Slowing Health Insurance Increases

Healthcare costs continue to rise, as does the cost of buying health insurance. Even as prices keep increasing, there are a few ways to reduce your out-of-pocket costs.

Through Work

Employer-provided health insurance is consistently among the top benefits employees want, and for good reason. Group health insurance plans offered in the workplace are usually significantly less expensive than buying the same type of policy outside the workplace. Because some companies offer a choice of health plans, you may want to take the time to examine each offering to make the best choice for you and your family.

Should your employer offer a choice between a traditional and high-deductible health plan (HDHP), you’ll find a number of differences. A traditional health plan usually has higher premiums but a lower deductible and coinsurance. The HDHP typically has lower premiums but higher deductibles and coinsurance. Deductibles for single and family HDHP plans start at $1,350 and $2,700, respectively. Total out-of-pocket costs cannot exceed $6,750 for single coverage and $13,500 for a family plan.

A Strong Enticement

While out-of-pocket costs can be burdensome, many employers help lessen the sting by offering a companion Health Savings Account (HSA). This account is triple tax-free, featuring tax-deferred contributions, tax-deferred potential growth and tax-free withdrawals for qualified healthcare expenses. An added feature is that owners may take withdrawals penalty-free for any reason starting at age 65 and pay only ordinary income tax on the amount not used for qualified healthcare.

In 2019, you can contribute up to $3,500 to an HSA if you have a self-only plan, or $7,000 if you own a family plan. If you’re 55 or older, you can make an extra $1,000 catch-up contribution.

New Cost-Cutters

Some employers now offer health insurance discounts for those employees who commit to wellness programs. Others include a telemedicine option, which can be a cost-saver for you and your company for everyday illnesses like a cold or the flu.

While it’s true that health insurance can be pricey, not having coverage can set you back financially if you become injured or ill. Work with an insurance professional to find the right level of coverage for you and your family.