Is it worthwhile for both me and spouse to purchase family coverage health insurance?

Question

I currently have family coverage health insurance through my employer that takes care of me, my spouse, and my infant son. It is about $160/month and has excellent benefits. Now my husband is eligible to buy health insurance through his employer. He could either get single coverage for $25/week for a plan with a $250 deductible, or $21/week for a plan with a $750 deductible. Or he could get family coverage at either $61/week for the lower deductible or $50/week for the higher deductible. The office visit copay is slightly higher with the higher deductible plan. Or he can decline coverage altogether. There is NO WAY I will be canceling our family coverage through my employer. So, is it worth for my spouse to buy dual coverage through his employer? If so, what considerations should we make when deciding to purchase either single or family, and deciding whether to do the lower or higher deductible?

Answer 1

Personally, I don't believe you need BOTH insurance coverages. You said yourself, your plan has excellent benefits. And if you're only paying $160 a month, that's an excellent rate. Your husband should decline coverage with his employer. Keep in mind, should something ever happened with your job or your coverage, you can always pick up insurance through your husband's job at that time.

Answer 2

The only reason to take his coverage would be is if his coverage offered items that yours did not. Make sure they are comparable, however, because each plan will look at the rules they have in place to determine who will be primary on your child. Some plans use a birthday rule (if your birthday is in April and your husband's in June, then you would be the primary on your child); there are a variety of other rules.

You have to look at the benefits, compare what is covered, and then decide if it's worth what you'll pay, compared to what the plan will pay. If you decide not to take his coverage, then put the money into a savings account, or, better yet, have him put it into a pre-tax account like a 401k. That way you get the tax benefit without having the expense.

Answer 3

Probably not worth it, for a couple reasons . . .

1. once he bought the coverage, HIS plan would be PRIMARY for him.

2. Having two policies does NOT necessarily get you out of all the copays and deductibles.

3. Having two policies DOES cause confusion from the claims end, about which insurance company pays what. You SURE don't want to be fighting with two insurance companies, because each says the other should be paying.

I think it would be more hassle than help.

Answer 4

The only way it would be worthwhile was if your plan didn't cover something that his plan did - like childhood vaccines. (There are some plans that just don't cover preventative visits, which I think is foolish, since an ounce of prevention... blah blah blah.) Then it would be worth it since your plan would deny the kids' well visits, then you submit the denial to his plan and they'd pay it.

Otherwise, having two plans is more hassle than it's worth.

BUT, if he takes that $25-$50 a week and socks it into a HSA (health savings account) or something like that, then you have it for a "rainy day" - most HSAs can be used for insurance copays, deductibles, and some for over the counter medications.

Answer 5

The decision should not be made so much on the cost but the quality of coverage and the stability of your employment. If something happens to either of your jobs, it will greatly affect switching companies due to "pre existing conditions." Unless you can forecast the future your job in deciding is way more complicated than just deciding by the cost or co-pays.

Answer 6

Don't both buy insurance - the insurance companies get together and to a "coordination of benefits", so you don't end up having one company your your deductible.

Remember, even if he turns the insurance down, if something happens to your insurance, that is a "change of family status" and your husband can reapply for the health insurance, even when it's not open enrollment.

I would just keep yours and save the money for something else.