BarkBox

Brooklyn FI has several clients at BarkBox and has helped them navigate their generous benefits program and develop a plan for their stock options. Here are some insights we’ve gleaned from their employer-sponsored benefits.

An outline of Bark’s specific benefits is below but we also recommend reviewing our best practices to maximize your open enrollment. Watch a webinar and download a cost comparison sheet here.

BarkBox provides a robust benefits plan for its full-time employees, and it’s time once again to make your elections for the upcoming year. Making educated choices this open enrollment can save you money and help you navigate whatever challenges lie ahead next year. We’ve put together this guide to help as you make these choices - feel free to share it with your colleagues and friends who may find it helpful.

Please note that benefits are subject to change at any time.

Health Insurance

BarkBox’s plan through Aetna includes three options:

  1. A High Deductible Health Plan (HDHP)

  2. Preferred Provider Organization Plan  (PPO)

  3. An Exclusive Provider Organization Plan (EPO)

  • The HDHP, like its name, has a higher deductible - $1,750 for individuals and $3,500 for families for in-network coverage. This means that aside from preventative care, the expenses are out-of-pocket until you reach your deductible. This plan is also compatible with a Health Savings Account (HSA). That’s a special account for medical expenses that you can contribute to on a pre-tax basis (payroll deduction), and withdrawal from tax-free for medical costs. This plan may be attractive to single folks who don’t have underlying conditions. The plan is offered at no cost to you.

  • The PPO plan is different, visits to in-network providers like your physician or a specialist, or a trip to the ER are covered by a co-pay - often $30 for your family doctor or $40. And the deductible in this plan is much lower - $250 for individuals and $500 for families for in-network coverage. Participating in the PPO plan will not allow HSA contributions, but it will allow you to save to Healthcare Flexible Spending Account on a pre-tax basis. 

  • The EPO plan is a third option that only covers in-network providers. In this plan, you only visit doctors within the Exclusive Provider Organization but you don’t need a referral to see specialists like a dermatologist. This has a deductible of $500 for individuals and $1,000 for families.

Which plan you choose depends on a variety of factors: how often you anticipate using your insurance, cash flow needs, and tax considerations. 

If you rarely go to the doctor aside from an annual physical, and don’t take prescription drugs, the HDHP may make sense - and allow you to stash away savings tax-free for medical costs later in life. However, if you want to know that a few trips to a specialist will simply cost your co-pay, and not a few thousand dollars, the PPO plan will have minimal impact on your cash flow. 

BKFI Tip: Consider electing the HSA plan, maxing it out every year, and paying for your expenses out of other savings to maximize the tax-free growth of the HSA! An HSA is a great way to save tax-free for things like LASIK eye correction, cosmetic dental work, and other surgeries. Because of the low cost of the PPO plan, we generally recommend it over the EPO.

Dental

BarkBox pays 100% of the premium cost for their Basic Guardian plan, with an option to upgrade for Premier coverage. Consider choosing the Premier plan if you anticipate orthodontic care needs for your family, or high out-of-pocket dental expenses in the upcoming year. The Premier plan will cover 90% of the expenses for things like fillings, root canals, repair of crowns, and other unpleasantries.

Vision

BarkBox pays 100% of the premiums for Vision coverage, which partially covers exams, lenses, and frames once per year. A vision exam will cost you just $10 with this plan. There is also a $150 credit for contact lenses and frames. The buy-up plan has a $200 credit for contact lenses and frames.

BKFI Tip: Out of pocket expenses for Vision and Dental are covered by your HSA - keep your receipt and get reimbursed tax-free.

Life Insurance

As part of your robust benefits plan, BarkBox provides 1x your annual salary in life insurance. You can purchase additional coverage of supplemental life insurance. You can purchase additional “Voluntary” life insurance in increments of $100,000, we recommend this for parents of young children or when there is only one working spouse.

BKFI Tip: Diversification matters. No, we aren’t talking about investments, we’re talking about life insurance. If you need life insurance, be sure not to link all of it to your employer’s coverage. Consider getting your own policy that you can keep even if you leave your job. 

Bonus BKFI Tip: Don’t forget to name a beneficiary when setting up your employer-sponsored life insurance coverage. Make sure the funds go where you want them, should something happen to you. 

Disability Insurance

BarkBox provides both short-term and long-term disability coverage. Short-term coverage is provided at no cost to you. Long-term disability kicks in when the short-term policy runs out and pays 60% of your base salary up to $10,000 per month. Long-term coverage stops paying when you’re no longer disabled, or reach retirement age. 

BKFI Tip: When your employer pays the premiums for disability insurance, the benefits are taxable to you when you receive them. Consider what 60% of your pay is, and then imagine income taxes coming out of that - that’s what your take-home would be under a long-term disability plan. 

Retirement Planning

BarkBox’s retirement plan is administered by Empower and does not offer a company match. The plan allows for both pre-tax and Roth contributions, up to a maximum of $19,500. Employees age 50 or older can make a catch-up contribution of up-to $6,500 annually. 

BKFI Tip: Have you maxed out your 401(k) for this year? If not, there’s still time to go in and update your contributions. For most of our high-income New York-based clients, the pre-tax “Traditional” 401(k) contribution makes sense.

Bonus BKFI Tip: Review your 401(k) beneficiaries annually and make sure they match your wishes.