Personal needs, family situation, and cost are factors to consider when evaluating benefits. Also, consider whether any employer-provided benefits will be available if employment ends and, if so, at what cost. Some benefits include health insurance and healthcare savings accounts, bar and court admissions, Continuing Legal Education (CLE), retirement benefits, and others.
Health Insurance
Health insurance coverage is one of the most common and highly sought-after benefits. It may or may not be offered by an employer, and often, there are several plans from which to choose. Either way, meeting enrollment deadlines is vital to ensure that you have insurance coverage as soon as it is available to you. Even when offered by an employer, these insurance plans can change yearly or have waiting periods before you can join. Depending on the plan, you may be required to pay premiums.
Insurance Premiums
Insurance premiums are monthly or annual payments made to access insurance coverage, similar to car insurance premiums or an Amazon Prime subscription fee. If the coverage is employer-provided, pretax deductions from the employee’s paycheck may be deducted. For private health plans, payment options may vary.
An employer may also pay all or a portion of the premium, depending on whether it is for individual or family coverage. Non-employer groups with large memberships may sometimes have plans with premiums that are lower than plans available to an individual who is not a member of a large group.
Deductibles
Other terms you will see in your decision-making process when choosing the right health insurance for you include deductibles, copays, and coinsurance. Deductibles are an amount that you must pay personally before insurance starts to pay out.
Copays
A copay is a fixed amount that you pay to a healthcare provider for a certain service or medication, typically after you have already met your deductible. The copay amount will vary depending on the type of service, provider, and other factors.
Coinsurance
Coinsurance is a cost-sharing arrangement in which the insurance plan pays a portion of a given service, and you pay the remainder after you have paid the deductible. Usually, the coinsurance cost is a percentage of the total cost of a service. For example, in a 70/30 coinsurance plan, insurance pays 70 percent of the total, and the patient pays 30 percent.
Insurance Networks
Adding to the varied and complex considerations needed to decide what health insurance plan is right for you, another layer to consider is the networks each plan has. Many plans have ‘in-network” and “out-of-network” doctors, hospitals, and healthcare providers. The amount that you pay and whether insurance will pay any of the cost is dependent on whether your choice of provider is “in-network.”
If your preferred healthcare provider is out-of-network, chances are you will be paying either entirely out of pocket or a larger sum. The network of healthcare providers that a patient has access to depends on the insurance plan. Most plans will have a website where you can look up the healthcare providers in your area.
Health Insurance Plans
PPO, HMO, and HDHP Plans
Generally, there are three types of medical insurance plans: PPO, HMO, and HDHP. A PPO is a traditionally structured plan where the patient can usually go to a doctor without a referral from a primary doctor. Monthly premiums are generally higher than other types of plans, but there are set amounts the patient copays for non-preventative services. An HMO is a closed network plan where the patient must get a referral to see a specialist and usually must go to an “in-network” provider. An HDHP (High Deductible Health Plan) usually has a lower monthly premium, but the drawback is that a higher deductible must be met before full coverage is available. With an HDHP, it is usually suggested that a health savings account (otherwise known as an HSA) be obtained to help save for the cost of the deductible.
Dental and Vision Plans
Dental and vision plans are generally very similar. Dental plans usually cover one or two dental visits a year, including cleanings, and will cover more complex services at various rates. Vision plans generally cover a yearly vision check visit and a set dollar amount for contacts or glasses. Like health insurance plans, there may be a waiting period before dental or vision insurance coverage is available for a specific service, and some services may not be covered.
When deciding what plan is best for you, it may help to calculate health, dental, and vision care costs for both anticipated and worst-case scenario needs. Breaking down the costs will help you determine which plans work best for you, your family, and your budget. If offered by an employer or non-employer group, also consider enrolling in a healthcare-related account because it could help cover some health, vision, and dental care costs.
Healthcare Savings Accounts
There are three healthcare-related accounts, some of which might be offered as an employer or non-employer group benefit—an HSA (Health Saving Account), an FSA (Flexible Savings Account), and an HRA (Health Reimbursement Account). There are differences in when and how these accounts can be used. These accounts may help you pay for supplies and health, vision, or dental services that insurance may not cover. Understanding their differences and uses could help you avoid losing money or paying a penalty. To learn more about health, vision, and dental insurance plans, coverage, options, and healthcare-related accounts, visit www.healthcare.gov and www.irs.gov.
Professional Related Benefits
Bar and Court Admission
Just passing the bar exam in your state is not enough to practice law, and newly licensed attorneys must pay annual dues to their state bar. Some employers may pay for or reimburse bar admissions and various bar association membership fees as a category of benefits offered.
This might include your initial and annual state bar association dues and the dues for any state bar committees you join with employer approval. Some employers will also pay for or reimburse membership fees or dues for local bar associations or select voluntary bar associations, such as the American Bar Association. The federal courts, including the federal circuit courts of appeal and the numerous statewide US district courts, require attorneys to pay an admission fee. Payment for or reimbursement of these fees is another benefit your employer may provide.
Additionally, some employers may offer to pay for your bar exam registration fees as a benefit meant to entice soon-to-be law grads to work for them. It is worth enquiring with your future employer to see if this category of benefits is available to you, as annual dues can add up quickly.
Continuing Legal Education
Once admitted to practice law, most states require an attorney to take CLE courses/seminars and post the state-required number of CLE hours during the state’s reporting period. While some CLE courses/seminars may be free, many are not. A benefit your employer may offer is the payment or reimbursement for CLE courses/seminar attendance. The benefit may cover just the registration fee for the CLE or all CLE-related costs, including travel, hotel, and meal expenses. Many employers who provide payment or reimbursement for CLE courses/seminars may require advance approval from the employer to receive the CLE benefit. Just because a CLE sounds interesting to you doesn’t mean your employer is willing to pay or reimburse you for attending it.
In fact, some state bar associations and voluntary bar associations offer free or discounted CLE for their members. Additionally, third-party providers offer state-bar-compliant CLE packages at a cost that may be much lower than individually chosen courses or seminars. It is best to check with your state bar website to see if there are any free or discounted CLE courses for members.
Retirement Benefits
Another sought-after benefit for many is a retirement savings plan. Some employers may offer participation in a retirement plan, a common one being a 401k. Sometimes, an employer may also offer matching contributions up to a set annual dollar amount. Governmental employers and some private employers may offer pension programs or other retirement plans that you might join.
Because retirement benefits are intertwined with long-term financial planning and can be complex, it is worthwhile to reach out to a financial advisor to help determine what type of plan is right for you and how to implement savings strategies for your future retirement.
Miscellaneous Benefits
While health insurance and retirement plans are the most common forms of benefits, some employers extend their benefits packages to include a wider range of other benefits.
Relocation or Parking Reimbursement
This range can include reimbursement for a portion of your relocation or moving expenses or even paid or reserved parking spaces. For some, that benefit may include evening and weekend parking for social and entertainment events. If you have ever paid daily parking rates for a meeting or a social event, those dollars can add up very quickly.
Leave Time
Another benefit that employers may offer is leave time. Time off work is valuable and can help foster a healthy work-life balance. Some employers may offer paid vacation, sick leave, bereavement leave, or personal time off (PTO) immediately or after a designated period. Be sure to find out when these benefits will accrue and when they will be available.
Wellness Benefits
An employer may also offer benefits to help encourage employee physical health, including full or partial payment of gym or social club membership.
Child or Pet Care Reimbursement
Child or pet care expense reimbursement is another potential employer benefit.
Tech Reimbursements
Additionally, with the increasing focus on technology in the legal field, some firms may offer a firm cell phone or laptop for you to use for firm business. If a laptop or cellphone is not provided, an employer may also reimburse you a set monthly amount for your personal cell phone charges if you use your personal cell phone for firm business.
Flexible Work Schedules
The benefits offered by a firm may not necessarily be directly tied to payment or reimbursement of an expense. For example, some firms may offer you a flexible work schedule that fits really well with your personal situation. You might be permitted to work from home or another remote location, saving you gas or other travel expenses in the long run.
Casual Dress Code
Additionally, an employer might have a casual dress code policy that reduces your clothing expenses. Building and keeping a professional wardrobe can be stressful and costly for a new law graduate, so a relaxed dress code policy can save you money at the start of your career.
Pet Policies
An employer may permit employees to bring their pet to work, saving you time by not having to go home on a lunch break to care for your pet or even saving you pet daycare costs. These subtle benefits can provide peace of mind and help you balance your budget as a new attorney, in addition to helping you find a work/life balance that works for both you and your employer.
Bar and Trade Association Benefits
Employer-provided benefits are not the only option available to new attorneys, as many state bar associations, voluntary bar associations, and industry/trade associations may offer their members additional valuable benefits. These could include free or discounted initial business entity organization documents, special rates for medical/dental/vision insurance, discounts or reductions on legal research databases, free or discounted CLE, and discounts for travel, just to name a few.
Explore Every Available Benefit Option
Whether provided by an employer or a non-employer group, a wide variety of benefits may be available to you. They are all worth exploring whether you already have a job, are job hunting, or are planning for your future as an attorney. Why? Because it’s never too soon to start thinking about benefits.
