, he would not automatically be given a salary that was $1200, just because.

Medical insurance is not considered "compensation"' it comes under a different heading as it's not straight across pay for services. Benefits, are different and and handled differently in many ways, including corporate taxes. For example, my "total comp" summary at the end of the year includes salary, stock, 401k and bonuses. I get an additional "benefits statement" that details the company's contribution to health insurance, unemployment and disability insurance among other things.

Spin it anyway you like, she's not taking a pay cut, she is electing to go with (perhaps) better coverage at a cost they are electing to pay. I honestly can't understand how anyone thinks this should be turned into salary when she's losing nothing out of pocket. The only reasonable request mig be for her company to pick up the cost of the new insurance but the obvious question is "why would you change?"
So, you get more money as a bonus for what I assume is more profit for your company even though it involves risks by that company. She is doing you one better and giving them an increase in incoming money guaranteed every month. No risk to the company, nothing that they have to do. And yet you deserve your extra money but she doesn't because she didn't get it in cash originally?

It's all just a shell game with management which you've illustrated with all your insurance, salary, bonuses, stock, 401k, etc. It's not cash that should be even but compensation.
 

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eminence grease
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Henry Porter said:
So, you get more money as a bonus for what I assume is more profit for your company even though it involves risks by that company. She is doing you one better and giving them an increase in incoming money guaranteed every month. No risk to the company, nothing that they have to do. And yet you deserve your extra money but she doesn't because she didn't get it in cash originally?

It's all just a shell game with management which you've illustrated with all your insurance, salary, bonuses, stock, 401k, etc. It's not cash that should be even but compensation.
Okay Henry, you win once again.
 
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