Open enrollment unlocks options. Each year, you get the option to review and select the best health insurance plan. Don’t be afraid to be selfish and get the most for you and your family. Take advantage of open enrollment to get the most from your healthcare coverage. Here are some tips to maximize your health insurance coverage, while limiting your costs.
Review Your Healthcare Costs from Last Year
Review your health costs from this year and years past to understand your yearly financial obligations. One word: spreadsheet. It’s time to get into the weeds, as they say, the devil is in the details. The better you understand your costs, the better you can understand your healthcare needs. With one goal in mind, lowering costs and maintaining or increasing healthcare coverage.
Predict Your Healthcare Costs for Next Year
With your yearly analysis review complete, it’s time to predict your cost for next year. While it might be easier to pick a winning horse at the track, you still need to do your best. Take note of any expected lifestyle changes or health costs that you deferred from last year. This will serve as your baseline. With a little luck, you won’t get stuck with any new costs piled on top. You are creating an intelligent estimate, do your best.
Take What You Can: Employer Healthcare Contributions
Often employers will pay a percentage (or all) of your healthcare costs. This can vary from plan to plan if the total amount per employee is set by the employer. This means the value equation further changes. This allows you to save more money on a lower cost plan or choose a more expensive plan with higher coverage that might have been financially inaccessible.
On top of that, your employer might contribute to health savings options, like an HSA. Employees need to understand the tax and health savings value of an employer-funded HSA. This includes savings for this year and for years to come.
Health insurance creates mandated complexity. Complexity can mean frustration, it can also mean hidden savings opportunities. Take the proper amount of time to review, predict, and unveil your health insurance opportunities. The expected result is more savings and more healthcare coverage.
If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.