Employees get one time chance in a whole a year to make changes in their health insurance. They have the option to remain with old health insurance or go to a new insurer. No doubt, pick the same health plan and a coverage option is the easiest thing without any complication. But many times, workers don’t pay attention to many factors. To go with an old plan might be a wrong step. Here we have mention five ways that can be lead to the mistake and it should be avoided.
Over Insuring Yourself
Health insurance contains two costs; premiums and doctor fees. Many people choose so expensive plan so that it covers all costs but keep in mind one thing that if a person is healthy, then he does not need to buy such insurance coverage. By opting for the less expensive plan, the person is able to save much money.
Failing to Plan Ahead and Paying Too Much Out of Pocket
It may possible that current insurance policy is not covering some medical bills, for instance, pregnancy bill. If there is any certainty or prediction about the higher medical bill in future, switch to a more comprehensive insurance policy that provides some or all maternity expenses.
Assuming You Will Get the Same Coverage as Last Year
It will get you in a deep if you are thinking that you will get the same coverage that was in last year. Many employers change the policy in next year to reduce premiums. If you came to know that you are providing less coverage, there is nothing wrong to switch over to a more expensive plan.
Ignoring the Tax Savings of a Flexible Spending Account
While signing up with open enrollment, decide the amount that should be deposited in Flexible Spending Account (FSA). This money can be used for medical expenses throughout the year. This money is pre- tax basis so that one does not need to pay tax on FSA money. But one disadvantage of FSA, if a person does not use it, he loses the money.
Assuming You and Your Spouse Should Be on the Same Plan
If both husband and wife have insurance at work, compare both plans so that they can see which plan has better coverage. Choose the best plan from two for more benefits. By choosing a right policy will save more money and increase monthly budget.
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