Do you fall into the category of people who view it as a repetitive process where everything remains the same, except for the increasing cost deducted from your paycheck? If your answer is yes, you are not alone. Many working Americans approach benefit elections in a comparable manner. However, this year demands a different approach. It is not the time to bury your head in the sand when it comes to your benefit choices. While inflation has affected gas and food prices, healthcare costs have remained stable. This is about to change as hospitals seek to recover the revenue lost during the COVID pandemic, resulting in a wave of price adjustments for healthcare services. This is especially true for those enrolled in high deductible health plans.
But fear not, our aim is not to dwell on the problem. Instead, we want to offer practical advice to help you take care of yourself and your family while keeping as much money in your pocket as possible. The key to achieving this is making the right choices from the available options. Remember, open enrollment periods are short, so preparation is crucial. So, what can you do now to get ready?
- Understand Your Expenses
- If you have access to your health insurance member portal, log in and find out the total cost for you and your family members.
- If you have been with the same health insurance carrier, review your previous years’ claims to identify any changes in expenses. Are they increasing, decreasing, or remaining the same?
- Determine how much of your expenses are ongoing (such as pharmacy costs) and how much are one-time expenses unlikely to recur (such as surgery). If you are not on the portal, consider contacting your provider to obtain this information.
- Evaluate Your Prescription Plan
- Assess all your prescriptions and discuss with your doctor the following:
- Availability of generic alternatives or upcoming generics in 2024 (over fifty drugs are set to have their patents expire in 2024).
- Potential therapy alternatives that may be more cost-effective.
- The type of medications you require, whether they are generic or brand name, as this significantly impacts the choice of the right plan. Prescription drugs are the fastest-growing area of healthcare expenditure.
- Assess all your prescriptions and discuss with your doctor the following:
- Explore Other Coverage Options
- Have you recently reviewed your spouse/partner’s plan? Compare the coverage and cost with your own.
- Consider mixing and matching coverage. It might be more affordable to obtain dental and vision coverage from one source and medical coverage from another.
- For married couples, it may be cheaper to have single plans through each of your respective employers.
- Evaluate whether it is more cost-effective to provide separate plans for older children who have access to other coverage. Sometimes, student plans for college students or single plans for adult children who are working can be more affordable than keeping them on your plan. This is especially true if your employer’s premium rate is tiered, where families with two adults and one or more children pay the highest rate.
The purpose of this exercise is to create a healthcare budget. By understanding your expenses, you can make informed decisions about your benefits. Do not wait until the last minute. Start now and be prepared!
Featured image courtesy of ECMC.
