Don’t Get Stuck with Bad Insurance. Pick the Right Plan During Open Enrollment

As health care becomes increasingly more expensive, the decisions you make during open enrollment have a greater impact on your health, your budget and your quality of life. Employees of large organizations are expected to pay 5% more on average for health insurance premiums in 2017, according to the National Business Group on Health (NBGH).

Premiums won’t be the only effect on your wallet. The average in-network deductible rose 50% for PPO plans in 2016, and primary-care co-payments were up 25%. That’s a huge increase year over year. The rising costs of prescription drugs won’t make it any easier for you to stay healthy in 2017. Many don’t worry about the increase cost of healthcare, believing that health insurance keeps them protected, but that’s not true. “The idea that you don’t have to worry about costs because you have health insurance is ridiculous,” according to Doug Hirsch, CEO of GoodRX, which tracks drug pricing.

Take your time and compare health insurance policies during open enrollment this year to cut your costs, notes Jody Dietel, chief compliance officer at benefits administrator WageWorks. Making the wrong choice could increase your health care costs by thousands of dollars a year.

Picking a Health Insurance Plan During Open Enrollment

Almost 70% of companies offer at least two types of health insurance policies, according to the Society for Human Resource Management.

Consider High Deductibles

Aim for a plan with a high deductible plan if you’re really healthy or really sick, says Sylvia Francis of SHRM. If you’re in good health this case for doing so is clear. You’ll save on your annual health care premium. These plans may also come with a health savings account. With the tax break you get for contributions, that could add up to more than the difference you would pay in health care deductibles. Many in-network preventive services including mammograms and colonoscopies are covered 100%.

A cheaper high-deductible plan can also be a smart idea for beneficiaries who take high-priced medications or require a lot of healthcare, according to Francis. These beneficiaries hit their deductible rather quickly, leaving just co-pays and co-insurance until hitting the annual out-of-pocket limit. These is typically $6,550 for an individual or $13,100 for family coverage. On the other hand, if your health needs are somewhere in the middle, you’re better of considering a traditional plan.

Check Your Network

Doctor and hospital networks have shrunk dramatically for Obamacare offerings. While your network may not have had as drastic of a cut, it’s important to know your network well and stay within it to avoid high health care costs. If you’re considering an HMO for 2017, your costs will only be covered if you get care from participating doctors and medical facilities. PPO plans are more flexible, but you’ll face higher costs and separate deductibles if you stray from your network. “Out-of-network coverage is better than nothing, but you shouldn’t just assume you’ll only pay a little more,” says Karen Pollitz, senior fellow with Kaiser Family Foundation.

Spousal Surcharges

It may make sense for you to split from your partner’s health plan next year if you’re both employed. “We’re definitely seeing an uptick in spousal surcharges, says Julia A. Stone, a health care consultant with Willis Towers Watson. One in every three companies charges an extra $100 a month on average to cover spouses who can get health insurance through their own employer. This means you’re paying extra to be on your partner’s plan. It may still be worth teaming up with your spouse if their employer provides better coverage, but study both offering well before making a decision.

Want to explore health coverage before open enrollment? Request a free healthcare quote from InsuranceBestPrices.com today. It’s free and easy. Don’t make the wrong decision regarding your health during open enrollment.