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Employer HMO vs personal health insurance

A company HMO is a good benefit, and you should use it. The question is what it does not do: it belongs to the job, it often covers only you, and it caps what it pays each year. A personal plan is yours regardless of employer. For most employees the answer is to keep the first and add the second.

Side by side

Who owns it

Employer HMO

Your employer arranges it.

Personal plan

You do.

If you change jobs

Employer HMO

It ends, and you start again elsewhere.

Personal plan

It stays with you.

Who is covered

Employer HMO

The employee, and sometimes dependants, often at extra cost.

Personal plan

The people you choose to include.

Yearly limit

Employer HMO

Usually a cap on what it pays each year.

Personal plan

Set by the plan you choose, and can be larger.

When you are older or unwell

Employer HMO

Cover through work can end when the job does, when it may be harder to start elsewhere.

Personal plan

Starting while you are healthy is usually easier than later.

Cost to you

Employer HMO

Usually paid by the employer.

Personal plan

Paid by you.

Where each one falls short

Employer HMO

  • It stops when your employment stops.
  • It may not cover your family the way you need.
  • The yearly cap can run out.

Personal plan

  • You pay for it yourself.
  • Waiting periods and exclusions apply.
  • It is more to manage than a benefit you get by default.

How to decide

  1. 01

    Keep using the employer HMO. It costs you nothing and covers everyday care.

  2. 02

    Ask what would be left for you and your family if you lost the job and needed care that month.

  3. 03

    Start a personal plan while you are healthy and employed, because starting later is usually harder.

Common questions

What happens to my HMO if I resign?

It typically ends with your employment, so check your company’s terms. A personal plan avoids the gap.

Does my employer HMO cover my family?

It depends on the company plan. Some cover dependants, often at extra cost. Check your benefits guide or ask HR.

Can I start a personal plan while employed?

Yes, and it is often the best time, because you are working, likely healthy and can choose a plan at your own pace.

General information only. It is not a quote, and it is not legal, tax or investment advice.

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