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So many factors go into the overall cost of health insurance\u2014that\u2019s part of what makes it so tricky to choose a plan. Your total out-of-pocket costs will be the sum of all of these expenses:<\/p>\n
Premium: <\/strong>This is the monthly amount you\u2019ll pay for your health insurance.<\/p>\n<\/li>\n Copay: <\/strong>This is the amount you\u2019ll pay to see your doctor. Your co-pay to see a primary care doctor may be different than the copay to see a specialist.<\/p>\n<\/li>\n Deductible: <\/strong>This is the amount you must spend on healthcare before<\/em> your insurance kicks in to cover its share of expenses. Premiums don\u2019t count toward your deductible and copays continue even after you\u2019ve reached your deductible.\u00a0<\/p>\n<\/li>\n Co-Insurance: <\/strong>This is what you\u2019ll pay for services once you\u2019ve reached your deductible. It\u2019s typically a percentage\u2014for example, 20% coinsurance would mean you pay 20% of the cost and your health insurance pays the remaining 80%.<\/p>\n<\/li>\n Out-of-Pocket Maximum:<\/strong> This is the most you are expected to pay out-of-pocket for your covered medical services annually. Keep in mind that if a service is not covered by your insurance, you\u2019ll bear the full cost and it will not count toward your out-of-pocket maximum.<\/p>\n<\/li>\n<\/ul>\n Nothing is more frustrating than finding out that your doctor isn\u2019t covered by your insurance plan, so ensuring your current doctors are in-network is key to keeping costs down if you don\u2019t want to switch providers. To ensure that your providers accept the insurance you\u2019re considering, call them directly to ask. Some types of insurance plans such as Preferred Provider Organizations (PPOs) still pay something towards out-of-network providers, but is it more expensive than in-network care. Also keep in might that some types of plans (Health Maintenance Organization [HMO] and Point of Service [POS]) require you to get a referral from your primary care doctor before seeing a specialist.<\/p>\n Health insurance plans with high deductibles allow you to contribute to a health savings account (HSA). This is money you can set aside tax-free for medical expenses intended to help cover higher out-of-pocket costs that you might have with a high-deductible plan. A flexible spending account (FSA) isn\u2019t tied to your health insurance\u2014your employer decides whether or not to offer it, but it can still be a tax-free source of savings to cover healthcare expenses. Just keep in mind that you shouldn\u2019t contribute more to your HSA than you need in a year as the accounts are \u201cuse it or lose it.\u201d\u00a0<\/p>\n How much did you spend on healthcare last year? <\/strong>Start with what you know by looking back through your medical expenses from the last year. In retrospect, would you have saved money by going with a different plan? If you expect to have at least the same amount of expenses next year, that could be a reason to change plans.<\/p>\n<\/li>\n Do you expect your medical needs to change next year?<\/strong> If you anticipate any major changes to your healthcare needs, take that into consideration. For example, if you know you\u2019ll be having surgery or giving birth, you could benefit from a plan with a lower deductible.<\/p>\n<\/li>\n Do you have an emergency fund or designated health savings?<\/strong> Insurance is all about mitigating your risk. If your savings wouldn\u2019t cover your deductible or out-of-pocket maximum, consider switching to a plan with a lower deductible or out-of-pocket max to reduce the likelihood you couldn\u2019t cover unexpected medical costs, even if it means paying slightly higher premiums.<\/p>\n<\/li>\n<\/ul>\n Ready to take your finances to the next level?\u00a0<\/em><\/strong><\/p>\n To get started, <\/em>schedule a free 20-minute consultation<\/em><\/span><\/a> call to speak to a member of our team. We will ask you a few basic questions to get to know you more, walk you through <\/em>our financial training program steps<\/em><\/span><\/a>, and answer any questions you may have. No pressure to join! Need advice quickly? Talk to one of our <\/em>Trainers on Demand<\/em><\/span><\/a>.<\/p>\n<\/div>\nProvider Choice<\/h3>\n
Medical Savings Accounts (HSA or FSA)<\/h2>\n
3 Questions to Ask Yourself Before Changing Health Plans<\/h2>\n
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