The recently-passed health care legislation means changes will be made (or have been made) by many health care providers and insurers. If you are re-enrolling in a health insurance plan this fall or winter, you will need to take some time to learn about any potential changes. Statistics have shown that people spend an average of just 30 minutes choosing their insurance plan. This time around, 30 minutes may not be enough. Here are some things to keep in mind:
Price Increases
The cost of insurance plans will be affected this year by both rising health care costs and the new health care legislation. New provisions could result in an increased cost to employers of up to 9 percent. Much of that cost will be passed on to employees in the form of higher co-pays, deductibles and premiums. Look carefully at the current and projected costs of your existing plan. Don’t wait until you need to see a doctor or buy prescription medication. At that point, if your co-pay has increased significantly, it will be too late for you do anything about it.
Physician Changes
Negotiations between hospitals, doctors and insurance providers are “very aggressive” this year, according to Dean Hatfield of Sibson Consulting. As a result, there could be significant changes to the list of doctors available through any given network. Check to make sure your primary care physician and/or any specialists you need access to are still in your network. If they’re not, find out what the cost to you will be if you continue seeing them.
Prescription Drugs
The same prescription drugs that were covered by your plan last year may not be covered this year. Check not only for the drugs you and/or your family currently take, but alternatives as well – including generic brands.
Future Needs
Consider your family’s current and future needs. Not long-term, necessarily, but at least over the next two years. Are you planning to have kids? Will you have a child leaving for college? Do you anticipate having to care for an elderly parent? All of these circumstances will affect your insurance needs and may require you to make adjustments to your current plan.
“Freebies”
Some insurers advertise “new” freebies that aren’t really new – like preventative care. Some types of preventative maintenance have always been free or extremely cheap. But the word “free” draws people in, and insurers know it. So check the facts, and don’t be fooled!
Fraud
With new regulations come new opportunities for fraud, especially when the regulations are enacted during an economic downturn such as the one we’re currently experiencing. Across the country, people have filed complaints about fraudulent health care plans about which they’ve been approached or – unfortunately – into which they’ve already paid money. One firm based out of Tennessee allegedly scammed people out of a total of $14 million. If you’re offered a “too-good-to-be-true” insurance plan, be extremely cautious. Scammers are rushing to capitalize on both the poor economy and people’s confusion about health care reform and swindle people out of their hard-earned money.
Flexible Spending
If you’re willing to choose an insurance plan with a higher deductible, you could be eligible for a flexible spending plan. A flexible plan is a savings account that’s used exclusively to pay for health-related costs like chiropractic visits and medications. The money is deducted, pretax, from your income. The primary downfall of flexible spending accounts is that you only qualify if you have a high deductible.
There’s a lot to consider when enrolling in a health care plan. The best thing you can do it take your time and ask a lot of questions. If your decision is rushed or ill-informed, you could end up spending more money that necessary. Or, worse, you might choose a plan that doesn’t offer the right kind of coverage for you and your loved ones.
For more tips and tools to help you manage your money better, visit Quizzle.com, where you can find out how to get out of debt faster and find out about important changes to your credit report that can affect your credit score.
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- How Health Care Reform Affects Seniors, Medicare
- 529 Plans: Investing in Your Kid’s Future
- 4 Truths about Financial Advice
- The Secret to Building Wealth: Live Frugally
