Is this investing in my future or is this a stupid decision?
December 15, 2013 4:22 PM Subscribe
I've been offered to be hired where I have been a contractor. However, there is a health insurance issue that would cost me a lot of money for several months. But I would have a great retirement plan. I have nothing in savings and $100k I just consolidated in student loans, so this issue is just complicating things.
posted by McSockerson The Great to Work & Money (14 answers total)
I would be hired on at the same salary. Currently, I pay nothing for my insurance and it's pretty great. My birth control is free and my ADHD med is $10/month. ($120/year).
The health care at new job (well, same job, just not as a contractor) is a percentage of your pay 1.5%. I would pay about $1000 per year for the insurance. This may go up next year to 2%. My Rx copays will be $15 each. So that's $30/month, $360 year. So I'd be paying at least $1240 MORE just in health costs. (Yes, I have an FSA and will also get the FSA new job offers.)
However, I would have a pension. It's a pretty well managed one and they match a significant amount. You are required to contribute 6% and they match all of your contributions, if not more. Last year they matched at 10%.
The part where I'm not sure I should take it...
For the first six months, the health insurance is basic only - no Rx coverage, no mental health coverage (I don't see a therapist, just my pdoc, who I will have to see at least once, if not twice during that six month period, and his rate is $85 with no insurance.)
The lack of Rx coverage means that I would have to pay out of pocket for the meds. I've called around and the cheapest I can find generic (which i take now) for the ADHD med I take is $375.99/month. It cannot be mail ordered. I cannot get a 3-month supply. I make too much to qualify for the state prescription plan and for the patient assistance program from the manufacturer and also for the Johnson and Johnson patient assistance program. I looked on GoodRx and they gave me a coupon for it, but it doesn't say what the amount is. I am going into CVS tomorrow to find out. If the site is not a scam, it could POSSIBLY take it down to $200/month. But I won't know until I go. (CVS is the place with the cheapest price.)
COBRA costs more than the medication. The insurance plans on the exchange start at $191/month, but then I'd have to meet a deductible of at least $1500 BEFORE the coverage kicks in for Rx and even then, most of the plans only cover 30% of the generic cost. The one that has an actual copay for meds has a $6000 deductible! Not to mention, I'm already paying for health insurance for 6 months that I can only use part of.
My med is not one of those $4 generics at Wal-Mart.
So, I probably would suck it up and pay out of pocket except I JUST finished consolidating my loans and will be looking at adding at the very least a $463/month payment.
I did talk with HR at new job and they are sorry there is nothing they can do. The offer is still open if I want it.
I really like what I do and would like to stay. I feel nervous being a contractor, like my job can just end at any time.
I started there earlier this year and my income doubled. It's the most money I've ever made and I think I could really move up in this job. I want to move up there. I get great reviews.
Assume I would be able to make whatever budget modifications were necessary, I don't need budgeting advice. This is about what seems to me essentially paying to get this job. I'll have less take home, but it's going for retirement and health care, so at least it still benefits me.
I've never been in a position to really think about my future in a job I like before. I have very few good life choices makers in my circle, so I just need some help figuring this out.
Am I fool if I take this? Or is this really investing in my future?
feel free to memail if you need more details.