Being an Adult: What in the hell is a health premium?

I was scrolling through my job hunting sites and had found a job I was interested in. I read through all the different parts and got down to a section where they explained some of the things they offered to each employee. One of the first lines said this:

100% paid premiums for medical, dental and vision for employees and their dependents

Now I knew that this sentence was referring to the health benefits that each employer provides for their employees. I also knew that dependents at the very least meant your children. But in theory, I didn’t know if this was good or bad. 100 percent sounded pretty damn good but hell if I knew. So I went looking. This is what I came up with.

The Basics: Health Benefits

*Key Note: You can stay on your parent’s health insurance plans until you are 26! Even if you get married, have kids, or become a shaman or whatever. So ride that train until the wheels fall off if you need to!

To understand a health premium, you have to backtrack to the nitty-gritty and understand insurance in general when it comes to becoming an employee.

When you become an employee somewhere, there are usually benefits that come along with the job if it’s full-time. By full-time, I mean at least 40 hours a week. Part-time employees are rarely offered any kind of health benefits, or benefits in general, from employers.

These benefits refer to things that are given to you just by being an employee and can range from different forms of health insurance to wellness stipends to extended parental leave. In my case above, it’s health insurance, dental insurance, and vision insurance.

One thing is for sure, you want to have provided insurance from an employer. Paying for medical insurance out-of-pocket (individually) is insane and your employer is usually required to provide you with some sort of insurance through them.

Now, not every insurance plan is the same or through the same provider. Most employers provide you with a website or information you can look at to understand your plan so I would recommend looking at that to identify key details you’ll want to know.

A Defintion: Premium

A premium is an amount you pay for your health insurance every month. (Another monthly bill, yay!)

While you pay a premium monthly, you usually have to pay other costs that go along with your insurance such as a deductible, a copayment, or a coinsurance. (We can cover those in another article though, we’re trying for basics right now.)

The amount you pay in your premium depends on the type of plan you have, your history, and multiple other factors you can find here. Baseline, the more coverage you choose, the higher our premium is monthly.

Sometimes you have to pay good money to get good stuff and when it comes to your health, and your families, I’m sure that’s not something you want to mess with. But you do have to consider your habits and your families’ habits to make the right choice.

So what’s that mean for my job posting?

It looks like this employer rocks. They will pay 100 percent of my monthly premium for the types of insurances listed. Meaning I don’t pay a cent towards my insurance premiums.

Not only that, but they provide other health benefits as well that are free of charge such as mental health support, new parent leave, and a monthly wellness stipend. They also contribute monthly to Health and Dependent Care HSA and FSA.

But wait…what in the hell is an HSA?

Drink water. Stay weird.

Justice xoxo

P.S. If you have anything to add, feel free to drop a comment below and I’ll fix it.

For further reading:

https://www.thebalance.com/understanding-what-is-an-insurance-premium-4155239

https://www.verywellhealth.com/health-insurance-premiums-1738769

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