Paying half of my paycheck on health insurance?

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Topic Author
vu8
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Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 1:53 pm

Good afternoon my friends,
Found a job at a call center of M***** S****** that pays 19 an hour, I'm technically hired by a temp agency, so the temp agency pays me to perform the work at MS.
In the medical insurance enrollment process, I found that the premium is obscene! 286 for health insurance, 29 for dental and 3 for vision, per PAY PERIOD! I get paid twice a month, I'm single and in the early 20s, I still have to pay 640 a month just for health insurance???
This is 42% of my paycheck!!! How is this normal? The deductible is 1350 dollars, most medical visits are deductible + 20% copay, maximum cap is 5300 dollars.
Is this okay? I also looked up on healthcare.gov, and the premiums are maybe 100 dollars cheaper but deductibles are like 2000-3000 dollars.

welsie
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Re: Paying half of my paycheck on health insurance?

Post by welsie » Tue Jun 04, 2019 2:09 pm

vu8 wrote:
Tue Jun 04, 2019 1:53 pm
Good afternoon my friends,
Found a job at a call center of M***** S****** that pays 19 an hour, I'm technically hired by a temp agency, so the temp agency pays me to perform the work at MS.
In the medical insurance enrollment process, I found that the premium is obscene! 286 for health insurance, 29 for dental and 3 for vision, per PAY PERIOD! I get paid twice a month, I'm single and in the early 20s, I still have to pay 640 a month just for health insurance???
This is 42% of my paycheck!!! How is this normal? The deductible is 1350 dollars, most medical visits are deductible + 20% copay, maximum cap is 5300 dollars.
Is this okay? I also looked up on healthcare.gov, and the premiums are maybe 100 dollars cheaper but deductibles are like 2000-3000 dollars.
Is your employer paying some of the total premium?

I mean, it doesn't seem that crazy. My total medical and dental cost is almost $1,200 a pay period (employer + myself) for a family of 3, pay period is twice a month. Thankfully my employer cover 2/3's of it, but good healthcare is expensive.

HomeStretch
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Re: Paying half of my paycheck on health insurance?

Post by HomeStretch » Tue Jun 04, 2019 2:11 pm

I am not an ACA expert. Did you provide your info at healthcare.gov for a quote to see if you qualify for a subsidy?
Last edited by HomeStretch on Tue Jun 04, 2019 2:16 pm, edited 1 time in total.

Silk McCue
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Re: Paying half of my paycheck on health insurance?

Post by Silk McCue » Tue Jun 04, 2019 2:16 pm

Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers

oldfatguy
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Re: Paying half of my paycheck on health insurance?

Post by oldfatguy » Tue Jun 04, 2019 2:17 pm

welsie wrote:
Tue Jun 04, 2019 2:09 pm

I mean, it doesn't seem that crazy. My total medical and dental cost is almost $1,200 a pay period (employer + myself) for a family of 3, pay period is twice a month. Thankfully my employer cover 2/3's of it, but good healthcare is expensive.
Yep. Total cost of insurance premiums for my family of 3 (on 2 policies) is over $35,000 a year. Then there are the deductibles, co-pays, and co-insurance.

welsie
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Re: Paying half of my paycheck on health insurance?

Post by welsie » Tue Jun 04, 2019 2:19 pm

oldfatguy wrote:
Tue Jun 04, 2019 2:17 pm
welsie wrote:
Tue Jun 04, 2019 2:09 pm

I mean, it doesn't seem that crazy. My total medical and dental cost is almost $1,200 a pay period (employer + myself) for a family of 3, pay period is twice a month. Thankfully my employer cover 2/3's of it, but good healthcare is expensive.
Yep. Total cost of insurance premiums for my family of 3 (on 2 policies) is over $35,000 a year. Then there are the deductibles, co-pays, and co-insurance.
Yup, I am on a HDHP as well, so I view my insurance costs as fairly reasonable.

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 2:27 pm

HomeStretch wrote:
Tue Jun 04, 2019 2:11 pm
I am not an ACA expert. Did you provide your info at healthcare.gov for a quote to see if you qualify for a subsidy?
Shamefully, ACA will have no subsidy for people who "are already eligible for employer sponsored plans"...

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 2:28 pm

oldfatguy wrote:
Tue Jun 04, 2019 2:17 pm
Yep. Total cost of insurance premiums for my family of 3 (on 2 policies) is over $35,000 a year. Then there are the deductibles, co-pays, and co-insurance.
I would pass out if I have to pay 35k just for healthcare... Hang in there sir!

life in slices
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Re: Paying half of my paycheck on health insurance?

Post by life in slices » Tue Jun 04, 2019 2:29 pm

Been there - insurance cost can be overwhelming

Hopefully on your end the deductions are pre-tax to take some of the bite away

Off the top of my head, If you are healthy, see if there is a catastrophic coverage option (coving only for hospitals or serious things - everything else out of pocket) - it might be cheaper

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 2:29 pm

welsie wrote:
Tue Jun 04, 2019 2:09 pm
I mean, it doesn't seem that crazy. My total medical and dental cost is almost $1,200 a pay period (employer + myself) for a family of 3, pay period is twice a month. Thankfully my employer cover 2/3's of it, but good healthcare is expensive.
So you pay about 400 for a family of 3 biweekly, I pay 320 per pay period with no family, I think my employer (which is a temp agency) pays nothing

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Watty
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Re: Paying half of my paycheck on health insurance?

Post by Watty » Tue Jun 04, 2019 2:30 pm

vu8 wrote:
Tue Jun 04, 2019 1:53 pm
I'm technically hired by a temp agency,
.....
How is this normal?
You are working at temp agency with crappy benefits.

The competition for the work you are doing is likely a call center in India where they get paid a fraction of what you are paid which is why the total compensation is so low.

Many times when someone takes a job like that they would be getting health insurance through a spouse so the bad benefits don't really matter to them so that also lowers the bar.

When you interviewed for this job and had pay and benefit package should have been clear. If you had better alternatives then it may have been a mistake to take this job.

Sometimes you "do what you gotta do" for a while to get some work experience and learn some skills but you should be working on a plan to eventually find a better job.

If you were asking why the health insurance is so expensive in general a big part of it is even though you are healthy now you could be in a car accident tomorrow or have some unexpected health problem and run up a million dollars in claims.

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 2:31 pm

life in slices wrote:
Tue Jun 04, 2019 2:29 pm
Been there - insurance cost can be overwhelming

Hopefully on your end the deductions are pre-tax to take some of the bite away

Off the top of my head, If you are healthy, see if there is a catastrophic coverage option (coving only for hospitals or serious things - everything else out of pocket) - it might be cheaper
Saw a bunch of them on healthcare,gov, about 150-200 a month, but there would be absolutely no tax benefits because i "already qualify for an employer sponsored plan" despite the fact that the plan is eating a massive chunk off of my pay...

welsie
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Re: Paying half of my paycheck on health insurance?

Post by welsie » Tue Jun 04, 2019 2:34 pm

vu8 wrote:
Tue Jun 04, 2019 2:29 pm
welsie wrote:
Tue Jun 04, 2019 2:09 pm
I mean, it doesn't seem that crazy. My total medical and dental cost is almost $1,200 a pay period (employer + myself) for a family of 3, pay period is twice a month. Thankfully my employer cover 2/3's of it, but good healthcare is expensive.
So you pay about 400 for a family of 3 biweekly, I pay 320 per pay period with no family, I think my employer (which is a temp agency) pays nothing
Well I also have a $3K deductible per person ($6K for the family). You have a much lower deductible, so that is a bit of an apples to oranges comparison.

Rest assured, my out of pocket medical expensive is probably significantly higher than yours.

cherijoh
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Re: Paying half of my paycheck on health insurance?

Post by cherijoh » Tue Jun 04, 2019 2:36 pm

Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
I'm pretty sure the OP made the rookie mistake of comparing his/her healthcare premiums to take-home pay which is NOT a valid metric.

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 2:36 pm

Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
xDDDDDD I technically get paid biweekly but yeah gotta sharpen my math. 320x(52/2)/39520=21.1%, still a massive chunk though... Heart is bleeding

HomeStretch
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Re: Paying half of my paycheck on health insurance?

Post by HomeStretch » Tue Jun 04, 2019 2:37 pm

vu8 wrote:
Tue Jun 04, 2019 2:27 pm
HomeStretch wrote:
Tue Jun 04, 2019 2:11 pm
I am not an ACA expert. Did you provide your info at healthcare.gov for a quote to see if you qualify for a subsidy?
Shamefully, ACA will have no subsidy for people who "are already eligible for employer sponsored plans"...
The 42% in your initial post made it sound like your plan would not be considered “affordable” as defined by the ACA which (I thought) might make you eligible for a subsidy even if covered by an employer plan.
Last edited by HomeStretch on Tue Jun 04, 2019 2:40 pm, edited 1 time in total.

welsie
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Re: Paying half of my paycheck on health insurance?

Post by welsie » Tue Jun 04, 2019 2:37 pm

Watty wrote:
Tue Jun 04, 2019 2:30 pm
vu8 wrote:
Tue Jun 04, 2019 1:53 pm
I'm technically hired by a temp agency,
.....
How is this normal?
You are working at temp agency with crappy benefits.

The competition for the work you are doing is likely a call center in India where they get paid a fraction of what you are paid which is why the total compensation is so low.

Many times when someone takes a job like that they would be getting health insurance through a spouse so the bad benefits don't really matter to them so that also lowers the bar.

When you interviewed for this job and had pay and benefit package should have been clear. If you had better alternatives then it may have been a mistake to take this job.

Sometimes you "do what you gotta do" for a while to get some work experience and learn some skills but you should be working on a plan to eventually find a better job.

If you were asking why the health insurance is so expensive in general a big part of it is even though you are healthy now you could be in a car accident tomorrow or have some unexpected health problem and run up a million dollars in claims.
Also, and not to get political, but prior to the ACA, high deductible plans for young people were way cheaper. When my wife and I started dating (about 10 years ago) in our early 20s, she paid just over $100 a month for health insurance. Not much one can do about that, but if you are looking for explanatory variables for your high healthcare cost as a single, healthy, young person...

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leeks
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Re: Paying half of my paycheck on health insurance?

Post by leeks » Tue Jun 04, 2019 2:42 pm

Perform the best you can at this job but *very soon* start looking for your next, better job. Temp agency work does not usually include subsidized health insurance, so you are seeing the full cost passed on to the employee. Keep working hard and hopefully your next position will have better pay and benefits! If you can, do something on the side to increase your skills and become more qualified for better work (coursera courses, part-time grad school of another kind especially if your parents are still willing to fund it, etc).

delamer
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Re: Paying half of my paycheck on health insurance?

Post by delamer » Tue Jun 04, 2019 2:44 pm

vu8 wrote:
Tue Jun 04, 2019 2:36 pm
Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
xDDDDDD I technically get paid biweekly but yeah gotta sharpen my math. 320x(52/2)/39520=21.1%, still a massive chunk though... Heart is bleeding
If you are paying the premiums with pretax dollars, that will save you some money in income taxes.

FireAway
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Re: Paying half of my paycheck on health insurance?

Post by FireAway » Tue Jun 04, 2019 2:52 pm

vu8 wrote:
Tue Jun 04, 2019 2:27 pm
Shamefully, ACA will have no subsidy for people who "are already eligible for employer sponsored plans"...
Not strictly true... having access to an affordable employer plan makes you ineligible for a subsidy. "Affordable" means your share of the coverage is less than 9.56% of your household income. So, if the employer plan is obscenely expensive (as the OP originally asserted) then you can still get the subsidy.

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 3:05 pm

FireAway wrote:
Tue Jun 04, 2019 2:52 pm
Not strictly true... having access to an affordable employer plan makes you ineligible for a subsidy. "Affordable" means your share of the coverage is less than 9.56% of your household income. So, if the employer plan is obscenely expensive (as the OP originally asserted) then you can still get the subsidy.
https://imgur.com/SxwMaRW
https://imgur.com/PzN6raN
See, on the ACA website it didn't mention the income threshold, just saying "if your job offers a health insurance, you are out of tax subsidy"

N10sive
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Re: Paying half of my paycheck on health insurance?

Post by N10sive » Tue Jun 04, 2019 3:16 pm

I would look directly at an insurer like kaiser, blue shield etc. You could probably get a plan for less than $400 per month. The deductible maybe higher though. You should be fine being younger unless you have medical issues.

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SevenBridgesRoad
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Re: Paying half of my paycheck on health insurance?

Post by SevenBridgesRoad » Tue Jun 04, 2019 3:25 pm

The high health care insurance premium is only half of your equation, and not the half you can do much about. Concentrate on the better job side of the equation. Call center jobs for most young people should be short term employment. What is your next step in order to increase your income and qualify for better benefits?
Retired 2018 | Love to work at nothing all day | 30:70 VTINX with two deferred single premium annuities and deferred SS | VPW Method | Sleeping very well at night

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 3:30 pm

leeks wrote:
Tue Jun 04, 2019 2:42 pm
Perform the best you can at this job but *very soon* start looking for your next, better job. Temp agency work does not usually include subsidized health insurance, so you are seeing the full cost passed on to the employee. Keep working hard and hopefully your next position will have better pay and benefits! If you can, do something on the side to increase your skills and become more qualified for better work (coursera courses, part-time grad school of another kind especially if your parents are still willing to fund it, etc).
Excellent suggestion Master Leeks! Will try to work hard and get out of the rabbit hole

gtg970g
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Re: Paying half of my paycheck on health insurance?

Post by gtg970g » Tue Jun 04, 2019 3:33 pm

If you are healthy you may want to check into getting a short term medical policy. These policies do not meet ACA minimum requirements and can only cover you for < 1 year but they could meet your needs if you only need catastrophic care. You may be eligible for ACA subsidies if your coverage through work is not considered affordable so that is worth checking out as well.

Topic Author
vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 3:33 pm

SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:25 pm
The high health care insurance premium is only half of your equation, and not the half you can do much about. Concentrate on the better job side of the equation. Call center jobs for most young people should be short term employment. What is your next step in order to increase your income and qualify for better benefits?
Well said... I got my Bachelor's in Business in Winter 2018, which isn't a very useful degree as I encountered enormous difficulty finding a decent full time job. This call center job pays a lot more than my previous small jobs, one pays 8.55 an hour, the other pays 13 an hour driving vehicles from factories to parking lots under any elements including pouring rain... Any recommendations besides getting into 60k in debt and get a masters degree in finance...

Prahasaurus
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Re: Paying half of my paycheck on health insurance?

Post by Prahasaurus » Tue Jun 04, 2019 3:40 pm

vu8 wrote:
Tue Jun 04, 2019 3:30 pm
leeks wrote:
Tue Jun 04, 2019 2:42 pm
Perform the best you can at this job but *very soon* start looking for your next, better job. Temp agency work does not usually include subsidized health insurance, so you are seeing the full cost passed on to the employee. Keep working hard and hopefully your next position will have better pay and benefits! If you can, do something on the side to increase your skills and become more qualified for better work (coursera courses, part-time grad school of another kind especially if your parents are still willing to fund it, etc).
Excellent suggestion Master Leeks! Will try to work hard and get out of the rabbit hole
Also, vote. Europeans, for example, don't have these issues. The answer to the health care fiasco in the US is political. But since we are not allowed to discuss politics here, I won't expand.

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SevenBridgesRoad
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Re: Paying half of my paycheck on health insurance?

Post by SevenBridgesRoad » Tue Jun 04, 2019 3:46 pm

vu8 wrote:
Tue Jun 04, 2019 3:33 pm
SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:25 pm
The high health care insurance premium is only half of your equation, and not the half you can do much about. Concentrate on the better job side of the equation. Call center jobs for most young people should be short term employment. What is your next step in order to increase your income and qualify for better benefits?
Well said... I got my Bachelor's in Business in Winter 2018, which isn't a very useful degree as I encountered enormous difficulty finding a decent full time job. This call center job pays a lot more than my previous small jobs, one pays 8.55 an hour, the other pays 13 an hour driving vehicles from factories to parking lots under any elements including pouring rain... Any recommendations besides getting into 60k in debt and get a masters degree in finance...
Not trying to be difficult here, but I asked you what your next step is. Tell us your ideas, your plan.
Retired 2018 | Love to work at nothing all day | 30:70 VTINX with two deferred single premium annuities and deferred SS | VPW Method | Sleeping very well at night

welsie
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Re: Paying half of my paycheck on health insurance?

Post by welsie » Tue Jun 04, 2019 3:56 pm

Prahasaurus wrote:
Tue Jun 04, 2019 3:40 pm
vu8 wrote:
Tue Jun 04, 2019 3:30 pm
leeks wrote:
Tue Jun 04, 2019 2:42 pm
Perform the best you can at this job but *very soon* start looking for your next, better job. Temp agency work does not usually include subsidized health insurance, so you are seeing the full cost passed on to the employee. Keep working hard and hopefully your next position will have better pay and benefits! If you can, do something on the side to increase your skills and become more qualified for better work (coursera courses, part-time grad school of another kind especially if your parents are still willing to fund it, etc).
Excellent suggestion Master Leeks! Will try to work hard and get out of the rabbit hole
Also, vote. Europeans, for example, don't have these issues. The answer to the health care fiasco in the US is political. But since we are not allowed to discuss politics here, I won't expand.
That is misleading, the ACA lowered medical insurance costs of older, less healthy insured by shifting costs to younger, healthier insured. Not saying this is good or bad, it is just what it did (by design).

So whether you advocate for socialized medicine or not, the OP's particular circumstance are not a function of a lack of government intervention into healthcare.

I think a more apt suggestion in that regard would be to be cautious about the what you vote for, as there may be unintended consequences.

Probably both my post and your post should be removed, this feels a bit political (even though I am trying to skirt it).

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Watty
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Re: Paying half of my paycheck on health insurance?

Post by Watty » Tue Jun 04, 2019 4:00 pm

vu8 wrote:
Tue Jun 04, 2019 3:33 pm
Well said... I got my Bachelor's in Business in Winter 2018, which isn't a very useful degree as I encountered enormous difficulty finding a decent full time job. This call center job pays a lot more than my previous small jobs, one pays 8.55 an hour, the other pays 13 an hour driving vehicles from factories to parking lots under any elements including pouring rain... Any recommendations besides getting into 60k in debt and get a masters degree in finance...
Here are some;

1) Keep in contact with your college placement center. They may allow alumni to still find entry level jobs through them. There may be some company that really needs to hire someone now and would prefer not to wait for a December graduate. They may also be able to help you polish your resume and practice your interview skills.

2) If you don't have strong ties to the area you are in you might consider there would be better job opportunities in a different part of the country or even a different part of your state.

3) Keep in touch with classmates that did get better jobs. They may hear of openings where they are working.

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vu8
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Re: Paying half of my paycheck on health insurance?

Post by vu8 » Tue Jun 04, 2019 4:28 pm

SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:46 pm
what your next step is. Tell us your ideas, your plan.
For now I'll probably just have to suck it up and take this job as there is no other choices that is open to me at this moment. I am totally done with education so I'll keep looking for a job that carriers superior benefits and doesn't require working in the pouring rain.

k3vb0t
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Re: Paying half of my paycheck on health insurance?

Post by k3vb0t » Tue Jun 04, 2019 4:30 pm

vu8 wrote:
Tue Jun 04, 2019 3:33 pm
SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:25 pm
The high health care insurance premium is only half of your equation, and not the half you can do much about. Concentrate on the better job side of the equation. Call center jobs for most young people should be short term employment. What is your next step in order to increase your income and qualify for better benefits?
Well said... I got my Bachelor's in Business in Winter 2018, which isn't a very useful degree as I encountered enormous difficulty finding a decent full time job. This call center job pays a lot more than my previous small jobs, one pays 8.55 an hour, the other pays 13 an hour driving vehicles from factories to parking lots under any elements including pouring rain... Any recommendations besides getting into 60k in debt and get a masters degree in finance...
Agree w/SevenBridgesRoad.

Not trying to be harsh but you have a Bachelor's in Business in an economy with a reported unemployment rate of 3.6% and you're taking a job where you are competing with offshore (India, Malaysia, etc.) resources to do call center work. This is a problem.

Honestly, $19/hr for call center work seems high to me, but I live in a low cost of living area.

You need to move up the value chain. Think of things being done in business that can't be done by offshoring. For example, business development/sales.

marcopolo
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Re: Paying half of my paycheck on health insurance?

Post by marcopolo » Tue Jun 04, 2019 4:54 pm

vu8 wrote:
Tue Jun 04, 2019 3:05 pm
FireAway wrote:
Tue Jun 04, 2019 2:52 pm
Not strictly true... having access to an affordable employer plan makes you ineligible for a subsidy. "Affordable" means your share of the coverage is less than 9.56% of your household income. So, if the employer plan is obscenely expensive (as the OP originally asserted) then you can still get the subsidy.
https://imgur.com/SxwMaRW
https://imgur.com/PzN6raN
See, on the ACA website it didn't mention the income threshold, just saying "if your job offers a health insurance, you are out of tax subsidy"
Try these pages. Gives specific examples.

https://www.healthcare.gov/glossary/aff ... -coverage/
https://www.healthcare.gov/have-job-bas ... lace-plan/
Once in a while you get shown the light, in the strangest of places if you look at it right.

quantAndHold
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Re: Paying half of my paycheck on health insurance?

Post by quantAndHold » Tue Jun 04, 2019 8:11 pm

You should qualify for ACA subsidies since you are both low income and don’t have access to an affordable employer plan.

I would do that. And keep looking for a better job.

delamer
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Re: Paying half of my paycheck on health insurance?

Post by delamer » Tue Jun 04, 2019 9:16 pm

vu8 wrote:
Tue Jun 04, 2019 4:28 pm
SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:46 pm
what your next step is. Tell us your ideas, your plan.
For now I'll probably just have to suck it up and take this job as there is no other choices that is open to me at this moment. I am totally done with education so I'll keep looking for a job that carriers superior benefits and doesn't require working in the pouring rain.
If you had an overall GPA of 3.0 or a 3.5 in your major, I suggest you check out USAJOBS (the federal government’s job site).

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Nate79
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Re: Paying half of my paycheck on health insurance?

Post by Nate79 » Tue Jun 04, 2019 9:23 pm

vu8 wrote:
Tue Jun 04, 2019 2:36 pm
Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
xDDDDDD I technically get paid biweekly but yeah gotta sharpen my math. 320x(52/2)/39520=21.1%, still a massive chunk though... Heart is bleeding
You should edit the title to reflect 20% which is not close to "half"

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Tamarind
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Re: Paying half of my paycheck on health insurance?

Post by Tamarind » Tue Jun 04, 2019 9:26 pm

marcopolo wrote:
Tue Jun 04, 2019 4:54 pm
vu8 wrote:
Tue Jun 04, 2019 3:05 pm
FireAway wrote:
Tue Jun 04, 2019 2:52 pm
Not strictly true... having access to an affordable employer plan makes you ineligible for a subsidy. "Affordable" means your share of the coverage is less than 9.56% of your household income. So, if the employer plan is obscenely expensive (as the OP originally asserted) then you can still get the subsidy.
https://imgur.com/SxwMaRW
https://imgur.com/PzN6raN
See, on the ACA website it didn't mention the income threshold, just saying "if your job offers a health insurance, you are out of tax subsidy"
Try these pages. Gives specific examples.

https://www.healthcare.gov/glossary/aff ... -coverage/
https://www.healthcare.gov/have-job-bas ... lace-plan/
I agree with this. You should qualify for a subsidy since the coverage your employer is offering is above the threshold to be considered unaffordable. Consider calling a "navigator", a person who specializes in helping people figure out how to get health insurance on the ACA. You can search for someone in your area here: https://localhelp.healthcare.gov/#/

I bet your employer was surprised when you signed up for the insurance, OP. A plan like that is offered to dissuade employees from buying the insurance because they don't actually want to offer benefits.

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SevenBridgesRoad
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Re: Paying half of my paycheck on health insurance?

Post by SevenBridgesRoad » Tue Jun 04, 2019 10:37 pm

vu8 wrote:
Tue Jun 04, 2019 4:28 pm
SevenBridgesRoad wrote:
Tue Jun 04, 2019 3:46 pm
what your next step is. Tell us your ideas, your plan.
For now I'll probably just have to suck it up and take this job as there is no other choices that is open to me at this moment. I am totally done with education so I'll keep looking for a job that carriers superior benefits and doesn't require working in the pouring rain.
That's not much of a plan.

A plan has goals and milestones and steps and action items, with a timeline or calendar, and it is in writing. If you don't understand how to create a real plan, the career office at your college can point you in the right direction. There are easy to follow books on the topic of creating a job plan. Yes it's hard. Do it.

As you think of your written, stepwise plan, consider these: If there are literally no jobs available as you say, then you may be in too small of a community. Your plan would need to include research of other parts of your state and perhaps a move to a job-rich area, which right now is much of the country. Your plan should include development of additional skills and abilities. This doesn't have to be an MBA, but your plan probably needs an element of additional training which makes you more valuable. Your plan should include networking, as suggested in several previous posts. Most communities have business networking clubs you can participate in. Finding a trusted mentor might be a step. You need someone to be totally honest with you about any shortcomings. In a forum like this, we have no idea if you are a really nice reliable person or a lazy, difficult person (probably not, but if so, we wouldn't know that this was THE problem). A mentor can help with self-reflection in a way we can't here.

Finally, with a general business degree, you will need to find an entry level job in a business , not a temp agency at a call center, which for now is just how you put food on the table.
Retired 2018 | Love to work at nothing all day | 30:70 VTINX with two deferred single premium annuities and deferred SS | VPW Method | Sleeping very well at night

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dodecahedron
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Re: Paying half of my paycheck on health insurance?

Post by dodecahedron » Tue Jun 04, 2019 10:58 pm

Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
1) There are 26 two week pay periods in a year.

2) OP appears to be saying that his medical is 42% of his actual paycheck, which is not the same as his gross pay (the denominator you are using.) The amount written on your paycheck is not your gross pay but your net pay after all deductions. Depending on the amounts withheld for federal, state, FICA, 401k, and possibly other payroll deductions, e.g. mass transit pass, as well as the medical/dental/vision, he may well be right.

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dodecahedron
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Re: Paying half of my paycheck on health insurance?

Post by dodecahedron » Tue Jun 04, 2019 11:11 pm

HomeStretch wrote:
Tue Jun 04, 2019 2:37 pm
vu8 wrote:
Tue Jun 04, 2019 2:27 pm
HomeStretch wrote:
Tue Jun 04, 2019 2:11 pm
I am not an ACA expert. Did you provide your info at healthcare.gov for a quote to see if you qualify for a subsidy?
Shamefully, ACA will have no subsidy for people who "are already eligible for employer sponsored plans"...
The 42% in your initial post made it sound like your plan would not be considered “affordable” as defined by the ACA which (I thought) might make you eligible for a subsidy even if covered by an employer plan.
Dental and vision do not count in the affordability calculation, but greater than 9.86% of AGI is enough for IRS affordability criterion, so OP should qualify for ACA subsidy (unless he has significant income from another source.)

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dodecahedron
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Re: Paying half of my paycheck on health insurance?

Post by dodecahedron » Tue Jun 04, 2019 11:15 pm

FireAway wrote:
Tue Jun 04, 2019 2:52 pm
vu8 wrote:
Tue Jun 04, 2019 2:27 pm
Shamefully, ACA will have no subsidy for people who "are already eligible for employer sponsored plans"...
Not strictly true... having access to an affordable employer plan makes you ineligible for a subsidy. "Affordable" means your share of the coverage is less than 9.56% of your household income. So, if the employer plan is obscenely expensive (as the OP originally asserted) then you can still get the subsidy.
Slight correction to update for 2019. Criterion is now 9.86%.

https://www.shrm.org/resourcesandtools/ ... -2019.aspx

Ron Ronnerson
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Re: Paying half of my paycheck on health insurance?

Post by Ron Ronnerson » Tue Jun 04, 2019 11:42 pm

You might very well be able to qualify for a premium tax credit on the exchange.

Check out this link: https://www.healthinsurance.org/faqs/my ... insurance/

Here is a quote from the link: In 2019, a policy is considered “affordable” if individual coverage (for just you – not including your family – costs less than 9.86 percent of your household income in 2019). Household income is Modified Adjusted Gross Income as defined by the ACA.

My gross salary is around $115k and I qualify for a premium tax credit. The least expensive insurance that my employer offers would cost me $6,500/year to cover just myself (not any other family members). This would be my share of the cost and my employer contributes nothing toward health benefits. So, I put $51k or so into tax-advantaged space such as retirement accounts and bring my MAGI down below $64k. As a result, the insurance offered by my employer is considered too expensive per ACA since it is over 9.86% of my household income. I have a wife and kid as well and we all become eligible for the premium tax credit. Our insurance (to cover all family members) costs about $1400/month for gold-level coverage that we purchase on the exchange but our share is only around $200/month after the tax credit. If I were to purchase insurance through my employer, it would cost $2,000/month for my family of three.

On a side note, there can be other benefits from lowering MAGI as well for those who are near certain cut-offs. In our case, it also means qualifying for the Saver’s Credit (due to bringing income below $64k) and eliminating all income tax liability to the state of California (we itemize on state taxes and take three exemptions).

ssquared87
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Re: Paying half of my paycheck on health insurance?

Post by ssquared87 » Wed Jun 05, 2019 1:12 am

That doesn't seem too far out of line. As an individual, I pay $41 a month for healthcare and my employer pays $420 for a total of $440 a month. This is for a high deductible plan (although my deductible isn't high at all by market standards, I have a $1.5k in network deductible while most high deductible plans are higher than that)

I pay 21 for dental, employer pays 20 for a total of $41 a month. and for vision I'm paying $6/month employer pays $3 for a total of $9.

aristotelian
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Re: Paying half of my paycheck on health insurance?

Post by aristotelian » Wed Jun 05, 2019 6:23 am

Your W-2 should have a box for total amount paid by employer. I believe last year my contribution plus employer was something like $17k for family of four. For most of us these costs are hidden in the employer share, but if your employer doesn't subsidize much, those costs are going to sting. Without getting into politics, I think we can all agree that the cost of health Care is insane

PJmillennial
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Re: Paying half of my paycheck on health insurance?

Post by PJmillennial » Wed Jun 05, 2019 7:11 am

My employer offers insurance but the cost is astronomical for adding family so my wife and I were able to get a plan via the marketplace. Not much of a subsidy but a little is better than nothing.

I would contact someone about seeing if you qualify.

It sounds expensive until you see how our hospitals can bring people back from the edge.

FI4LIFE
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Re: Paying half of my paycheck on health insurance?

Post by FI4LIFE » Wed Jun 05, 2019 7:22 am

I might forgo insurance as a young, healthy individual. I know I will get lambasted for that but it's the reality of today's healthcare system.

delamer
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Re: Paying half of my paycheck on health insurance?

Post by delamer » Wed Jun 05, 2019 10:51 am

dodecahedron wrote:
Tue Jun 04, 2019 10:58 pm
Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
1) There are 26 two week pay periods in a year.

2) OP appears to be saying that his medical is 42% of his actual paycheck, which is not the same as his gross pay (the denominator you are using.) The amount written on your paycheck is not your gross pay but your net pay after all deductions. Depending on the amounts withheld for federal, state, FICA, 401k, and possibly other payroll deductions, e.g. mass transit pass, as well as the medical/dental/vision, he may well be right.
The OP said s/he gets paid twice a month, not every other week.

You may right about the OP using net v. gross as the denominator, but that doesn’t mean that is the logical way to think about it. Let’s say you had two people with the same salary and same health insurance premiums, but one saved 5% in a 401(k) and the other saved 10%. It wouldn’t make sense to say that the former paid a lower percent of earnings for health insurance just because her/his take home pay was larger.

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dm200
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Re: Paying half of my paycheck on health insurance?

Post by dm200 » Wed Jun 05, 2019 10:55 am

That premium is very typical for the costs of health insurance.

Regarding the ACA, I cannot cite anything here, now - BUT I recall that the ACA had provisions of some sort that allowed (I think) employees to "opt out" of employer coverage and enroll in ACA (and get the credit/subsidy) if/when an employee's health insurance premium exceeded a certain percentage of income.

Maybe someone here can elaborate or cite something.

Jags4186
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Re: Paying half of my paycheck on health insurance?

Post by Jags4186 » Wed Jun 05, 2019 11:06 am

FI4LIFE wrote:
Wed Jun 05, 2019 7:22 am
I might forgo insurance as a young, healthy individual. I know I will get lambasted for that but it's the reality of today's healthcare system.
Not sure why that’s the reality. It’s already been determined that the OP should go on the exchange to get an inexpensive healthcare plan. Sure, young people aren’t on blood pressure or cholesterol medication, but young people also live somewhat riskier lifestyles. A night out at the bar with one or two too many drinks can land a person in the ER. A healthy and active person can get hurt playing intramural sports (torn muscle or ligament, broken bone) or even just falling while hiking or biking. A $1000-$2000 bill is still better than a $15,000-$25,000 bill. Perhaps the OP lives a lifestyle where this is less likely to happen. But at the end of the day I see no reason why he must chance it.

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dodecahedron
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Re: Paying half of my paycheck on health insurance?

Post by dodecahedron » Wed Jun 05, 2019 11:09 am

delamer wrote:
Wed Jun 05, 2019 10:51 am
dodecahedron wrote:
Tue Jun 04, 2019 10:58 pm
Silk McCue wrote:
Tue Jun 04, 2019 2:16 pm
Yes. Insurance is very expensive. I understand your frustration.

BTW - insurance is 19.3% of your paycheck not 42%

$19 x 2080 hours = $39,520

(286 + 29 + 3) x 24 pay periods = $7,632

7632/39520 = 19.3% of your paycheck not 42%

Cheers
1) There are 26 two week pay periods in a year.

2) OP appears to be saying that his medical is 42% of his actual paycheck, which is not the same as his gross pay (the denominator you are using.) The amount written on your paycheck is not your gross pay but your net pay after all deductions. Depending on the amounts withheld for federal, state, FICA, 401k, and possibly other payroll deductions, e.g. mass transit pass, as well as the medical/dental/vision, he may well be right.
The OP said s/he gets paid twice a month, not every other week. OP later corrected to biweekly.

You may right about the OP using net v. gross as the denominator, but that doesn’t mean that is the logical way to think about it. Let’s say you had two people with the same salary and same health insurance premiums, but one saved 5% in a 401(k) and the other saved 10%. It wouldn’t make sense to say that the former paid a lower percent of earnings for health insurance just because her/his take home pay was larger.
OP did not say s/he paid a higher percentage of ¨earnings¨ and it is not clear that s/he is comparing themselves to anyone else or considering adjusting their 401k contributions, if any.

Percentage of take home pay paid for any particular category of expenses can still be a legitimately useful and meaningful way for a person to think about the scale or significance of any discretionary or potentially variable expense in a person´ś budget. The large percentage highlights its importance and salience and pushes a person to prioritize investigating whether there may be less expensive alternatives available. As it turns out, calculating a different ratio (medical premium divided by ACA MAGI) is the key to opening the door to those alternatives, but ACA MAGI is not inherently any more ¨logical¨ than gross earnings.

The point is that folks working on saving need to somehow get a handle on their particular major spending categories and computing ratios of various categories of expenses to take-home pay can be a useful and meaningful heuristic approach.

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