{"id":7634,"date":"2024-11-10T08:40:49","date_gmt":"2024-11-10T08:40:49","guid":{"rendered":"https:\/\/finderica.com\/4-questions-to-ask-before-changing-health-insurance\/"},"modified":"2024-11-10T08:40:49","modified_gmt":"2024-11-10T08:40:49","slug":"4-questions-to-ask-before-changing-health-insurance","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7634","title":{"rendered":"4 Questions to Ask Before Changing Health Insurance"},"content":{"rendered":"\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload clicker_number\" style=\"position: absolute; height: 1px; width: 100%\" alt=\"ScoreCard Research\" data-count=\"216.98.0.236,216.98.0.236, 172.68.174.248\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/p>\n<p><span style=\"font-weight: 400;\">If your employer announced it\u2019s now offering open enrollment on <\/span><span style=\"font-weight: 400;\">health insurance<\/span><span style=\"font-weight: 400;\">, you may wonder whether you should change your plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on your employers\u2019 insurance, you may have the following options during open enrollment:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sign up for, drop or change insurance plans, including high-deductible options that come with Health Savings Accounts (HSAs).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Add or remove dependants<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjust pre-tax contributions to a Flexible Spending Account (FSA).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The lower monthly premiums for a high-deductible plan may be an enticing option if you\u2019ve lost income or are concerned about turbulent economic conditions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, that short-term decision to <\/span><span style=\"font-weight: 400;\">save money<\/span><span style=\"font-weight: 400;\"> could be a costly one if you have a catastrophic health event.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More than half of those with the highest deductibles say they do not have readily available savings to cover those deductibles, according to a <\/span><a href=\"http:\/\/files.kff.org\/attachment\/Report-KFF-LA-Times-Survey-of-Adults-with-Employer-Sponsored-Health-Insurance\" target=\"_blank\" rel=\"noopener\"><b>Kaiser Family Foundation\/<\/b><b><i>LA Times<\/i><\/b><b> survey<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re considering swapping out your health care plan, we\u2019re here to help you make the best decision by weighing the benefits and risks of each.<\/span><\/p>\n<div class=\"adBorder\" id=\"thepe-854922176\">\n<h3>When Insurance Falls Short\u2026<\/h3>\n<p>Unfortunately, insurance doesn\u2019t cover <em>everything<\/em>. <a href=\"https:\/\/partners.thepennyhoarder.com\/when-money-is-tight-sdyn-prt\/?aff_id=384&amp;aff_sub3=when-money-is-tight-sdyn-prt\/&amp;aff_sub4=191454\" rel=\"false noopener\" target=\"_blank\">These resources<\/a> can help you manage those unexpected expenses.<\/p>\n<\/div>\n<h2>4 Questions to Ask Before Changing Your Health Insurance<\/h2>\n<p><span style=\"font-weight: 400;\">During open enrollment, you have more than a price tag to consider if you\u2019re thinking about exchanging your higher monthly premiums for a high-deductible health plan (HDHP).<\/span><\/p>\n<p>\u201cIt depends on their health, it depends on their consumption patterns and it depends on their threshold for risk and uncertainty,\u201d said R. Ruth Linden, Ph.D., founder and president of <a href=\"http:\/\/www.treeoflifehealthadvocates.com\" target=\"_blank\" rel=\"noopener\">Tree of Life Health Advocates<\/a> in San Francisco.<\/p>\n<p>So should you make the switch? Here are four questions to ask yourself to help you decide.<\/p>\n<h3>1. What Are My Options?<\/h3>\n<p><span style=\"font-weight: 400;\">If your employer offers multiple health insurance plans, you have some comparison shopping to do.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the more cost-effective options for employers is the HDHP. These plans offer lower monthly premiums but also require you to pay for more of your health care expenses before the insurance company starts kicking in.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because these plans cost less for the employer, many companies will try to incentivize employees to sign up by offering pre-tax contributions to an <\/span><b>HSA<\/b><span style=\"font-weight: 400;\">, which is basically a savings account that can only be used for health expenses.<\/span><\/p>\n<p>The <a href=\"https:\/\/www.healthcare.gov\/glossary\/high-deductible-health-plan\/\" target=\"_blank\" rel=\"noopener\">IRS<\/a> defines an HDHP for 2024 as a plan with a deductible of at least $1,600 for individuals and $3,200 for families. Total out-of-pocket expenses can\u2019t exceed $8,050 (individual)\/$16,100 (family).<\/p>\n<p>The only way you can qualify for an HSA is by having an HDHP, but you can continue to use that savings account long after you leave a high-deductible plan (more on that later).<\/p>\n<p>But if you\u2019re choosing between a high-deductible plan and a traditional health insurance plan, you should compare each component\u2019s value, advised Brian Haney, a Certified Family Business Specialist and vice president of <a href=\"https:\/\/www.thehaneycompany.com\/\" target=\"_blank\" rel=\"noopener\">The Haney Company<\/a>, which specializes in providing employee benefits.<\/p>\n<p>He suggested the following factors:<\/p>\n<div class=\"ordered-list-shortcode\" data-post-id=\"132857\">\n<ol>\n<li>\n<h4>Monthly premiums. <\/h4>\n<p>If you\u2019re on an employer-sponsored plan, your employer is paying a portion while you pick up the rest of the monthly cost.<\/p>\n<\/li>\n<li>\n<h4>Co-pays. <\/h4>\n<p>This is how much you\u2019ll pay for services. If you have regular doctor appointments, this could be a very important number for you \u2014 and the amount may differ depending on whether you see your primary care doctor or a specialist.<\/p>\n<\/li>\n<li>\n<h4>Deductible. <\/h4>\n<p>This is the amount at which your insurance company starts kicking in for medical expenses. <\/p>\n<\/li>\n<li>\n<h4>Coinsurance. <\/h4>\n<p>This is the amount, typically a percentage, that you\u2019ll split with your insurance company. The higher the coinsurance percentage your insurance company offers, the less you\u2019ll pay.<\/p>\n<\/li>\n<li>\n<h4>HSA\/FSA contributions.<\/h4>\n<p>If your employer offers contributions to either an HSA or FSA, factor that into the total amount.<\/p>\n<\/li>\n<\/ol>\n<\/div>\n<p>Although it could be tempting to look at the cost you know you\u2019ll pay every month \u2014 the premium \u2014 Haney noted that doing at least a little worst-case scenario planning could help provide a better picture of what each offers.<\/p>\n<p>As an example:<\/p>\n<p>Plan A has a $3,000 deductible and 100% coinsurance.<\/p>\n<p>Plan B has a $1,500 deductible and 50% coinsurance.<\/p>\n<p>Now, let\u2019s say you had to go to the hospital and your bill was $6,000.<\/p>\n<p>For Plan A, you\u2019d have to pay to meet your deductible, but then the coinsurance kicks in, so your total amount would be $3,000.<\/p>\n<p>For Plan B, you only have to pay $1,500 to meet your deductible, but you still have to pay 50% coinsurance for the remaining $4,500. At 50%, you\u2019d need to fork over another $2,250 for a total of $3,750.<\/p>\n<p>You should factor in all the categories when creating your comparison, Haney pointed out, but this example gives you a general idea of how one difference could affect your financial outcome.<\/p>\n<h3>2. How Healthy Am I?<\/h3>\n<figure id=\"attachment_132897\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" fetchpriority=\"high\" loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"lazyload size-full wp-image-132897\" src=\"https:\/\/www.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/health_insurance2-final.jpg\" alt=\"A man runs around a track. \" width=\"1200\" height=\"800\" srcset=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final.jpg 1200w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-360x240.jpg 360w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-768x512.jpg 768w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-1024x683.jpg 1024w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-100x67.jpg 100w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-222x148.jpg 222w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-314x209.jpg 314w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-363x242.jpg 363w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-467x311.jpg 467w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-649x433.jpg 649w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-750x500.jpg 750w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-793x529.jpg 793w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2020\/06\/08155102\/health_insurance2-final-300x200.jpg 300w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\"><figcaption class=\"wp-caption-text\"> Getty Images<\/figcaption><\/figure>\n<p>And more importantly, how healthy do you think you\u2019ll stay for the rest of the year?<\/p>\n<p>\u201cIf you are a person who only goes to the doctor once or twice a year for your well-person exam\u2026 then a HSA\/high-deductible health plan is likely a good decision to make at any age,\u201d Linden said.<\/p>\n<p>But even if you\u2019ve never needed to go to the doctor for anything but your annual physical, Linden advised that you should seriously consider how you would handle a sudden change in health \u2014 whether it\u2019s treating a worsening cough or an injured foot.<\/p>\n<p>At what point would you consider forgoing care if you knew you had to pay a lot more for a doctor\u2019s visit?<\/p>\n<p>\u201cOne might be disincentivized from going to the doctor,\u201d she said. \u201cThe difference between the $25 copay and a $90 copay might dissuade someone from making an appointment.\u201d<\/p>\n<p>Putting off care could lead to bigger medical issues down the road \u2014 or medical bills you can\u2019t afford to pay. If that\u2019s the case, sticking with a plan with lower copays might help you save money in the long run.<\/p>\n<div class=\"adBorder\" id=\"thepe-425043670\">\n<h3>We Dare You to Take Control of Your Debt<\/h3>\n<p>Up for a debt challenge?<\/p>\n<p>In 10 days, <a href=\"https:\/\/partners.thepennyhoarder.com\/organize-your-finances-prt\/?aff_id=384&amp;aff_sub3=organize-your-finances-prt\/&amp;aff_sub4=191929\" rel=\"false noopener\" target=\"_blank\">these 10 practical steps<\/a>\u00a0could help you get back on the right financial track.<\/p>\n<\/div>\n<h3>3. What Does the Rest of My Financial Picture Look Like?<\/h3>\n<p><span style=\"font-weight: 400;\">When faced with any financial decision \u2014 including choosing your health care plan \u2014 avoid tunnel vision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s very easy to zero in on one thing, to the detriment of the bigger picture,\u201d Haney said. \u201cBefore you start to try to save money on your premiums, you need to know: Can you cover the potential difference that you\u2019re taking on?\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can start by looking at your budget. Determine if you have enough money to cover the higher deductible without draining your savings. If not, are there other <\/span><b>areas where you can cut your budget<\/b><span style=\"font-weight: 400;\"> without sacrificing insurance coverage?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the flip side, if you\u2019re healthy and can easily cover the deductible with your current savings but have stayed with your old plan out of habit, you could be missing out on a financial opportunity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With an HSA, you can start to invest your money once you reach your plan\u2019s minimum threshold \u2014 typically around $1,000 to $2,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The money in an HSA grows tax-free, contributions up to the limit are tax-free and withdrawals for medical expenses are tax-free. If you\u2019re keeping score, that\u2019s a lot of tax-free money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And an <\/span><b>HSA is yours forever<\/b><span style=\"font-weight: 400;\">, so even if you end up leaving the high-deductible plan, you get to keep that account. So if you have enough savings to pay for medical expenses out of pocket, you could leave your HSA untouched and let it grow with the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you retire, you\u2019ll be able to use that HSA to pay for the inevitable increase in age-related medical costs without having to dip into your other retirement accounts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhat we\u2019re seeing is with retirees, one area where there is a woefully inadequate amount of funds set aside is in the area of medical expenses,\u201d Haney said.<\/span><\/p>\n<h3>4. How Secure Is My Job?<\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re on a traditional health insurance plan through your employer and are worried you might lose your job in the next few months, this might be the time to swap your traditional plan for a high-deductible version.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you can use the time you have with your current employer to build up your HSA, you can use those funds to help pay for medical expenses after you lose your job \u2014 including COBRA premiums.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This wouldn\u2019t be a solution if you\u2019d struggle to cover the deductible and you don\u2019t have a lot of time to build up your HSA, but you should at least consider this option to continue your <\/span><b>medical coverage if you become unemployed<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you\u2019re at a job you consider to be relatively secure and you\u2019re stressed out about future health issues, this might not be the time to take on the additional risk of a new plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf your health insurance is working for you, if you\u2019re able to access the care you need, if you can pay for it, your employer is contributing to your premiums, stay the course,\u201d Linden said. \u201cYou\u2019ll have an opportunity in a year to rethink your options.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf it ain\u2019t broke, don\u2019t fix it.\u201d<\/span><\/p>\n<div class=\"adBorder\" id=\"thepe-301561261\">\n<h3>Need a Hand With Bills?<\/h3>\n<p>Listen, we know it\u2019s tough out there. But there\u2019s no shame in asking for help.<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/ask-for-money-sdyn-prt\/?aff_id=384&amp;aff_sub3=ask-for-money-sdyn-prt\/&amp;aff_sub4=191831\" target=\"_blank\" rel=\"noopener\">These companies<\/a> make it easy to help yourself and your bank account.<\/p>\n<\/div>\n<p><i>Tiffany Wendeln Connors is a staff writer\/editor at The SS. Read <\/i><i>her bio and other work here<\/i><i>, then catch her on Twitter @TiffanyWendeln.<\/i><\/p>\n<p>        <!-- ACF Financial Disclaimer --><\/p>\n<p>        <!-- End ACF Financial Disclaimer --><\/p>\n<p>        <!-- \n\n<div class=\"single-social-share-bottom text-center\"> --><br \/>\n                    <!-- <\/div>\n\n --><\/p>\n<p>        <!-- Newsletter Signup Form --><\/p>\n<hr>\n<hr>\n<div class=\"newsletter-signup-wrapper-for-digioh\">\n<div class=\"col-xs-12 newsletter-wrap flex-row\">\n<div class=\"container flex-container\">\n<div class=\"col-xs-12 new-newsletter-form\">\n<p class=\"text-subheading\">Ready to stop worrying about money?<\/p>\n<p class=\"text-get-daily\">Get the SS Daily<\/p>\n<p class=\"email-privacy-policy-blurb-white\">\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<p>        <!-- End Newsletter Signup Form --><\/p><\/div>\n<p><script type=\"text\/javascript\" id=\"wp-fcapi-js-before\">\n\/* <![CDATA[ *\/\n!function(f,b,e,v,n,t,s)\n{if(f.fbq)return;n=f.fbq=function(){n.callMethod?\nn.callMethod.apply(n,arguments):n.queue.push(arguments)};\nif(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\nn.queue=[];t=b.createElement(e);t.async=!0;\nt.src=v;s=b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t,s)}(window, document,'script',\n'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '263664193816679');\n\/* ]]> *\/\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.thepennyhoarder.com\/insurance\/changing-health-insurance\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your employer announced it\u2019s now offering open enrollment on health insurance, you may wonder whether you should change your plan. Depending on your employers\u2019 insurance, you may have the following options during open enrollment: Sign up for, drop or change insurance plans, including high-deductible options that come with Health Savings Accounts (HSAs). Add or<\/p>\n","protected":false},"author":1,"featured_media":7635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[217],"tags":[1591,326,292,542],"class_list":{"0":"post-7634","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-insurance","8":"tag-changing","9":"tag-health","10":"tag-insurance","11":"tag-questions"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7634"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7635"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}