I suppose this is a problem facing corporate employees across the country, but I feel like outlining how much my health benefits choices for 2006 will be significantly more expensive than this past year. Not only are our choices more limited (except for an introduction of a Consumer Directed Health Plan and a High Deductible Health Program, both lower cost but requiring higher payments if any health care is actually deemed necessary), and the benefits lowered, but the cost has gone up significantly.
The big difference is mostly due to the “flex credit” that will no longer be supplied in 2006. The flex credit existed to offset the price of health insurance. In 2006, the base price of the insurance has gone down, but the credit has been eliminated, resulting in a net increase.
Here are the details for medical, dental, and long term disability.
| 2005 | 2006 | |
| Aetna HMO (Medical) | $1,349.32 | $552.00 |
| Aetna PPO (Dental) | $207.00 | $121.92 |
| Long Term Disability | $11.88 | $11.88 |
| Flex Credit | ($1,200.00) | $0.00 |
| Total | $368.20 | $685.80 |
In both years, my company claims that the employee pays for “on average” 22 percent of the costs of enrollment. In 2005, that takes the flex credit into account.
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Those are annual totals right? That’s not so bad, although compared to last year it isn’t so good. They let you take it out pre-tax too right?
It’s pre-tax except for the long term disability. It’s not so bad compared to other corporations, but there has been a huge internal information compaign within the company over the last few months telling employees not to worry: Although the flex credit will be eliminated, the total cost wouldn’t change much — only slightly to reflect increasing costs in health care. An 86% increase seems to be more than slight to me.
I’m assuming here that you are single? I think your coverage is dirt cheap. I pay $380/month ($4500/year) for family coverage. And that only covers 90% of medical expenses and comes with $2000 deductible.
I imagine the costs for 2006 are inexpensive compared to the average of all other companies, about average when compared to other companies in this sector, and high compared to what we’re paying this year.
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