Is health insurance something you appreciate having but also a source of confusion? With all sorts of terminology such as in network, deductible, coinsurance, premium, etc., the world of insurance can definitely be overwhelming. As a Lockheed Martin employee, it is important to know how much you will pay for health insurance under LM HealthWorks since there are several types of costs involved. Premiums are deducted from your paycheck but what about when a medical expense actually occurs? Let’s break it down to determine how much you would have to pay.


  • Example employee is eligible and enrolled in LM HealthWorks
  • In network
  • Family coverage elected
    • $3,000 total out-of-pocket maximum ($1,500 per person)
    • $1,500 total annual deductible ($500 per person)
  • Lockheed Martin employee needs to have a diagnostic X-ray
  • Example employee is first member of the family to incur medical costs for the enrolled year
Employee Aetna
Cost of X-ray $5,000
Deductible $500 N/A
= Portion Applied to Coinsurance Requirement $4,500
x Coinsurance Percentage 15% 85%
= Coinsurance Amount $675 $3,825
Total Owed (deductible + coinsurance amount) $1,175 $3,825

In this example, the employee would pay only about 24% of the total expense and insurance covers the rest. While $1,175 isn’t exactly spare change, it sure beats having to pay the full $5,000 for the X-ray! Another important point to note is that the individual out-of-pocket maximum for the Lockheed Martin health plan of $1,500 includes the deductible, therefore, the deductible plus the coinsurance amount will never be greater than this amount for the employee on an individual level. The family maximum out of pocket would be a grand total of $3,000, so in our example, a separate family member could utilize the remaining $1,500 out-of-pocket maximum to bring the annual maximum to $3,000. Keep in mind that out of network medical expenses have higher costs and that prescription drugs and preventive care expenses don’t count toward the out-of-pocket maximum. In the example above, the total owed is less than the out-of-pocket maximum, therefore the employee pays this full amount and the insurance foots the rest. To see even more details about the LM HealthWorks plan, visit their website. Here at Strittmatter Wealth, one of our Lockheed Martin Retirement Specialists would be more than happy to walk you through your employee benefits and tie them into your retirement plan.

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Be sure and check back next week for more incredibly valuable information. Cheers!


Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

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