Final answer:
When a new member enrolls in a health plan with no past history, the sponsor can pay a full or pro-rated initial compensation. Health insurance typically involves a deductible and cost-sharing mechanisms like co-insurance or co-payments. Total compensation review is crucial when assessing job offers.
Step-by-step explanation:
When a member enrolls in a plan and has no prior plan history, the plan sponsor may pay the full year initial compensation amount or a pro-rated amount if the enrollment occurs mid-year. Health insurance plans typically have a deductible, a set amount that must be paid out-of-pocket before insurance starts to cover costs. After the deductible is met, some plans require cost-sharing, where the insured must pay a certain percentage of costs, known as co-insurance, or a fixed co-payment for specific services.
Ultimately, the total compensation, which may include employer contributions to health insurance, retirement plans, and other benefits such as Medicare or unemployment insurance, should be considered when evaluating a job offer. Interested parties might ask if a total compensation package compensates for lower pay or if there is room for renegotiation of benefits or salary after a set period from the start date, usually 6-12 months. In some countries, such as the United Kingdom and Canada, health insurance is provided through government-run programs, eliminating the need for employer-based payment options.