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Changing Health Plans Could Save You Money
If you're fortunate enough to work for an employer who provides a benefits package, you've got some decisions to make soon. Do you change your medical plan? Should you sign up for prepaid legal services? Is it time yet to get long-term-care insurance? Should you get disability insurance?
My husband and I were speaking at my church recently, giving couples tips on how to manage their money, when one man stood up and spoke for many of us. He was confused by the many choices. ''How do you know what to get?'' he asked. ``It feels like after all that I pay for, I have two dollars left in my paycheck.''
I understood his frustration. But those of us who have these choices to make during open enrollment should feel blessed. A decrease in employer-based health insurance has contributed to a rise in the number of uninsured. The percentage of people covered by on-the-job insurance decreased to 59.7 percent in 2006 from 60.2 percent in 2005, according to the U.S. Census Bureau.
So for those of us who will receive a benefits packet, what can we expect this year?
Well, in an effort to cut costs, your employer may be offering financial incentives or penalties for certain healthful or unhealthful behaviors, according to Watson Wyatt, a consulting firm that works with large employers on their open-enrollment programs.
DON'T ASSUME
Pay special attention when you get your benefits packet because your employer may have expanded or changed what was offered during open enrollment last year, said Tom Billet, a senior consultant with Watson Wyatt.
''A lot of people make the mistake of assuming whatever choice they made last year is a good choice for this coming year,'' Billet said.
Here are some of the major trends Wyatt has identified for this year:
• More companies are offering financial incentives to employees who don't smoke or maintain a healthy weight or who agree to participate in wellness and fitness programs. A survey by Watson Wyatt and the National Business Group on Health (NBGH) found that 46 percent of employers offer economic incentives and another 26 percent plan to do so in 2008. For example, beginning in 2009, Clarian Health Partners of Indianapolis plans to give employees a discount on their health-insurance premiums for, among other things, not being overweight.
Some companies will penalize workers for unhealthful choices, such as smoking, by charging higher health-insurance premiums. The extra cost for lighting up ranges from $50 to $100 a month, Billet said.
• Look for more coverage of preventive medical care. Wyatt found fully paid benefits often include reimbursement for vaccinations, exams and screenings for early diagnosis of breast, colon and cervical cancer. Many employers also provide coverage or partial reimbursement for blood pressure, cholesterol checkups and flu shots.
• More employers will be offering workers health coaches, according to another survey by Watson Wyatt and NBGH. A health coach might give an employee advice on how to better manage a chronic illness, such as asthma or diabetes. Wyatt and NBGH found that 44 percent of large employers offer health coaches and another 13 percent plan to offer them next year.
BUNDLE SERVICES
• You may be able to get more than the traditional coverage through your employer. Some plans offer workers a chance to get homeowners and automobile insurance and discounts on other services such as massage therapy or chiropractic care.
• Finally, as healthcare premiums rise, employers are paying closer attention to the people their employees report as dependents. An increasing number of employers are conducting eligibility audits and asking workers to provide proof that those dependents they enroll in the health plan are considered legal dependents.
Employers who have conducted audits typically find between 5 and 7 percent of enrolled dependents should not be covered, Billet said.
FILL OUT THE FORM
When you get your benefits package this year, look through the paperwork to see whether you are required to send a letter verifying the status of your dependents. Ignore the letter or forget to fill it out and you could lose your benefits. I know open enrollment can be a pain. There is so much to go through and so many decisions to make, and it's likely you'll see some changes in what's offered. So don't automatically select what you had last year. Carefully review your options.
It may feel as if you don't have much money left after you select your options, but be thankful you have the choice.
Michelle Singletary has a personal finance call-in show that airs Sundays on XM Satellite Radio, Channel 169 ''The Power,'' from 8 to 10 p.m. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071
My husband and I were speaking at my church recently, giving couples tips on how to manage their money, when one man stood up and spoke for many of us. He was confused by the many choices. ''How do you know what to get?'' he asked. ``It feels like after all that I pay for, I have two dollars left in my paycheck.''
I understood his frustration. But those of us who have these choices to make during open enrollment should feel blessed. A decrease in employer-based health insurance has contributed to a rise in the number of uninsured. The percentage of people covered by on-the-job insurance decreased to 59.7 percent in 2006 from 60.2 percent in 2005, according to the U.S. Census Bureau.
So for those of us who will receive a benefits packet, what can we expect this year?
Well, in an effort to cut costs, your employer may be offering financial incentives or penalties for certain healthful or unhealthful behaviors, according to Watson Wyatt, a consulting firm that works with large employers on their open-enrollment programs.
DON'T ASSUME
Pay special attention when you get your benefits packet because your employer may have expanded or changed what was offered during open enrollment last year, said Tom Billet, a senior consultant with Watson Wyatt.
''A lot of people make the mistake of assuming whatever choice they made last year is a good choice for this coming year,'' Billet said.
Here are some of the major trends Wyatt has identified for this year:
• More companies are offering financial incentives to employees who don't smoke or maintain a healthy weight or who agree to participate in wellness and fitness programs. A survey by Watson Wyatt and the National Business Group on Health (NBGH) found that 46 percent of employers offer economic incentives and another 26 percent plan to do so in 2008. For example, beginning in 2009, Clarian Health Partners of Indianapolis plans to give employees a discount on their health-insurance premiums for, among other things, not being overweight.
Some companies will penalize workers for unhealthful choices, such as smoking, by charging higher health-insurance premiums. The extra cost for lighting up ranges from $50 to $100 a month, Billet said.
• Look for more coverage of preventive medical care. Wyatt found fully paid benefits often include reimbursement for vaccinations, exams and screenings for early diagnosis of breast, colon and cervical cancer. Many employers also provide coverage or partial reimbursement for blood pressure, cholesterol checkups and flu shots.
• More employers will be offering workers health coaches, according to another survey by Watson Wyatt and NBGH. A health coach might give an employee advice on how to better manage a chronic illness, such as asthma or diabetes. Wyatt and NBGH found that 44 percent of large employers offer health coaches and another 13 percent plan to offer them next year.
BUNDLE SERVICES
• You may be able to get more than the traditional coverage through your employer. Some plans offer workers a chance to get homeowners and automobile insurance and discounts on other services such as massage therapy or chiropractic care.
• Finally, as healthcare premiums rise, employers are paying closer attention to the people their employees report as dependents. An increasing number of employers are conducting eligibility audits and asking workers to provide proof that those dependents they enroll in the health plan are considered legal dependents.
Employers who have conducted audits typically find between 5 and 7 percent of enrolled dependents should not be covered, Billet said.
FILL OUT THE FORM
When you get your benefits package this year, look through the paperwork to see whether you are required to send a letter verifying the status of your dependents. Ignore the letter or forget to fill it out and you could lose your benefits. I know open enrollment can be a pain. There is so much to go through and so many decisions to make, and it's likely you'll see some changes in what's offered. So don't automatically select what you had last year. Carefully review your options.
It may feel as if you don't have much money left after you select your options, but be thankful you have the choice.
Michelle Singletary has a personal finance call-in show that airs Sundays on XM Satellite Radio, Channel 169 ''The Power,'' from 8 to 10 p.m. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071
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