Questions About Health Insurance Coverage at a New Job

When starting a new job, many employees consider the benefits package as a part of the salary options. Having employer-paid health insurance can greatly impact an individual's budget, especially if she was paying out-of-pocket costs before. Knowing what the insurance policy entails and what type of options are available is an important part of the job search and can be a deciding factor in whether someone accepts a job offer.

When Will My Coverage Start?

• Each company is different and how the company handles health insurance is no exception. When starting a new job, make sure to ask when your health insurance coverage will begin. Some companies will provide coverage from the first day of employment, while others require that an employee pass a probationary period before coverage begins. Others may require that the employee wait until the next enrollment period before receiving insurance benefits. New employees may have to wait for three months or more before receiving coverage. Asking an employer when the policy will be in effect can help you financially prepare for a lapse in coverage.

Who Pays for the Policy?

• Depending on the company, employees may not have to pay any out-of-pocket premiums for health insurance coverage. Some companies will pay the premiums for all employees, while others will require that employees pay small amounts toward their coverage. This is also a time to ask how premiums are paid and how often payments will be required. In a majority of cases, the premiums will be paid as a deduction from an employee's paycheck. Since the premiums are taken from the employee's earnings, the total amount per paycheck will depend on how often the employee is paid. Other companies may accept payment via check or credit card depending on their preferences.

Are Preexisting Conditions Covered?

• Individuals who have a preexisting condition may refrain from looking for a new job in fear of not having the condition covered by the new insurance plan. However, there are rules in place that help ease the transition for those who do have a condition. For example, if an individual has had a group health insurance policy for at least one year before changing jobs, the new insurance plan cannot impose another preexisting condition exclusion period. Individuals who have not had prior coverage may be subject to a 12-month waiting period for preexisting conditions. This question may have to be raised to the insurance provider over the employer, depending on the condition and policy.