If you’re lucky enough to buy health insurance through your job, you may find yourself doing the most number crunching you’ve done since high school calculus class. That’s because many employers are increasingly unloading the cost of healthcare back onto the shoulders of employees. Human Resources Company Aon Hewitt estimates employees will spend more than $200 more in healthcare premiums in 2012 than this year. That’s in addition to spending more on things like co-pays, co-insurance and other out of pocket costs. If you’re like me, you may be tempted to just choose the insurance option you had last year—but not so fast. Look closely and you’ll notice new plans are out and some have names and fine print that may send your heart racing.
This is what’s happening to me. For the first time I’m poring over numbers I’ve never paid attention to before. I’m calling doctors and asking them, “So, what do you charge for an office visit?” I’m taking a magnifying glass and looking at my pharmacy receipts to see what my prescriptions really cost. You see, like so many of us fortunate enough to have healthcare, we’ve grown accustomed to the zero deductible, co-pay system of health insurance. You pay a premium each month and then when you need to go see the doctor you pay a set price. When he/she gives you a prescription you head to the pharmacy and you also pay a set price for your medicine. Simple. Easy. Almost a no-brainer. But those days are dwindling.
These days, there are deductibles you must pay before insurance will even cover one cent. In some cases, you have to shell out $2400 before insurance kicks in. When that happens, you REALLY pay attention to what every single doctor’s visit, prescription drug and procedure costs. The upside, of course, is that you pay smaller premiums for that coverage upfront.
High-deductible healthcare plans are more popular than ever. Combine those plans with a Health Savings Account (HSA) and suddenly, you’re in the driver’s seat. That can be a good thing, since it forces you to be really aware of how you use healthcare. A health savings account looks really appealing—you put money away into an account that you can draw from—penalty free—to pay for your healthcare now and in the future. It’s a portable account, too---you CAN take it with you when you leave your job. I think these accounts are the future. I’m not getting a pension when I retire, so I pay into a 401k. Likewise, I don’t expect to get cushy healthcare benefits when I grow older or, so I’m contemplating paying into a HSA. I consider it a hedge against whatever curveball the healthcare debate throws my way.
All of this can cause serious tension headaches, but I’m hopeful that these are just growing pains. I kind of like being responsible for what happens to me (control freaks, rejoice!). I admit that I miss those halcyon days when healthcare plans were seemingly simpler—but I think more math will ensure I'm better off—physically and fiscally.
Happy Open Enrollment!
Norma Holland, Anchor
