This blog explores a part of our video series, "You Made Partner, Now What" To learn more about health insurance, sign up for the series and watch Week 3: Benefits. Watch Here!

Achieving partnership at a law firm is an exciting and significant step in your career. However, this promotion often comes with significant changes to your benefits package, especially when it comes to health insurance.

Unlike associates, who typically receive firm-subsidized health insurance, partners are often required to pay the full amount of their firm’s provided coverage or make arrangements for their own health insurance. Understanding your options and the implications of this change is critical for ensuring your and your family's well-being.

Why Health Insurance Is Now Your Responsibility

Since your health insurance is no longer subsidized by the firm, you are now responsible for paying 100% of the cost of your health insurance. This change reflects your new status as a partner and owner within the firm, carrying both the perks of ownership and the responsibility for your own benefits.

This transition can have a noticeable impact on your finances. While paying the full cost of health insurance may present a higher upfront expense, it's important to note that these payments can now be considered a tax deduction for you, which offers a potential offset to some of the increased expense. However, even with this tax advantage, the overall expense is generally higher than what you experienced as an associate.

Why Getting Health Insurance Right Is Important

Health insurance is a crucial component of your overall financial planning. Not only does it protect you from unexpected medical costs, but it also influences your monthly budgeting and long-term financial health.

With the potential for higher out-of-pocket costs, choosing the right health insurance plan becomes a pivotal decision. It affects not just your finances but also your peace of mind. Fortunately, there are a number of options to consider.

Exploring Your Options

Given these changes, it's crucial to re-evaluate your health insurance options. The firm may still offer health insurance plans for partners, but without the subsidy, the dynamics of choosing the right plan for you and your family shifts. Here’s what to consider:

• Firm-Sponsored Plans: While still an option, you'll be covering the full premium. Assess these plans carefully to determine if they offer the best value for your needs.

• Marketplace Plans: With a variety of plans available, the Health Insurance Marketplace could provide more economical options that are better suited to your financial situation and healthcare needs.

• Spousal Insurance: If available, joining a spouse’s plan could be a more cost-effective choice. Always compare coverage and costs to ensure it meets your requirements.

• Health Savings Accounts (HSAs): Coupled with a high-deductible health plan, HSAs offer tax advantages and a way to save for future medical expenses, making them a potentially beneficial component of your health insurance strategy.

The plan you choose will be specific to you and your situation. So be sure to explore each option thoughtfully, with a financial advisor if necessary.

How Do You Choose a Plan?

Selecting the right health insurance plan involves weighing several key factors. It’s important to start with a clear understanding of your healthcare needs and financial goals so that you can navigate the various options available.

• Coverage Needs: Evaluate the type of medical services you and your family require. Consider prescription medications, chronic conditions, and potential surgeries or hospital stays.

• Network: Ensure your preferred doctors and hospitals are in-network to avoid higher out-of-pocket costs.

• Premiums vs. Out-of-Pocket Costs: Balance the monthly premium against deductibles, copays, and coinsurance. Lower premiums often mean higher out-of-pocket costs when you need care.

After considering these factors, reaching out to a financial or insurance advisor can provide additional clarity, helping to refine your choice and ensure it aligns with your overall financial strategy.

Choosing Your Plan with Confidence

Selecting the right plan as a partner involves balancing your healthcare needs, financial goals, and the new costs you will incur. Careful evaluation and perhaps consultation with a financial advisor are key steps in making a decision that aligns with your changed status and ensures your and your family’s well-being.

Whether you're evaluating firm-sponsored plans, considering joining a spouse's insurance, or exploring the Marketplace, our expert consultation can guide you through the complexities. Contact us today for a personalized consultation, and let's ensure your health insurance strategy aligns with your new role and financial goals.

Be sure to learn more about benefit changes and financial planning strategies in the video series, "You Made Partner, Now What?"