Health, Life and Dental Coverage

TxO provides a $200,000 life insurance policy to all physicians within the group.

Health insurance is provided for the family through a variety of plans offered through Blue Cross / Blue Shield.   Choices available are as follows:

          • Basic Consumer’s Choice Plan

          • Consumers Choice Plan

          • PPO I Plan

Deductibles, out of pockets, maximums, co-insurance and other benefits vary.  A Health Savings Accounts is available for high deductible plans.  Dental coverage is available through MetLife and you may receive benefits from a dentist of your choice or from a contracting dentist through the Plan provider.  Contracting dentists have agreed to charge negotiated rates.  Services are classified as preventative, basic, major and orthodontia.  Benefits may vary depending on the service.

See the Employee Insurance Enrollment Guide for additional details on benefits provided by TxO.

Medical and Dependent Care Reimbursement Accounts

TxO offers the opportunity to set up flexible spending accounts to pay eligible health care expenses and dependent care expenses on a pre-tax basis.

Health and dependent care reimbursement eligibility is 31 days.

401k Plan

Physicians who wish to save for retirement can make individual, pre-tax contributions to the 401(k) Plan.    The maximum salary deferral for 2024 is $23,000.  A physician is eligible to participate beginning with their employment and eligible for the employer contribution after 6 months of employment.

TxO may make a discretionary profit-sharing contribution each year.  The plan is currently structured using a “new-comparability” plan design to optimize contributions for physicians on a cost-effective basis in terms of contributions required to be made to clinical staff to support the chosen level of contribution to the physician group.  For Plan Year 2024, $46,000 was contributed for each eligible physician.

Physicians who are 50 or over can make a catch-up deferral election.  The catch-up amount for 2024 is $7,500.

Physician 401(k) contributions are always 100% vested.  Vesting of TxO contributions occurs over a 5 year period.

The plan provides that each physician may “exercise control” over their investments.  Investment funds are available through the Trustee and Investment Manager.

Cash Balance Plan

Texas Oncology recently introduced a new retirement plan that is in addition to the existing 401(k) profit sharing plan. Texas Oncology is able to make additional cash balance contributions to the program on behalf of physicians and these contributions are fully tax-deductible by Texas Oncology and will reduce a physician’s taxable income.  A physician is eligible to participate after one year of employment.

Amounts can vary between by age, or no inclusion in the plan at all.

Vesting of TxO contributions occurs after three years.

Disability Insurance

TxO maintains a core group disability plan which provides for group disability income equal to 60% of monthly income, up to $25,000/month for physicians earning less than $500,000/year and an additional individual policy which provides $5,000/month for physicians earning up to $600,000/year.

Coverage begins 90 days after the first day of employment.  A 180-day waiting period exists from the date of a disabling event before payments begin.

Physicians whose income exceeds $600,000 annually may also apply for a voluntary individual disability policy.  If eligible, the individual policy provides an additional benefit of up to $5,000/month.

Tail Policy

A tail policy is needed if leaving TxO.

If a physician discontinues practice with TxO due to death or disability, TxO will pay for tail coverage.

If a physician retires from the clinical practice of medicine and has been with TxO at least 4 years, TxO will pay for tail coverage.

If a retiring physician has been with TxO less than 4 years, TxO will split the cost of the tail policy with the physician.

If a physician leaves TxO to practice elsewhere, TxO will pay 50% of the cost of tail coverage.

If a physician is terminated for cause, the physician pays 100% of the coverage cost.