|
If your
paycheck shrinks in 2012, the culprit may be rising
health insurance costs. But you can save money by making
the right choices this fall.
The cost
of health care coverage is expected to increase 5.9
percent in 2012, according to consultant Towers Watson.
That
makes it more important than ever to know how to save
during open enrollment, the time period each year when
employees sign up for benefits.
In 2012,
workers will be faced with higher premium costs, more
coverage restrictions, higher deductibles, and, for
some, more restricted coverage. Employers are nudging
workers toward high-deductible health plans, in which
employees pay some health costs upfront. That encourages
employees to be more aware of what they’re spending,
which saves the company money.
Workers
and employers often split the cost of insurance.
According to Towers Watson, about two-thirds of
employers plan to raise the employees’ part of the
premium for single coverage; for those with dependant
coverage, the figure is 73 percent.
“Employers
are going to continue to cost shift to employees,”
said Bill Grossman, senior vice president of Fort
Lauderdale, Fla.-based insurer Seitlin Benefits.
Here are
seven ways you can save on your health insurance for
2012:
MAKE A
MOVE: Without fail, choose a plan during open
enrollment. At some companies, employees who don’t
elect a plan during the enrollment period could be left
without health insurance, or kept in a plan that costs
them more.
“You
could have to wait a whole another year to get benefits
again,” said Carrie McLean, a consumer specialist with
eHealthInsurance, an online insurance company. Set a
reminder so that you don’t forget the closing date for
your enrollment period.
DO THE
MATH: Compare costs of each plan offered. Look at: the
premium, the basic cost of a policy; the annual
deductible, the amount that you’re required to pay
before insurance will pay, and co-pays, a set dollar
amount for a doctor’s visit or prescription.
Also
compare the co-insurance, which is the percentage you
pay after the deductible is satisfied, McLean said.
Employers
offer group coverage, but in some cases individual plans
available on eHealthInsurance.com or through a local
insurance broker, might be a better deal.
KNOW WHAT
HAS CHANGED: Check coverage this year versus last. What
your plan covers may have changed, or there may be
better coverage for your needs in another health plan
being offered. If you don’t have records of what you
paid for insurance, ask your employer to provide them.
More
employers are reducing costs by making maternity
coverage optional, so make sure you choose a plan that
offers that coverage if your family may expand, McLean
said. Also check prescription drug costs on each plan:
one may require you to pay more out of pocket, she said.
Compare
your spouse’s or domestic partner’s plan. The
employee’s share of the premium could be more or less
than your own plan, eHealthInsurance says. Check the
cost for family coverage and dependents in each plan.
If
someone has a pre-existing medical condition and needs a
brand-name drug — generally more expensive than a
generic, compare plans to see which is going to cover
more of that cost, McLean said.
ADJUST
YOUR COSTS: Consider a high-deductible plan with a
health savings account. If you’re fairly healthy, this
option can save in monthly payroll deductions. Unused
money each year rolls over for retirement savings.
Employers may contribute to the employee’s account to
help workers fund the higher deductible.
Nearly 60
percent of large employers expect to offer a
savings-account insurance plan by 2014, Towers Watson
says.
A health
savings account plan can save money in the long run,
experts say. But there’s a trade-off: More costs are
upfront, with employees’ paying for doctors’ visits
and other health expenses out of pocket, before the
deductible is met. Know your maximum out-of-pocket cost,
McLean said.
Joanna
Stiegler, 27, likes the savings that comes with
depositing pre-tax dollars in the health savings account
offered by her employer, Signature Consultants, a
technology staffing firm in Fort Lauderdale. But she
doesn’t have many health care costs. “It was the
most cost-effective for me because I don’t spend my
time at the doctor,” said Stiegler, an account
manager.
Under the
plan Stiegler chose, about $780 is deducted from annual
payroll. She has to meet a $3,000 deductible before
insurance pays. But the employee who has a “very
healthy year” could roll over as much as $3,050 in
pre-tax dollars into a health saving account, said
Signature benefits manager Nancy Tarchis.
SELECT
THE RIGHT LEVEL OF COVERAGE. You might find it less
expensive to insure healthy, young members of your
family through an individual plan. Compare costs to how
much an employer charges for a dependent.
LEAVE
ENOUGH TIME TO RECONSIDER: More than three-quarters of
2,200 workers surveyed regret their benefit decisions,
according to an Aflac survey by Harris Interactive.
Forty-seven percent of those surveyed said they make
mistakes every year, such as putting too little into
their flexible spending account, which allow pre-tax
wages to be set aside for qualified expenses. Or they
passed on coverage such as vision or dental benefits,
which they later wished they had.
Most
importantly, know the amount your employer pays — and
what you pay — toward your premium. Remember that if
you get laid off next year and enroll in COBRA coverage,
you’ll likely be required to pay the total premium now
being paid by yourself and your employer,
eHealthInsurance says.
|
