Tech startup Fast Media Director Jason Alderman (right) talks to an employee on his first day at the office on March 24, 2021 in San Francisco, California.
Justin Sullivan | beautiful pictures
Inflation has stretched household budgets near their limit. As a result, most people have limited discretionary spending, even when it comes to health and well-being.
But like many Americans who want to downsize, US health officials are expecting another wave of the pandemic this winter and new research emphasizes the importance of having comprehensive medical benefits.
In spite of the Biden administration is looking for at the end of the public health emergency in the next few monthsmany people got sick but survived Covid suffer from long-term health problems, studies show. And now, there are like 23 million Americans there is what is considered long-term Covid, according to recent estimates by the US Department of Health and Human Services.
With the open enrollment season in full swing, here’s your chance to reassess your coverage, says Gary Claxton, senior vice president of the Kaiser Family Foundation, a nonprofit focused on national health issues.
Spending staff 18 minutesAccording to Rob Grubka, CEO of Health Solutions for Voya Financial, on average, they consider their benefit options during the open enrollment process. “They spend more time deciding what to watch on Netflix.”
But this year brings more uncertainty, he said. “Between rising inflation, prolonged Covid and Covid, we underestimate how different things could be going forward.”
At the same time, more than a quarter of employees have postponed health visits and checkups and consider cost the most important factor in determining their benefit options for next year, according to the benefits platform. Elevate.
Employees are making choices to keep themselves afloat, says Brian Cosgray, CEO and co-founder of Elevate. Unfortunately, some people are engaging in trade-offs — such as the aforementioned medically necessary care — that can cause problems later on, he added.
To balance your overall health and long-term disease risks and financial constraints, Claxton suggests re-evaluating employer-sponsored health insurance coverage during open enrollment, often extended enrollment periods. to the beginning of December.
Nearly 159 million Americans rely on employer-sponsored funding Health Insurance network coverage. Here are four key considerations as the open admissions season gets underway:
1. Health insurance packages
For starters, consider how much your health insurance will cost.
Annual family insurance premium for employer-sponsored health insurance — the amount of coverage costs each year, usually divided into 12 monthly payments — averaged $22,463 this year, up slightly from a year ago, according to Kaiser Family Foundation.
On average, workers contribute $6,106 to the cost of family insurance, and employers receive the rest.
However, many workers have a deductible — the amount you pay before the coverage kicks in — and that deductible is growing, too. In 2022, the average one-time deduction is $1,763, more than double what it was a decade ago.
But “don’t just look at your monthly health insurance costs,” advises Cosgray. He added: “Most employers offer a few health plan options, such as a high deductible plan with a health savings account or a more traditional PPO.
“If you want your health care costs to be low next year, a high deductible health plan combined with an HSA can be a good way to save money,” he said. “However, if you have chronic illnesses in your family and often hit the deductible, a traditional plan combined with [a flexible spending account] can save you more over the course of a year, even if the monthly cost of the plan is higher,” says Cosgray.
“If you’re going to be on a high-deductible plan, you have to be able to pay the deductible if someone gets sick,” Claxton added. “The plan might be cheaper but what if you can’t afford it?” Most of people can’t even afford $500, he noted. “If you go to the hospital, the chances of you paying at least $500 are pretty high.”
There are often employer-provided resources designed to help choose between benefit offerings, which may include webinars and dedicated benefits experts.
“Many health plans now have great tools to help you manage your choices based on what you anticipate your healthcare costs will cost,” says Thomas Belmont, health practice leader and welfare at Gallagher, advises.
“That should help guide you.”
2. Health Savings Account
One way to help pay for health care costs is to use tax-advantaged accounts for medical expenses – namely, health savings account or flexible spending account.
In either case, you use pre-tax money to cover out-of-pocket expenses, including doctor visits and prescription drugs.
To be able to use an HSA, you need to be enrolled in a high-deductible health plan, or HDHP. Contributions then grow on a tax-free basis, and any funds you don’t use can be rolled over year-to-year.
“There is an opportunity to save and save effectively,” says Grubka.
For 2023, workers and employers can contribute a total of up to $3,850 for individual coverage and up to $7,750 for family coverage, with an additional $1,000 under catch-up contribution format for those 55 and older.
Medical FSAs have a lower contribution limit — $3,050 for 2023, but you also don’t need to be on a high deductible plan to qualify. qualified — in fact, you don’t need health insurance at all to sign up for a. Although, you may have to use the money at the end of the year or you lost itwith some exceptions.
3. Contract of life insurance and disability insurance
To be sure, the pandemic has brought about greater awareness of the financial risks associated with a critical illness.
Employer-issued life insurance policies are usually the equivalent of one year’s salary, often less, but that can be a fraction of what you need to protect young children or dependents. other.
Consider the amount that’s right for you and your family, then consider whether you want to purchase additional coverage or additional coverage through your workplace group plan or shop for your own. Term personal life insurance policya move that many advisors recommend, although this may also require additional medical information, including a physical exam and blood tests.
The same goes for disability insurance, which can help replace part of your paycheck if you get sick and can’t work.
There are two basic types: Short-term disability usually replaces 60% to 70% of your base salary, and premiums are typically paid by your employer. Long-term disability, which usually occurs after three to six months, often replaces 40% to 60% of your income.
Other voluntary benefits offered through an employer that may provide additional protection, include hospital indemnity insurance, critical illness insurance, and accident insurance.
“As we move into the next year and financial pressures mount, make sure you’re protecting your income,” says Belmont.
4. Health care benefits
As a result of the pandemic, many companies have expanded health care offerings among health care insurance options to help employees cope with work stressors and problems. personal topic.
For example, more than a quarter of major employers added mental health providers this year — either in physical offices or virtually through teletherapy — to their plan network to expand access, according to the Kaiser Family Foundation.
“We’re having a real crisis from an emotional perspective,” Belmont said.
Employees should make the most of the services employers offer, which are often free, including financial coaching, emergency savings assistance, stress management class and Preventive child carehe advised.
With rising prices leaving many Americans feeling financially stressed, “one of the least-used benefits is financial advice,” says Belmont.
