Choosing the right healthcare coverage

Healthcare in the United States has become an increasingly burdensome expense for most households. Even though healthcare expenses remain high across the country and show signs of rising more in the coming years, there are things we can do to be diligent healthcare consumers and keep more of our money in our pockets rather than shelling it out on out-of-pocket expenses.

One of the best ways to save on healthcare is to make sure your insurance coverage matches up with your healthcare needs. Read on for information on how to make the most of your insurance coverage and choose the mix that’s right for you and your household.

Evaluate all your options during enrollment

A recent study showed that 61% out of 24,000 people at a major Fortune 500 company had chosen the wrong plan for their needs. Errors in coverage selection can be costly, either by paying too much for premiums out of your paycheck (before taxes, of course) or by having to pay high deductibles because your healthcare needs are giving you more face time with doctors than you anticipated.

Most companies have two or more options for health coverage tiers, and poring over all the details can be daunting, to say the least. Finding the balance between premiums and deductibles is a dance most of us do every year, and doing that deep dive into coverages can certainly pay off when you select the right coverage tier for your needs. A helpful question to ask yourself is “do I need insurance for a catastrophic event that could potentially happen, or do I have a health issue I’m going to need ongoing care for?”

Yes, it can be a guessing game, and no one has a healthcare crystal ball. We don’t always know when an emergency might arise, but sometimes shifting to a plan with a higher premium and lower deductible can pay off if you’re foreseeing a lot of healthcare needs in the coming year. If that’s the case, you’ll pay a little more per month for the insurance, but it’ll pay off when insurance pays more toward your medical care after you hit your lower deductible.

During other years, when you anticipate your healthcare needs to be minimal, taking the plan with the lower premium and higher deductible might pay off by being able to put more money back into your paycheck (or divert it to a cafeteria plan, which we’ll discuss in part two of this series).

Comparing spousal coverage options against each other can help households where both spouses have insurance coverages offered to them. In some cases, it can make sense to sign up for coverage for the whole family under one person’s plan menu, and other times it’s better to parse things out and put people on different coverages.

Of utmost importance is reviewing all the available options and realistically anticipating what your healthcare needs will be for the upcoming plan year. What might have been good for this year might not align with your needs for next year.

Supplement your coverage if necessary

How do you cover the gaps in coverage? Some employers offer supplemental policies. While you don’t want to nickel-and-dime your hard-earned money away on insurance, weighing the options is worth the time and effort. If you have access to accident, hospital, cancer, or long-term care insurance coverages, review those options in detail before opting in or out.

If your employer offers dental and vision insurance, those are often no-brainers. They’re low-cost and typically cover routine dental cleanings and optometrist visits. They also pay something toward dental procedures and prescription eyewear as well.

Know where to go

If your employer doesn’t offer coverage and you’re too young for Medicare but make too much money to qualify for Medicaid, you still have options. Go to Healthcare.gov, fill out the application, and evaluate those options. Being covered will save you money when healthcare needs arise.

But wait, there’s more!

Picking the right health insurance isn’t the only way to save on healthcare costs, so we’ve got more information in two more blog posts about this topic. Make sure you check out Part 2: Saving in a cafeteria plan and Part 3: Even more ways to save on healthcare.