By Mike Gibbons, RICP®
Abbott Laboratories/AbbVie offers an excellent health insurance plan to meet the needs of you and your family. It’s important to understand the different options available and choose your plan carefully. We help employees choose a plan that fits within their budget, medical needs, and applies toward their preferred care providers.
Medical Coverage
Abbott offers medical, dental, and vision benefits for eligible employees, including their spouses, domestic partners, and children up to age 26. There are two national medical plans available. Both include preventative care and cover the same services and providers, but they differ in how and when the premiums are paid.
Health Investment Plan (HIP) PPO
This plan is characterized by low paycheck contributions and a higher deductible. Because the paycheck contributions are lower, you will be required to make additional payments at the time of service in the form of copayments and coinsurance.
This plan provides access to more than 1,600 preventative medications for free. It also includes access to a health savings account (HSA), which allows you to contribute pre-tax dollars to cover expenses. Not only that, but Abbott will contribute to your HSA on your behalf.
If you complete a short wellness assessment, you may qualify for free coverage in the following calendar year.
Traditional PPO
The traditional PPO requires higher paycheck contributions, but you will pay less out-of-pocket expenses at the time of service. Which healthcare plan you choose is entirely up to you and should be chosen based on your specific financial situation. Abbott reports that the majority of employees are currently enrolled in the HIP PPO plan and that internal research has suggested that many of the employees enrolled in the traditional PPO would actually save money in the HIP PPO plan instead.
Regardless of which plan you choose, both are available with the UnitedHealthcare (UHC) or Blue Cross Blue Shield (BCBS) network.
Dental Coverage
Abbott’s dental coverage includes:
Exams
Cleanings
Fillings
Orthodontics
Restorative services
Vision Coverage
Abbott’s vision coverage includes:
Exams
Prescription lenses
Frames
Contact lenses
Discounts on select services
Flexible Spending Account (FSA)
Abbott also offers an FSA, which allows eligible employees to make tax-free contributions to cover out-of-pocket expenses. FSA funds can be used toward healthcare expenses like copays, coinsurance, prescriptions, glasses, contacts, and LASIK surgery. Funds can also be used for dependent care expenses such as child and eldercare.
Keep in mind that any amount contributed to an FSA must be used by the end of the year, it will not roll over to the next year.
Retiree Health Coverage
Abbott health insurance will automatically end at retirement unless you specifically apply for Retiree Health Coverage. You are eligible to apply for this coverage if:
You worked for Abbott for at least 3 years and you were 65 when you retired
You were eligible for health insurance as an employee
You are eligible to receive retirement benefits (at least age 55 with 10 years of service at the time of retirement)
Your portion of the premium will be based on years of service. Enrollment for Retiree Health Coverage is open between one month before and 31 days after your retirement date.
Questions About Your Health Coverage?
We at Gibbons Financial Group specialize in working with Abbott employees, and we can help you navigate decisions about your healthcare coverage. Call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.