Understand Your Benefit Options! Get The Best Healthcare Plan
THE BIG THING I WANT YOU TO KNOW:
This open enrollment season, think about choosing the high-deductible plan. This type of plan allows you to put money into a Health Savings Account that rolls over each year and comes out tax-free when used for medical expenses. This could be transformative and help you as you continue on your larger plan to get you to your dreams for the future!
it’s our favorite season of the year -
happy open enrollment!
Open enrollment meetings have to be the most boring meetings of the year.
You walk into those meetings knowing the cost keeps increasing, knowing maybe your pay hasn’t increased very much, and it’s just not going to be a fun time.
A new study came out saying that the average cost of a family healthcare plan just passed $20,000 a year, and that’s JUST the cost of your premiums. That’s like buying a new economy car every year!
I’m not here to solve the healthcare issue, but I’m here to help you figure out how to prepare yourself and your family for upcoming healthcare changes and help you find the best scenario for your situation. It’s boring, but it matters!
Let’s get into the world of healthcare and discover:
the difference between a traditional healthcare plan and a high-deductible plan
which plan may be right for you
what an HSA is and why it can be transformative
If you work for a company that offers healthcare, usually you have two options.
traditional plan vs. high-deductible plan
1 - A traditional plan - lower deductible, higher monthly premiums
In this case, you have less deductible to pay for any major health issue that comes along, but you have a higher monthly payment.
2 - A high-deductible plan - higher deductible, lower monthly premiums
If you have to get coverage for a major health issue, you’d have a higher deductible to pay out of pocket.
A high deductible plan is generally more complex to deal with, but for the vast majority of people, I would argue that this is the way to go.
an hsa allows you to stockpile tax-free $$$ for medical expenses year after year
When you choose the high-deductible plan, you qualify for a Health Savings Account (HSA). HSA’s allow you to put money away and it comes out tax-free when you take it out to use for medical expenses.
The remarkable part is you can rollover the money in the account if you don’t use it all in a year, unlike a Flex Spending Account (FSA), which is usually tied to a traditional health plan. An FSA is “use it or lose it,” while an HSA can roll from year to year and is portable.
*So in theory, you could pay $500 for a traditional health plan, or you could pay $350 for a high-deductible plan and take the extra $150 and drop it in that HSA. You get a tax write-off and you have that money sitting there to pay the higher deductible, but if you don’t need it this year it’ll roll over and you can use it in the future.
AND if you pick an HSA, often your employer will contribute to it as a perk because it’s cheaper for them.
But maybe you just can’t afford the traditional plan
An hsa is still the best option
Most Americans live paycheck to paycheck. If you don’t have enough money to pay for the traditional plan but you can afford the HSA, that’s still a better option!
Ideally, you’d put as much into the HSA as you would’ve paid in the traditional plan so you have the deductible covered in case of emergency, but at least this is cheaper and more flexible.
With a traditional plan, you’re going to pay that extra money in premiums, and if you end up not needing it, guess what happens to that money? It just goes to the insurance company.
So if you can retain more of that money yourself in an HSA, that is a really good strategy.
If you’ve never done a high-deductible plan before, this is your year!
for those of you who sit in those meetings overwhelmed by the options,
seek answers! These benefits matter.
Should I take the optional cancer policy?
The accidental death and dismemberment policy?
You have to pick like eighteen different things, and maybe at some point, you stop reading it and just check the boxes. What you pick actually impacts you if something were to come up. It matters!
It’s important to be intentional about these choices. For most of us, this is one of the biggest expenses we pay every month. You can be strategic in the way you plan for healthcare so that it plays a role in the bigger plan to move you towards your dreams.
Picking the high-deductible plan might save you money this year, and if you don’t have any health issues this year then that money growing and accruing could truly be transformative three years from now when you have a major health issue because now you have all those tax-free dollars to put towards expenses.
What would it look like for you to feel confident in your choices? To make choices that will benefit you this year and also down the road?
Don’t let your confusion stop you from reaching out! Let us give you our unbiased input. We’d love to help you make the best choice that will benefit you now and in the future.
You can be strategic in the way you plan for healthcare so that it plays a role in the bigger plan to move you towards your dreams.
Do you jump on health kicks?