Can I Say No to Health Insurance and Get a Raise Instead? (2024)

FAQs

Can I negotiate a higher salary if I decline health insurance? ›

Some organizations may offer a cash-in-lieu of health insurance option, but if they do not you may be able to negotiate more salary because you won't be taking the insurance.

After receiving an offer, don't be afraid to negotiate a higher starting salary in light of the lack of benefits, Patrick says. “It doesn't hurt to ask, and the worst they can do is tell you no,” she says. This can be key as you contemplate: Should I take a job with no benefits?

There's no reason why you cannot just point out that you've saved the company thousands of dollars and would like to have a raise. It's not tacky to ask for more money and it's not tacky to point out that you've saved the company far more than you're asking for.

It is legal to offer employees cash in lieu of health plan benefits, but it has to be done appropriately through a cafeteria plan that includes a “cash-in-lieu” agreement.

If the benefits and pay do not align with your skills, qualifications, career level or education, you can negotiate for more money or better benefits. It is also acceptable to suggest other forms of compensation, such as stock options or extra vacation days.

So, can you lose a job offer by negotiating salary? Technically yes, though it's highly unlikely if you do it right. One thing is for certain: you won't get what you want if you don't ask for it!

For example, if a company offers you a low salary, you can say, "Thank you so much for the offer. If possible, I would like a week to read through the details before giving you my final answer."

Although you can't negotiate your car insurance rate, you're not contractually obligated to stay with your insurance company.

You're Taking a Lowball

“It's a mistake not to negotiate because companies never lead with their best offer,” said Anna Papalia, CEO of Shift Profile, which specializes in teaching hiring managers and job seekers how to interview better. “To just simply accept means that you are accepting the worst offer.

If you don't have health insurance, you're at much greater risk of accumulating medical bills that you may not be able to pay. In a worst-case scenario, you could be sued and have your wages garnished. You might even be forced into bankruptcy.

Is it even worth it to have health insurance? ›

If you don't have health insurance, those stories can sure get you thinking, Do I need health insurance? The answer—yes! Health insurance has a reputation for being expensive and confusing, but it can also be the only thing standing between you and financial disaster if you ever need medical care.

A good rule of thumb for how much you spend on health insurance is 10% of your annual income.

You may choose not to use insurance if the service you need isn't covered, or it's less expensive if you pay out of pocket. In most cases, providers and facilities must give you an estimate when you schedule care at least 3 business days in advance, or if you ask for one.

The high cost of insurance was reported for more than half of all uninsured nonelderly adults and uninsured children as a reason for their uninsurance. Job-related reasons were the second most common explanation for uninsurance for both uninsured adults (41 percent) and children (31 percent).

Benefits you can typically negotiate include:

Better health benefits. Work flexibility like remote work, work-from-home or work-from-anywhere days, flexible hours, a 4 day work week, etc.

When the company is in financial trouble: If a company is experiencing financial hardships, such as during an economic downturn, it may not be the best time to negotiate salary. In these instances, companies might be more focused on cost-cutting measures and may not have the resources to accommodate salary increases.

As a healthcare professional, negotiating your salary can be one of the more intense parts of the job interview process. If you come on too strong, you might knock yourself out of the running. If you don't assert yourself, you may not get paid what you're worth. Yes, salary negotiation is a bit of an art.

Tact is key. It's never pleasant or easy to turn down an employee's request, so act accordingly. Remove emotion from the equation and let your employee know you thought about this and did your research as well. Presenting them with facts will help illustrate why you won't grant them a raise.

Don't forget to negotiate benefits. Overall, benefits can make up to 30 percent of your salary—no small sum. Your compensation should meet all of your needs, not just monetary ones.