How to Compare Your Partner’s Benefits With Yours

Millions of employees are sifting through their workplace benefits before their employer’s open enrollment deadline. One of the biggest questions they will settle is whether to join their partner’s benefits plan or keep benefits separate.

“This is one of the most daunting financial tasks that people face on an annual basis,” said Kevin Mahoney, a certified financial planner and founder of Illumint, a firm that focuses on young couples.

With rising inflation and pandemic-related health costs, couples should take a strategic approach to open enrollment this year to make sure their benefits square with their money goals, say financial planners. A recent survey of nearly 400 employers by the advisory company Willis Towers Watson revealed that employers are expecting the cost of health-related benefits to jump 5.2% in 2022 because of pandemic-related factors.

Comparing both packages can be tricky—the perks of an enticing benefit of your partner’s offering could be canceled out by a stipulation in yours. Joining your partner’s dental insurance might cover a cosmetic procedure, for example, but also get you both closer to your annual or lifetime maximum.

Calculate out-of-pocket costs

When deciding on which partner’s benefits to enroll in, consider the upfront costs. There is the monthly premium that employees pay from their checks and there is a deductible, which is the out-of-pocket dollars that members pay—which includes copays—before the insurance kicks in.

Experts warn to check for spousal surcharges, which are monthly fees that employers charge for adding a partner to your insurance plan. Spousal or partner fees can range from $25 to hundreds of dollars a month, said Ms. Arthur-Price.

Situations that trigger fees vary from plan to plan, from adding a partner who already has insurance coverage—or has been offered coverage at their own job—to, more recently, adding a partner who is unvaccinated. 

Ms. Arthur-Price also noted that employees should read the fine print. For example, will the annual threshold for your deductible be met by a single family member, or the family as a whole? That detail could be the deciding factor in your choice to separate or join benefits, she said.