If you’re reading this, there’s a good chance you’re about to turn 26, or you just did.
First, welcome to the world of figuring out benefits on your own. If that sounds confusing, frustrating, or like something you would rather deal with later, you are not alone.
The good news is that it does not have to be overwhelming. This is a quick guide to the basics. What benefits are, what the common terms actually mean, and when you can make changes. No jargon. No unnecessary details. Just what you need to get started.
At Shive-Hattery, we know benefits can feel complex, especially when you are making these decisions for the first time. That is why we created this Benefits Basics series. Our goal is to explain common topics in plain language and help you feel confident making informed decisions.
BEYOND THE BASICS
Meet Your Benefits Guide
Benefits can feel complicated, especially when you’re navigating them for the first time. Fortunately, you don’t have to do it alone.
Meet Kate Yoder, Human Resources Business Partner based in Cedar Rapids. Kate has been with Shive-Hattery for eight years and helps employees understand benefits, wellness programs, and other resources that support them throughout their careers.
Fun fact: Kate’s Shive-Hattery journey actually started as an HR Intern before she returned to the firm full-time. Outside of work, she’s often cheering on the Chiefs, tackling home renovation projects, camping with her family, or keeping up with her energetic dog and young son.
Why Turning 26 Is a Big Deal for Benefits
For many people, turning 26 means it is time to come off a parent’s or guardian’s health plan. In most cases, coverage ends after your 26th birthday. If you do not make a plan, you could end up without coverage, and even basic medical care can become expensive quickly.
The upside is that this transition qualifies as a life event. That gives you a limited window, typically 30 days, to enroll in your employer’s plan.
If you feel a little behind, don’t stress.
You do not need to be a benefits expert. You just need to take the next step.
What Benefits Are Actually For
Benefits are about more than health insurance. They are designed to support your health, protect your income, and help you plan for the future, so you can stay focused on your career and your life outside of work.
Protect Your Health
- Medical Insurance: Covers doctor visits, hospital stays, prescriptions, and preventive care like annual checkups and vaccines. This is typically your most essential benefit.
- Dental Insurance: Covers cleanings, X-rays, fillings, orthodontics, and preventive dental care.
- Vision Insurance: Helps pay for eye exams, glasses, and contact lenses. It is often low-cost and easy to use annually.
Protect Your Income and Future
- Disability Insurance: Provides financial support if you cannot work due to illness or injury. Short- and long-term disability are company-paid at Shive-Hattery.
- Life Insurance: Provides a benefit to your beneficiaries, with options for additional coverage and long-term care support.
Prepare for the Unexpected
- Accident, Hospital, and Critical Illness Coverage: Provides fixed payments for events like fractures, hospital stays, or major diagnoses such as cancer or organ failure.
As an employer, Shive-Hattery contributes to the cost of benefits and reviews offerings each year to stay responsive to employee needs. You do not need to become a benefits expert overnight, but understanding the basics puts you in a strong position to choose what works best for you.
“When I turned 26, I expected benefits to be much more complicated. Having clear resources and people to talk to made it much easier to make decisions.” — [Employee Name], [Role]
Common Benefits Terms, Made Simple
The language of Benefits can feel more complicated than it needs to be. Here are the key terms to know:
- Premium: The amount deducted from your paycheck each pay period to maintain coverage, whether you use it or not.
- Deductible: The amount you pay out of pocket before your insurance begins sharing costs. Think of this as your starting line.
- Copay: A flat fee you pay at the time of services, such as a $30 office visit.
- Coinsurance: A percentage of costs you share after meeting your deductible. For example, you pay 20 percent, and insurance covers 80 percent.
- In-Network vs. Out-of-Network: In-network providers offer negotiated rates, which means lower costs for you. Out-of-network care typically costs more.
- Maximum Out of Pocket: The most you pay in a calendar year. Once you reach this amount, your plan covers additional eligible expenses.
- Health Savings Account (HSA): A pre-tax savings account for medical expenses that rolls over year to year.
- Flexible Spending Account (FSA): Another pre-tax option, but funds typically must be used within the plan year.
When You Can Make Changes
Outside of open enrollment, benefit changes are usually limited to qualifying life events. Knowing what counts can save time and stress.
Common qualifying events include:
- Turning 26 or losing coverage under a parent’s plan
- Marriage
- Birth or adoption of a child
- Loss of other coverage, such as through a spouse
In most cases, you have 30 days after the event to update your elections. If the deadline passes, changes may need to wait until the next open enrollment period. Acting early gives you more flexibility and fewer surprises.
What to Do Next
If you are not sure where to start, focus on these steps:
- Review Plan Details: Compare plans, costs, and provider networks. Start with the Summary of Benefits for a clear overview.
- Ask Questions: Reach out to the Human Resources department early. Getting answers ahead of your deadline gives you time to make a thoughtful decision.
- Enroll or Decline: Log in to the benefits portal to review your options and make your selections. You must actively choose to enroll or decline.
At Shive-Hattery, no question is too basic. Human Resources is here to help you understand your options, confirm deadlines, and walk you through the process step by step. Starting early can make the experience much more manageable.
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