Maximizing Your Aurora Health Care Physician Benefits
Navigating your Aurora Health Care benefits package doesn't have to be overwhelming.
Aurora Health Care is one of Wisconsin's largest health systems, serving patients across 18 hospitals and more than 150 clinics statewide. Many physicians join Aurora right out of residency, and benefits enrollment often gets rushed in the process. Since benefits can account for over 30% of total physician compensation, that's a costly mistake. At Simplicity Financial, we work with Aurora physicians regularly, and we've seen firsthand how a few key decisions, made correctly at the start, can have a meaningful impact on long-term finances.
Start With the 401(k)
Aurora matches your contributions dollar-for-dollar up to 3% of your salary, deposited each pay period. On top of that, you may be eligible for a separate 3% annual company contribution that goes into your account regardless of whether you're contributing yourself, provided you work at least 1,000 hours during the plan year and are employed on December 31. If you were hired after January 1, 2021, there's a one-year waiting period before that annual contribution kicks in.
That's a potential 6% employer contribution, and new physicians are automatically enrolled at just 2%. We recommend revisiting that default immediately. As an attending physician, you should target the IRS maximum of $24,500 for 2026, not the enrollment default.
Both the employer match and the annual company contribution vest at 0% until you've completed three years of service, at which point they vest fully at 100%. If you're considering a job change in year one or two, that's a significant amount of unvested money to consider before you make the move.
Consider the 457(b), an Account Most Physicians Underuse
If you’re at an Aurora affiliate, you may qualify for a 457(b) deferred compensation plan. Pre-tax contribution limits match those of the 401(k) at $24,500 in 2026, so maxing both accounts can effectively double your pre-tax retirement savings in a given year.
However, there are two important risks to consider:
Plan assets are held in a Rabbi Trust, which means they're technically subject to Aurora's creditors in the event of insolvency
When you leave Aurora, you have 120 days to elect your distribution as either a lump sum or payments over five years. A lump sum gets taxed as ordinary income in the year you receive it.
Whether you receive deferred compensation all at once or over time, it could still cause tax complications. Careful tax planning can help reduce your risk of getting a surprise bill.
Choose Your Medical Plan
For 2026, Aurora Health Care offers three medical plans, all administered by Meritain Health through the Advocate Health network:
Essentials: The lowest-cost option per paycheck, with predictable co-pays for most services and a moderate deductible that applies to labs, X-rays, inpatient, and outpatient care. Individual deductible is $750 in-network.
Choice (HDHP with HSA): A high-deductible plan with a $1,800 individual in-network deductible. Moderate per-paycheck cost. Pairs with a Health Savings Account, making it the only plan that gives you access to the HSA triple tax advantage.
Premier: The highest per-paycheck premium, but no deductible within the Tier 1 Advocate Health network and predictable co-pays across the board. Designed for physicians who use care frequently and want maximum cost predictability.
Your situation determines which plan makes the most sense. A healthy early-career physician who rarely uses care and wants to keep paycheck deductions might want to consider Essentials or Choice. The Choice plan may be worth the higher out-of-pocket exposure if you can fund the HSA and let it grow tax-free over time. Premier might be worth considering for physicians with ongoing care needs, a growing family, or anyone who wants the simplicity of a $0 deductible within the Advocate Health network. All three plans include free virtual primary care and cover the same services, so the decision comes down to how you use care and how you want to manage costs.
Disability Insurance and Why the Numbers Matter
Aurora offers two main types of disability insurance: short-term and long-term. Here’s an overview of each.
Short-Term Disability
This plan pays you 60% of your typical compensation for the first 90 days of disability. There’s no maximum payout. If you choose a 15% “buy-up” option, your coverage includes 75% of your typical compensation.
Long-Term Disability
This policy starts working after 90 days. It covers 50% of your usual compensation, but there’s a monthly cap of $16,000. For a physician earning $300,000, that cap becomes the binding constraint. At 50% of $300,000, the expected annual benefit would be $150,000, or $12,500 per month, which is just under the ceiling. As income grows beyond that, the gap between what you'd expect and what the plan pays widens quickly. A buy-up option raises the combined benefit to 75% of compensation up to $76,000 per month, which closes much of that gap for higher earners.
We usually suggest that physicians purchase the short-term disability buy-up. Depending on income, you may or may not need the long-term disability buy-up, but higher-earning physicians should take the LTD cap seriously before deciding to skip the buy-up.
Don’t Leave the CME Allowance on the Table
Aurora gives you an annual continuing medical education (CME) credit based on your certifications:
One Board Certification: Up to $3,500 per year
Two or More Board Certifications: Up to $5,500 per year
You also have the option to set aside up to $3,000 in pre-tax dollars for CME, but you must select it during enrollment.
Get Help Navigating Aurora Health Care Physician Benefits
None of these decisions happen in isolation. The right medical plan depends partly on your student loan strategy and tax situation. How aggressively you contribute to the 457(b) depends on your cash flow and how long you plan to stay at Aurora. The disability buy-up decision depends on where your income is headed. These are the kinds of interconnected choices we help Aurora physicians work through at Simplicity Financial.
Get started by scheduling a free consultation, or reach out to us by emailing jared.andreoli@simplicityfinancialllc.com or calling 414-207-6473.
Frequently Asked Questions About Aurora Health Care Benefits
What retirement benefits does Aurora Health Care offer physicians?
Aurora Health Care physicians have access to a 401(k) with a dollar-for-dollar employer match up to 3% of pay, plus a separate annual company contribution of 3%. Physicians at nonprofit Aurora affiliates may also have access to a 457(b) deferred compensation plan, which allows pre-tax contributions up to the same annual limit as the 401(k). These accounts can provide meaningful tax advantages, but vesting schedules, distribution rules, and potential tax consequences should be reviewed carefully.
Should I contribute to the 401(k) or the 457(b) first as an Aurora Health Care physician?
Start with enough 401(k) contributions to capture the full employer match at 3% of your salary. From there, we generally recommend maxing the 401(k) before turning to the 457(b), since the 401(k) is a qualified plan with stronger federal protections. If cash flow allows, maxing both is worth considering given the tax advantage of sheltering up to $49,000 combined in pre-tax dollars in 2026.
Which Aurora Health Care medical plan is better for physicians?
Aurora Health Care offers three plans for 2026: Essentials, Choice (HDHP with HSA), and Premier. Essentials may suit physicians who want low per-paycheck costs and predictable co-pays. Choice is worth considering if you can fund the HSA and cover out-of-pocket costs from your income. Premier offers a $0 Tier 1 deductible and typically works well for physicians who use care more frequently. The Simplicity Financialteam can help you compare the costs and coverage based on your family, healthcare needs, and overall financial plan.
Is Aurora Health Care's long-term disability insurance enough for physicians?
For many Aurora physicians, the group LTD plan alone leaves a gap. The plan covers 50% of compensation up to a $16,000 monthly cap. A physician earning $250,000 or more will find that cap limits their actual benefit well below 50% of income as earnings grow. A buy-up option raises total coverage to 75% of compensation up to $76,000 per month. We recommend most Aurora physicians at minimum elect the short-term disability buy-up, and carefully evaluate the long-term buy-up based on their income.
How does a financial advisor help Aurora Health Care physicians maximize their benefits?
Benefits decisions don't exist on their own. They connect to student loan strategy, tax planning, retirement sequencing, and cash flow. A fee-only financial advisor who works specifically with physicians can help you figure out how much to contribute to each account, whether the 457(b) makes sense given your career plans, and whether the employer disability coverage is sufficient or needs to be supplemented with an individual policy. At Simplicity Financial, that's the kind of planning we do for Aurora Health Care physicians.
About Jared
Jared Andreoli, CFP®, CSLP®, is the president of Simplicity Financial, a fee-only firm specializing in helping early-career physicians navigate complex student loans and build
individualized financial road maps. Since founding the firm in 2017, he has focused on providing a personal, high-touch partnership to help clients solve problems and pursue their long-term goals.