People joining the workforce such as recent graduates or those switching jobs to improve their overall financial situation should consider the potential total compensation, which includes insurance benefits, Lieutenant Governor and Department of Insurance Director Mary Taylor said.
Insurance benefits can average nearly 10 percent of total compensation, according to the Bureau of Labor Statistics.
“As Ohio’s economy continues to grow and create new opportunities, Ohioans should take into account their insurance coverage options when considering a new job,” Taylor said. “Looking at total compensation and benefits can provide a more accurate picture than salary alone.”
According to a recent survey commissioned by the National Association of Insurance Commissioners (NAIC), in which the Department is a member, 73 percent of job switchers spent time thinking about salary and only 41 spent as much time considering insurance benefits. Less than 30 percent thought as much about out-of-pocket costs or insurance coverage effective dates before making the switch.
Taylor advises Ohioans to consider the following:
Beyond salary, what are some other financial implications of making this job change?
• What options do I have to cover medical expenses while I’m between jobs?
• If something catastrophic happens to me between jobs, is my family protected?
• See if your current group life insurance plan has a conversion privilege. If so, you may have up to 31 days after leaving your job to apply for coverage.
• If your job change includes a move, check your homeowners’ policy to make sure personal possessions are covered in-transit. If not, consider a floater policy.
• Before accepting a new job, compare your current health plan with the new plan offered to assure the available mix of deductibles, co-pays and coinsurance will cost-effectively meet your needs.
Ohioans with insurance questions can call the Department’s consumer hotline at 1-800-686-1526. Insurance information is available at www.insurance.ohio.gov.