A Guide to Different Physician Benefits

A benefits package can make or break a doctor’s decision to accept a job offer. From vacation time to dental insurance, it’s important to understand the fine print before signing on the dotted line.

In this blog, we’ll explain some of the most common physician benefits offered to doctors.

What’s Typically Included in Physician Benefits?

If you’re a doctor considering a job offer, don’t overlook the importance of evaluating the benefits package. Below are some common benefits for a doctor:

Disability Insurance

Disability insurance should be at the top of your list of benefits. That’s because it serves as a safety net in case you’re unable to work due to illness or injury.

Most employers offer short-term disability insurance as part of a group plan, which covers conditions that prevent you from working for up to six months. It can replace a significant portion of your income (60%–80%) while you recover. However, these group plans may not meet your specific needs as a physician. This is where individual long-term disability (LTD) coverage comes in. It takes effect after six months and can provide benefits for several years, depending on your policy. Individual LTD coverage is recommended because it offers more flexibility and stays with you even if you change jobs.

Another thing to be aware of is that not all employer-offered plans provide “own-occupation” coverage. For example, if you are no longer able to practice in your specialized field but can still work in a different role, “own-occupation” coverage ensures that you still receive benefits. Before signing any agreements, carefully review your employer’s disability insurance plans. Check for any exclusions or exceptions that could leave you without coverage in case of illness or injury.

Medical and Dental Coverage

Many employers now offer high-deductible, low-premium plans that are more affordable without compromising coverage. The most common physician benefit options include PPOs and HMOs, giving you plenty of choices. While some organizations may cover the full cost of health insurance, it is more common for physicians to pay a portion of the premium for themselves and their families. But don’t worry, the split is usually 80–20, with the employer paying the majority. When it comes to dependents, the split is 70–30, ensuring they are also covered.

Prescription and vision coverage are often included, and larger organizations even offer dental coverage. The cost-sharing split for dental insurance is 70–30 for employees and 65–35 for dependents. However, keep in mind that smaller private practices may not provide dental insurance.

Lastly, it’s important to consider whether an organization offers COBRA benefits. These benefits can provide continued healthcare coverage for you and your dependents for up to 18 months after termination. That way, you can have peace of mind knowing that your healthcare needs will be taken care of even if your employment situation changes.

Understanding tax deductions for physicians allows for cost savings that can then be reallocated for your business.

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Retirement Savings

Employers are now offering a combination of defined-contribution plans to help their employees save for retirement. These plans are funded by contributions from both the employee and the employer. The most commonly offered plans are 401(k) and 403(b), but many medical groups and employers are going the extra mile by adding profit-sharing or money-purchase programs. In a profit-sharing plan, the employer is the sole contributor and the amount fluctuates based on the company’s profitability. On the other hand, money-purchase plans involve a fixed annual contribution based on the employee’s salary, with less variability. To make retirement savings even easier, some practices are using a combination of profit-sharing, money-purchase, and 401(k) plans.

Life Insurance for Physicians

Life insurance is essential for protecting your family’s financial future, regardless of your profession. But as a physician, it’s even more important for you to have the right coverage.

If you have loved ones who rely on your income, a solid life insurance policy is an absolute necessity. It ensures that they are financially supported in the event of your death, allowing them to maintain their standard of living and pursue their dreams. The rates and coverage options for life insurance vary from company to company, so it’s essential to explore multiple options before making a decision.

Student Loan Repayment

Loan repayment benefits are increasing and becoming an attractive incentive for top talent in the medical field.

These programs are designed to alleviate your financial concerns and can provide a significant annual payment of $15,000 to $30,000. While they typically have a limit of $100,000 to $150,000 over a lifetime, they still make a huge difference in reducing your student debt.
Loan repayment benefits are increasing and becoming an attractive incentive for top talent in the medical field. These programs are designed to alleviate your financial concerns and can provide a significant annual payment of $15,000 to $30,000. While they typically have a limit of $100,000 to $150,000 over a lifetime, they still make a huge difference in reducing your student debt.

Additional Benefits

From paid time off to wellness programs and even prepaid legal services, these additional physician benefits can make a huge difference in your overall job satisfaction and financial security.

So before you sign on the dotted line, take the time to familiarize yourself with the full range of benefits being offered to you. By knowing what’s available, you can recognize a favorable offer and negotiate with confidence.

Key Takeaways

Finding the right physician benefits can be a complex and time-consuming process, but with PRS by your side, you can rest easy knowing that you have a dedicated team supporting you every step of the way. Our experienced advisors are ready to meet with you and provide personalized insurance solutions based on your unique needs and goals. Contact us today to learn more.

Life Insurance: Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

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Advisory services offered through PRS Investment Advisors, a Member of Advisory Services Network, LLC. Tax services and insurance products offered through Physician’s Resource Services. Advisory Services Network, LLC and Physician’s Resource Services are not affiliated.

A Guide to Different Physician Benefits

What’s Typically Included in Physician Benefits?

Disability Insurance

Medical and Dental Coverage

Retirement Savings

Life Insurance for Physicians

Student Loan Repayment

Additional Benefits

Key Takeaways

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