accepting a new offer, except that the health plan they offer is worse than my current one. anyone had experience in similar situation??

Got approached by this startup, we went through 3 interviews and I really like everyone I met. My future boss is also very keen on bring me on to the team. The company is also in a sector that will for sure have great growth potential, and what they do is very important that will change people's lives.

The package details were sent to me last night, everything else was great, but I just noticed that the health benefit they provide is not. What they provide is even worse than the one my current job offers, and my current health benefit isn't even a great one to start.

There are several things that I benefit from my current coverage and isn't even covered in the new one and the ones that ARE covered are with lower allowence. I've seen much better ones before..

I'm just wondering what would you do if you are in the situation? just let it go, accept it as is? or ask if there's any way to get better options?

smichalczuk's profile thumbnail
The best thing to do would be to calculate the dollar difference in annual benefits, and ask for a higher salary to offset the difference. It's not unusual for it to be a $25,000 difference (or over $100k if you need fertility coverage). You can even send the hiring manager your current benefits pamphlet as proof of the differences. They might not match it right away, but it's good to get it on their radar as an issue because it could very literally impact the benefits they purchase next year — recruiting and retention are a big deal for them.If the difference is large enough, you might decide it isn't worth it to take the job.My company Predictabill.com can run this calculation for you if you'd like the dollar amount quantified. We've also had employees introduce us to their employer's HR team, and we then help arm the HR team with data for their Finance team to request and improve benefits based on what employees actually want. A lot of times, HR knows the benefits aren't good, but they don't know exactly where to allocate their budget to make them better.
thank you so much! that's really helpful! Unfortunately I can't use your company as I'm based in Canada. It'll be great if you guys launch canadian version soon! I'll keep an eye
smichalczuk's profile thumbnail
Awesome, just shot you an email. Feel free to reply with the PDF of your current benefits and the benefits PDF for your job offer. Happy to help free of charge and get you a $ figure within 24 hours of receiving necessary info for analysis, even if the info isn't for the U.S. (I'm actually Canadian-born personally!)Confidentiality: No need to disclose the names of the current / prospective employer if that's sensitive info. We just look at the stuff around deductibles, coinsurance rates and copays, out-of-network therapy reimbursement, fertility, etc. You can just call the files "old benefits" / "new benefits" if you want (and feel free to redact the company logos if you are nervous — we truly don't care).
that's awesome! thank you so much for your help, I really appreciated it!
iynna's profile thumbnail
What fantastic feedback! I agree on all esp calculating the dollar amount difference!
brianapalma's profile thumbnail
I've been in your shoes, and I would 100% recommend negotiating for a higher base salary. I managed to get a little more (not a huge amount), and I'm so glad I did because the the cost of routine care went up by several thousand a year when I was on that plan. In my case, I was also working at an early stage startup and I think it's common to have poor coverage in that environment since the teams are small and revenue low. I would tell them flat out that their health insurance coverage represents a financial burden for you and you would like to ask for more salary (you could ask for a specific amount or see what they're willing to come up to). You could also see if they offer an FSA/HSA and if so, if they would contribute any of that. But most likely the solution would be a higher base salary. You could also look into private insurance but I've been down that road and it just tends to be so expensive. Good luck negotiating!
dflee's profile thumbnail
Great question! I do want to echo the sentiments shared above. Definitely do not accept this offer until you have negotiated the *cost* of the subpar insurance into your base salary. The insurance plans are a huge part of a benefits package in the US and a big factor in your total compensation. It may be hard to calculate the exact differences, but definitely start with seeking out as much information as possible on the insurance differential between your options, and anchor high on the dollar amount difference. You should account for the fact that you will be taxed on the additional base salary too, so it's not as simple as 1:1. Happy to chat about this further if it helps. I know negotiations can be super tricky! Best of luck!