It’s open enrollment time for many employer-sponsored health insurance plans. While it might be tempting to just keep the same health plan you’ve had for years, now is a good time evaluate your health plan needs and make some adjustments. Here are 5 things to consider this year during open enrollment:
1. Coverage
Does your health coverage still meet your needs? Are you paying for maternity coverage, even though you may be unable to have children? Does your policy include “alternative” medicine treatments that you will not use? Getting rid of superfluous coverage can help you save money.
But you may need a plan that provides more of some types of coverage. Are you concerned about your mental health? If so, it might be worth it to make sure that you have that type of coverage available in your plan. Consider your family’s health care needs, and make sure your coverage still provides the protection you need. For life insurance, double-check your beneficiaries. You will need to make changes to your beneficiaries with the insurance plan; just changing your will doesn’t cut it.
2. Employer health incentives
Some employers are adding health incentives for those who take particular measures to curb unhealthy habits. If you are willing to submit to a blood test or fill out a health questionnaire, you might be eligible for a lower premium. It’s not pleasant to do these things, or to sign up for health monitoring if you are trying to quit smoking or battle obesity. But if your employer offers health incentives, and cost is a major factor for you, it might be worth the intrusion.
3. Flexible savings account
Many employers have health plans that come with a flexible savings account. If you are seeing higher deductibles and/or co-pays, you might want to put more money in one of these accounts. Flexible savings accounts come with tax advantages, and allow you to save up for health costs that may not be covered by your plan (such as dental or vision), provide a way for you to plan for more out of pocket expenses, or help you save up to make higher co-pays. Check for limits to contributions to your flexible savings account, and be aware that you lose whatever you don’t use by the end of the year.
4. High deductible plans
If your family doesn’t make much use of health insurance, you might consider a high deductible plan offered by your employer. This can provide you with lower premiums – but you will have to pay more out of pocket. Many choose to combine a high deductible health plan with a Health Savings Account (HSA). Along with tax advantages, the HSA also rolls over year to year. So you can create a savings plan to cover your more mundane health care needs, and have your high deductible health insurance plan for more catastrophic issues. Just be aware of limits to coverage on some of these plans.
5. Additional insurance
Now is the time to consider whether or not you need additional insurance. Consider options offered by your employer that include long-term care plans or disability plans. You might get a group discount, and some plans can be taken with you when you move jobs. Carefully consider your needs to determine whether or not you could use a little more coverage, just in case.
Miranda is a freelance writer and professional blogger. She contributes to a number of financial sites, and blogs at the Personal Finance Corner.
Securities offered through LPL Financial, Member FINRA/SIPC.
{ 1 trackback }
{ 4 comments… read them below or add one }
Very timely post, as we’re currently considering most of the above in order to lower our insurance costs. The rate of inflation on some of these plans is worse than some credit card rates!
One thing I had never really heard of are employer health incentives! I’d love to find out more from you or other readers, if they have experience with it. Is it something administered by the insurance company or voluntarily by the employer?
@Wojciech, my company offers health incentives. In 2007 and 2008, they reimbursed us up to $300 for expenses we made for health-related purchases in the first quarter of the year. And they were pretty flexible in what they allowed: gym membership, sports equipment, running shoes, smoking cessation programs, weight-loss club memberships, etc. Even things like massage packages.
In 2010, they’re doing it a little differently. We recently had our annual all-hands conference and the company arranged for the employees to have free health screenings if they wanted them: weight, BMI, blood pressure, total cholesterol, HDL cholesterol, glucose, coronary risk ratio. I forget what else. This was not mandatory and there was no charge, and over 70% of our workforce (of 1200 employees) voluntarily participated. The next step was going online and taking a risk assessment. The assessment asked you questions about your bloodwork results, but also about your lifestyle habits: food, sleep, stressors, exercise, tobacco use, alcohol use, etc. (You received a score from 0-100. 0-24 is very bad; 25-49 is needs improvement; 50-74 is good; 74-100 is excellent.) Any employee who completed these two tasks will receive an additional $12.50 per pay period (x 24) in his/her paycheck for all of 2010.
The company also encourages us to take breaks during the workday to walk around the block…supports yoga classes on the premises…brings in a massage therapist once per month…supports employee-led bootcamps and exercise clubs…hosts lunch-and-learn sessions about nutrition, diabetes, etc. They’ve brought Olympic gymnast Shawn Johnson to speak to us, and I think there was another notable athlete who came another time.
Our insurance plans at our company are self-funded, and during our enrollments sessions this year, they told us that our costliest issues are cancer, arthritis, heart disease, pregnancy…and one other I forget. So obviously the company is looking at ways to prevent illness and the costs associated with those illness. And yeah…I suspect that in time — as early as a couple years from now, I imagine — the company will begin a system of rewards and penalities. If you’re a healthy weight and your health assessment is good, then you pay less; if you’re an unhealthy weight with several risk factors, then you pay MORE. In one sense, it’s a little scary in a Big Brother sort of way. But on the other hand, the company is bending over backwards to provide us you with the tools and motivation and opportunity we need to take control and improve our health.
Our open season just ended and I was shocked to see how much our coverage increased – 33%! This is on top of a 30% increase over last year. It amazes me how much health insurance coverage has increased over the last few years.
Patrick´s last blog ..Individual Health Insurance vs. Group Health Insurance
Our open enrollment window was decreased to two weeks. I consider that a very short time period for such an important decision as health care. There is not one size fit all, everyone needs are different. Please take the time to consult with your doctor and dentist first. If you have a choice between a HMO or PPO make sure your Doctor or Dentist will remain in a plan that meets your needs. Beware that comparison charts are not an accurate measurement of coverage. Companies will favor an HMO because of lower incurred cost to them over a PPO. Example: a HMO will pay $ 2300 for Orthodontic Procedures (Braces), while a PPO will $ 0.00 nothing – Important: HMO will pay say $45.00 for a Surgical Removal of Tooth while a PPO will pay up to 60% —–60% OF WHAT. What Dentist do you know will Surigcally remove a tooth for $45.00. (NONE). Consider Major Restorative Procedures thru a HMO Plan: Inlay $276-Core Buildup Including Pins-$110.0,- Crown porcelain/ceramic substrate – $385.00. What Dentist do you know would perform these procedures for the prices provided above, (NONE) During open enrollment there is a rushed to get you signed up with a Doctor or Dentist. They get paid for each patient signed up thru a HMO provider whether you see a Doctor or not. Meanwhile a PPO plan pays 60% of allowable amount, member pays 40%. I would like to know the amount the doctor is being paid. If the PPO plan is paying the Doctor 60%, then tell me up front what is his fee is for the procedure. Why is this a big secret. Consider emergency transportation, ALS or BLS , (Advance Life Support or Basic Life Support ) what does your provider pay. I found this out the hard way. I needed to have a MRI and needed to be transported to the clinic for the MRI which was 1.5 miles each direction to and from the hospital. I needed no medical attention during each trip, but I was billed for $750.00, my HMO covered up to $500.00. That was two years ago. I contacted my insurer and was told they pay up to $500.00 and the charge was (not) excessive. Talk with your Doctor and Dentist and try to make an informed decision regarding your current medical needs now and a least for the upcoming year. Invest not only in your financial future but also invest in your own physical health and well being. Good Luck.