It’s that time of year again…
– by Andrea Bulen
It is important to review items related to your finances on a regular basis. Fall is a good time of year to review your health insurance coverage and other employee benefits. Like it or not, many of us are forced into this via the Open Enrollment Period for our employee benefits, individual health insurance purchased through the Marketplace, or our Medicare Advantage or Prescription Drug coverage.
Here are a few points to consider as you review your coverage:
IF YOU ARE WORKING AND RECEIVE BENEFITS THROUGH YOUR EMPLOYER:
- Evaluate your health insurance choices: Many companies now offer both a traditional health insurance plan with a low deductible, and a high deductible plan (HDHP). Carefully evaluate which one is best for you. If you enroll in a HDHP you will be eligible for a Health Savings Account (HSA). The maximum contribution limit for a HSA account in 2016 is $3350 for individuals and $6750 for family coverage. Account owners over 55 can contribute an additional $1000 (if you are married and both of you are age 55, each of you can contribute an additional $1000). In contrast to a Flexible Spending Account (FSA), a HSA account belongs to you and any balance can be used for health care expenses this year and in future years. I would encourage individuals to build balances in HSA accounts as they may become a primary resource for paying for health expenses in retirement, especially as expenses related to Medicare continue to increase.
- Are you taking advantage of company paid life and disability insurance: Many companies offer and pay for some life and disability insurance for their employees. Take note to the details of this coverage. If additional insurance is offered, evaluate if you are in need of the coverage and if the price is competitive to what you could pay for individual insurance. Note: Depending on the type of coverage, you may NOT need to go through underwriting to obtain this additional insurance. This is very valuable for people who may not be insurable.
- Company Credits: Many companies are now offering credits to employees who take certain steps to monitor and improve their health. Make sure you understand these and are taking advantage of them.
- Retirement Plans: Make sure you are maximizing the amount you are contributing to your employer sponsored plan, i.e. $18,000 for those under 50 and $24,000 for those age 50 and older. If cash flow doesn’t allow you to maximize your contributions, at a minimum make sure you are contributing enough to take advantage of your employer’s full match. If you don’t do this, you are literally turning down free money.
- Beneficiary Designations: Review the beneficiary designations on file for your retirement accounts and life insurance policies to make sure they are in line with your estate plan.
Please let us know the details of your employee benefits. They are an important piece to your financial puzzle.
IF YOU HAVE INDIVIDUAL HEALTH INSURANCE:
Open enrollment for people who have individual insurance through the Health Insurance Market Place is between November 1st and December 15th with coverage starting January 1st 2016. It is important to review your coverage each year. Not only do plans and prices change, but if you receive tax subsidies, you should update your expected income to determine if any of those subsidies will change for 2016.
Visit https://www.healthcare.gov/ for more information.
If you have health care coverage through the market place and are receiving a subsidy, make sure to let us know the details so that we can incorporate that into your tax planning for 2016.
IF YOU HAVE A MEDICARE PART D (PRESCRIPTION DRUG):
Open enrollment for people who have a Medicare Part D Plan is between October 15th and December 7th with coverage starting January 1st 2016.
- Review any information you have received from your Part D provider. Coverage CAN change from year to year.
- Evaluate your health changes and any new prescriptions that you may be taking.
- Use Medicare’s “Plan Finder” at www.medicare.gov/find-a-plan to evaluate if there is a plan that will give you better coverage for a lower premium than the current plan you have. Have your prescriptions ready as the tool will prompt you to enter each prescription and then find the plan that has the best coverage given your current circumstances.
Let us know details of your new coverage and your monthly premium.
IF YOU HAVE A MEDICARE ADVANTAGE PLAN:
Open enrollment for people who have a Medicare Advantage Plan is between October 15th and December 7th, with coverage starting January 1st 2016.
- Review any information you have received from your provider. Premiums, deductibles, and even networks may have changed.
- Evaluate your health changes to determine if this coverage is still the best for your needs.
- Use Medicare’s “Plan Finder” www.medicare.gov/find-a-plan to evaluate if there is a plan that will give you better coverage for a lower premium than your current plan.
- If you decided that you’d rather switch from Medicare Advantage to Original Medicare (read details of the differences here: http://www.viewfromthelake.com/traditional-medicare-vs-medicare-advantage/?share=email&nb=1. You can make the change at this time. NOTE: If you switch from a Medicare Advantage plan to Original Medicare you will also need to shop for Medicare Supplemental Insurance and a Prescription Drug plan. As always, never cancel insurance before you have secured new coverage.
Let us know details of your new coverage and your monthly premium.
Reviewing open enrollment coverages and benefits is often a dreaded task, (akin to filing tax returns and going to the dentist). But remember, we are here to help you make it not-so-terrible, after all… and just think how great it will feel to have that checked off your to-do list.
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