https://www.mainstreet.com/article/how-much-does-your-health-care-actually-cost-each-year
The Downside of High Deductible Health Insurance.
February 24, 2016 by
http://www.consumerreports.org/health-insurance/downside-of-high-deductible-health-insurance/
Survey: 43% of Americans likely to pay more for health insurance in 2016.
February 17, 2016 by
According to the latest survey conducted by leading personal finance website GOBankingRates.com, 43 percent of Americans expect to pay more for health insurance in 2016, with 23 percent expecting to pay “a little more than the last year” and 20 percent expecting to pay “a lot more than the last year.”
To see what kind of cost increases Americans are anticipating, GOBankingRates conducted a Google Consumer Survey, asking over 5,000 respondents, “How much do you expect to pay for healthcare in the next year?”
The breakdown of responses according to the four answer options is as follows:
- Less than the last year — 20%
- Same as the last year — 37%
- A little more than the last year — 23%
- A lot more than the last year — 20%
“Healthcare costs are definitely trending up and are likely to continue to do so as states continue to conform to standards set by the Affordable Care Act,” said Elyssa Kirkham, the lead GOBankingRates reporter on the study. “With wages remaining relatively stagnant, higher prices on everything from health insurance premiums to prescription drugs will put pressure on Americans’ budgets.”
Additional findings:
- Almost half (48.7 percent) of individuals 65 and older expect to pay more for healthcare, whereas only 14 percent of respondents in the same age group expect to pay less in 2016.
- About 40 percent of women expect health costs to stay the same, compared with only 33.4 percent of men.
- Hawaii, Iowa and Oklahoma are the only three states with a majority of respondents expecting healthcare costs to decrease.
Tips For Lowering Your Medical Bills.
September 10, 2015 by
Having insurance may make it easier to get health care, but that doesn’t always translate to medical bills you can afford. High deductibles, copayments and coinsurance mean some people are avoiding medical care altogether to save money. But regular medical care is important, and you shouldn’t have to sacrifice your health to save money. By tackling your health care strategically, you may be able to avoid that tough decision.
More than 90 percent of Americans have health insurance, leaving 29 million still without coverage, according to the latest data from the federal government. But in a 2014 Associated Press survey of insured adults, one in four said they were not confident they could afford care if they or someone in their family had an unexpected medical need.
If you fear that a future medical expense may too steep, the following steps may help:
1. Find the right plan.
Saving on health care begins with selecting the right insurance plan. Consider how much the monthly premium will cost, but don’t choose your plan based on that factor alone. Instead, evaluate all of your options.
A plan that trades lower premiums for higher out-of-pocket cost — like a high deductible health plan (HDHP)— may make sense for someone with relatively few expected medical needs. Someone with a chronic condition, however, could save more with a plan that has higher premiums and lower deductibles, copays and coinsurance, as he or she will be going to the doctor more often.
Consider your medical needs for the coming year, and use them to estimate how much you’d spend with a few different plans.
2. Visit only in-network providers.
Insurance plans contract with groups of doctors and facilities to form a network that offers lower rates for members. When you use providers within that network, your care is covered at a higher rate. If you venture outside, you’ll have to pay more.
For example, one visit to an in-network family doctor for acute illness could result in a $35 copay, with your insurance picking up the remainder. A visit to an out-of-network doctor for that same illness could cost about $150, or the entire billable cost.
Always check your insurer’s website and search for doctors under your specific plan’s network.
3. Take advantage of FSA and HSA offerings.
Flexible spending accounts (FSAs) and Health Savings Accounts (HSAs) can help you budget for medical expenses while providing tax benefits. If your employer offers one, sign up. When deciding how much to contribute, estimate your medical expenses for the year and go from there. If you have a deductible, set aside at least that much.
A few important points:
● FSAs are— with few exceptions— “use it or lose it” accounts, so estimate your contribution carefully because if there are funds left at the end of the year, you may lose that money.
● HSAs are only available for people with qualifying high-deductible health plans. If you have such a plan, but your employer doesn’t offer an HSA, you can open one yourself through an outside financial institution.
● Unlike FSAs, an HSA is your account and the balance can be carried over from year to year, and even follow you as you change jobs.
4. Know what’s covered under free preventive care.
Under the Affordable Care Act (ACA), insured Americans are allowed certain free preventive services and screenings. These include immunizations and screenings for some types of cancer. Take advantage of this care because it can help you stay healthy and save you money.
5. Save on prescription drug costs.
Prescription drugs can be a major expense, particularly if you need recurring prescriptions.
Save on your medication costs by:
● Choosing generics over brand names whenever possible.
● Asking about a therapeutic alternative when your doctor recommends a brand name with no generic available.
● Asking your doctor for samples.
● Visiting the drug maker’s website for coupons or patient assistance programs.
● Getting your medicine in larger doses and splitting the pills.
● Refilling multiple months at a time.
A money-saving example: A one-month supply of the cholesterol drug Crestor could carry a $65 copay under some plans if a generic is not available. A one-month supply of Zocor— a different brand-name drug that treats the same condition— would cost $215, as insurance wouldn’t cover the brand name because there is a generic available. The cost of a one-month supply of simvastatin, the generic version of Zocor: $15 copay.
6. Negotiate high medical bills.
When you receive a medical bill, don’t automatically accept the balance as the final amount due. Contact the provider’s billing office to ask if they can reduce the cost. If the person on the phone won’t offer to lower the bill, ask to speak with a supervisor. Also, ask if a monthly payment plan is possible to make the
7. Carry lessons into the next year.
You may find the plan you chose for this year wasn’t the best for your situation. Make sure you learn from your experience and choose a more suitable plan during your next open enrollment period
Can I Change My Health Insurance Plan Outside of Open Enrollment?
August 4, 2015 by
Question:
When my employer offered open enrollment last year, I enrolled in a high-deductible health plan. I see now that this wasn’t the best plan for my situation and would like to switch to a policy with a lower deductible and higher premium. How can I change plans mid-year?
Answer:
Choosing health insurance is a difficult and often confusing task, so for many people, open enrollment is a time of hand-wringing and guesswork. Unfortunately, you may be stuck with your current plan until the next open enrollment period. But in some cases, you might qualify for what’s known as a “special enrollment period.”
You may qualify for a mid-year policy change.
Your eligibility for special enrollment depends on whether one of the following “qualifying events” have occurred in your life:
Loss of coverage due to:
- Divorce or separation
- Job loss or reduced hours
- Death of spouse who maintained your coverage on their policy
- Loss of dependent status
- Marriage
- Birth or adoption of a child
Some insurance carriers allow for additional qualifying events, such as gaining citizenship. Contact your human resources representative or insurance company to find out if there are additional qualifying events under your policy.
If you experience a qualifying event, you’ll generally have a minimum of 30 days to choose another plan. If you purchased a plan on the ACA or state marketplaces, you’ll have 60 days.
If you don’t qualify, there are other ways to save.
Since qualifying events are uncommon, it may be more helpful to cut down on health care costs to lessen the burden of your deductible. Here are a few ways to save:
Make full use of your HSA.
Because you have a high deductible health plan (HDHP), you qualify for a Health Savings Account (HSA). These are typically offered through your employer and allow you to set aside tax-free money to help cover medical costs — such as that deductible. If your employer doesn’t offer an HSA, you can sign up for one before the next open enrollment period through a bank or investment firm. Most HSA administrators allow you to contribute to the account throughout the year.
You mentioned that you’re willing to pay a higher monthly premium when you get a new plan. Consider setting aside the additional money you’re willing to put toward higher premiums into your HSA until you can switch plans.
Always review your medical bills for errors.
Experts estimate that 80% of medical bills contain errors. If you’re paying out-of-pocket to cover your deductible, these errors could be costing you. Look for errors such as duplicate charges, charges for services you didn’t receive, or charges that are too high for the services you did receive.
HSAs Gain Strength As Crucial Retirement Planning Tool.
May 27, 2013 by
Most retirees will spend an average $250,000 in out-of-pocket health costs during their retirement years, seriously cutting into their nest egg. The flexibility of HSAs and the tax advantages they offer may afford many workers the ability to contribute to their future health needs over their working careers and amass enough wealth to help chip away at their out-of-pocket expenditures. This may be particularly important when workers begin paying Medicare premiums, which are likely to rise when retirees are required to take minimum distributions from tax-advantaged retirement accounts, according to Investment News. Required minimum distributions from tax-qualified retirement plans, pensions and Social Security can trigger an increase in income that results in permanent Medicare premium hikes. As HSAs are tax-free income sources when distributions are used to cover qualified medical expenses, the use of them may help workers cover their costs and premium payments according to a recent report at www.algeus.com.