For millions of people across the country, enrollment season is right around the corner. Each Fall, companies set aside a period of two to three weeks that allows employees to pick and choose which benefits they want for the upcoming year. It’s important to be prepared – after all, these decisions affect both your health and your wallet. With the following tips, you can improve your enrollment season.
Depending on where you get your insurance from (through an employer, insurance exchange, or other) open enrollment isn’t the same or at the same time for everyone. Here are some key dates to remember:
For most people, the plan year begins January 1, 2019, though your plan may have a different start date.
Before you compare options for new coverage during enrollment season, review your current plan and assess what you need and use most. You should also consider your overall costs.
A common mistake people make is signing up for a cheaper plan without realizing their network has changed or the new deductible is higher than the previous one. They realize this when they visit their doctor only to discover that the physician is now out-of-network, or they owe more out-of-pocket than expected.
To make sure this doesn’t happen to you, take a look at your current plan details. These details include your network, premiums, deductible, co-insurance and out-of-pocket maximum. Here’s a quick refresher:
Network: The group of physicians your insurance carrier is contracted with; you typically pay less to visit these providers.
Premium: The monthly payment for your health plan membership. If you qualify for a subsidy, some premium costs may be offset.
Deductible: The amount you pay in full before your insurance starts covering part of your medical bills. If your annual deductible is $2,500, you’ll have to cover all bills until you reach $2,500. After your reach your deductible, you’re still responsible for your co-insurance until you reach the out-of-pocket maximum.
Co-insurance: This is the amount that you pay after meeting your deductible but before meeting your out-of-pocket max. For example, you’ve met your deductible and receive an additional $1,000 bill. If your co-insurance is 20 percent, you owe $200.
Let’s face it: there is no one-size-fits-all approach to choosing a health plan. Every person or family has unique health and budget needs. Carefully review your options, and understand the benefits and costs of each plan so you can find the coverage that works best for you:
In addition to health insurance, your employer may also offer additional benefits like tax-advantaged benefit plans. With a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA), you can save money on out-of-pocket healthcare spending with pre-tax money.
Some benefits have a health insurance plan requirement; HSA enrollment requires a qualified high deductible health plan. If your employer offers an HRA – take it! HRAs are funded by the company and do not count towards an employee’s income.
While eligible expenses vary by employer for an HRA, with an HSA or FSA, you can pay for a wide-range of IRS approved healthcare expenses with your tax-free dollars. These include co-pays, deductibles, COBRA premiums (with an HSA), prescription medications, and more. Be sure to find out if your employer’s plan offers a debit card; it’s much easier to pay with a card which can reduce how many reimbursement claims you have to file. Learn more about eligible expenses.
Your employer may also offer other tax-advantaged benefit plans such as a Dependent Care Assistance Plan, which covers daycare costs for children age 13 years and under, or a Transit/Commuter plan which can help you pay for commuter and parking expenses.
During enrollment season, it’s important to have your healthcare receipts as a point of reference. With so much to keep in mind when you sign up for insurance and benefits, your receipts and Explanation of Benefits (EOBs) from the previous year can help you determine your expenses. Receipts should include visits to the doctor, pharmacy, hospital, and other health-related costs.
Not only will receipts help you assess your insurance plan needs, but can also help you figure out your other benefit needs, like an FSA or HSA.
Keep these tips handy and enrollment season will be a breeze.
Sign up to receive personal thoughts from the Captain as well as news on FSAs and HSAs!