Open enrollment season is almost here! In this episode of “Real Personal Finance,” we discuss navigating employer-provided health insurance options.
First, we talk about the four most important factors of choosing a plan:
Premium
Deductible
Max out-of-pocket
HSA contributions (minus employer contributions, if there are any)
If you do the research and the math, you may find that one is a clear choice. For instance, if you know you’re going to have a baby in the coming year or some other high-cost medical procedures, you may prefer to go with a PPO plan that has a higher premium but will cover more expenses overall, as opposed to a high-deductible plan with a lower premium.
We also look at the minimum and maximum costs for the plans you are considering. How much would each plan cost if you had zero health expenses in a year? On the other end of the spectrum, how much would you pay if you hit your deductible and maxed out your out-of-pocket costs? Looking at the minimum and maximum can help clarify, and ultimately guide, your decision.
Meg shares a personal story of being diagnosed with breast cancer and choosing to go with a better insurance plan with a higher premium and lower deductible. With all the stress of doctor visits and radiation appointments, she wanted the expenses to be predictable when she knew life would not be.
Lastly, we cover the difference between a Flex Spending Account (FSA) and an Health Savings Account (HSA). While there are several differences, it ultimately comes down to when you’ll use the money and what you want to use it for. We also touch on “dependent care FSA,” which can be used to pay for specific types of childcare or eldercare.
Navigating open enrollment season can be overwhelming – we get it! But when you better understand your health insurance choices, we hope you’ll feel more confident making the right decision for you and your family.
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Meg Bartelt on LinkedIn
Stone Steps Financial
Money can be confusing—but it doesn’t have to be. When you’re able to understand the complexities, you can make better decisions to improve your daily life. Are you ready to align your money with your ideal life? Connect with us at Stone Steps Financial.
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