Open Enrollment is Here, Are You Ready?

PRLog (Press Release) - Nov 16, 2009 -
Over Sixty percent of new bankruptcy filings are the result of unpaid medical bills.  Most American employers offer health insurance to their staff.  Fall is typically open-enrollment season for health insurance.  During open enrollment employees choose health, life, vision and dental coverage options for the coming year.

Maya Jinwright Owner of Full Cycle Medical Management, suggests that consumers take a proactive approach to their health insurance choices.  The current economic situation makes it imperative to save money.  In spite of the efforts by the Obama administration health insurance costs are steadily increasing.

Indemnity, high-deductible, PPO, or HMO plan: With indemnity coverage, the beneficiary pays a portion of costs and the insurance company pays the rest. Most plans today are HMO (health maintenance organization) or PPO (preferred provider organization) managed care plans. With these plans, the beneficiary pays a co-payment for medical care visits and has an annual deductible for certain expenses. Be sure your preferred physicians are in the plan's network, or you might pay higher out of pocket expenses and co-payments.

High-deductible plans (indemnity or other) mean beneficiaries carry a higher amount of financial risk in exchange for much lower monthly premiums.
To help choose a plan, calculate total monthly premiums for the year, plus total co-payments and out-of-pocket expenses for the family's health care visits and prescription medications. Then look at what one ER visit and one surgery (or whatever possibility might befall your family) would cost with each plan. Also consider the lifetime maximum -- a serious illness could exceed a $1 million or $2 million lifetime maximum.
Flexible spending account: A flexible spending account (FSA) is a tax-benefited account that allows employees to be reimbursed for medical and dental expenses on a pre-tax basis. If your employer offers an FSA, calculate your anticipated annual expenditures to select an annual amount that will maximize your tax benefit. Then, track your expenses and keep organized records, this will ensure that you obtain reimbursement for your expenses.

Health insurance coverage is one of your most important financial decisions. Like any other financial decision, take careful consideration of the options.  Health insurance ensures that you are protected if a medical emergency arises.