If you are lucky enough to have a job and have health insurance
through your employer soon you are probably getting ready to participate in
Open Enrollment, which start every October 1.
Employers allow employees to make changes to their health insurance
coverage during this time. During this
time you can also see any changes that have been made to your health insurance
plan since the last enrollment period.
If you are one of the lucky employees who have a job and have health
insurance soon you are probably getting ready to participate in Open
Enrollment. Open Enrollment is an open
benefits option for employees to make corrections or updates to their current
health insurance benefits. Health
insurance companies are required to accept any changes or updates without
questions or documentation of changes.
Health insurance benefits account for approximately 30% of an employee’s
salary.
For those currently employed, you can make changes during your employers
Open Enrollment which usually begins each year in October for: prescription drugs, dental, health, flexible
spending account, term life insurance, long-term care insurance and accidental
death insurance but varies by employer. Pick
the options you know you will use. Skip
the ones you don’t need.
To take full advantage of Open Enrollment, verify all of your
information is accurate. If you have
benefits that will no longer be paid in 2015, ask your health plan provider if
you can pay for the services using a Flexible Spending Account. Read all of the
information provided to you prior to making any changes to make sure you pick
the option that is best for you.You may qualify for a health savings account (HSA) if your health insurance policy has a deductible of at least $3,350 for individual coverage or $6,650 for families. Money is put in a pre-tax account, which grows tax-deferred and can be used to pay for co-payments, deductibles, and other medical expenses. You can roll over the unused money each year and take the balance with you if you leave your job. Some employers contribute to employee HSAs.
If you don’t qualify for a HSA you can sign up
for a flexible spending account (FSA) which allows you to save money to pay for
out-of-pocket medical expenses. In 2015, the maximum
amount employees can contribute to a FSA will be $2,550 per year. Your FSA contributions do not have to
pay state and federal income taxes or Social Security payroll tax. The catch is
you have to spend the remaining money by the end of the year or you lose the
money.
