However, that short-term decision tosave moneycould be a costly one if you have a catastrophic health event.
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
So should you make the switch?
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Here are four questions to ask yourself to help you decide.
What Are My Options?
If your employer offers multiple health insurance plans, you have some comparison shopping to do.
Among the more cost-effective options for employers is the HDHP.
Total out-of-pocket expenses cant exceed $8,050 (individual)/$16,100 (family).
This is how much youll pay for services.
This is the amount at which your insurance company starts kicking in for medical expenses.
This is the amount, typically a percentage, that youll split with your insurance company.
The higher the coinsurance percentage your insurance company offers, the less youll pay.
If your employer offers contributions to either anHSA or FSA, factor that into the total amount.
As an example:
Plan A has a $3,000 deductible and 100% coinsurance.
Plan B has a $1,500 deductible and 50% coinsurance.
Now, lets say you had to go to the hospital and your bill was $6,000.
At 50%, youd need to fork over another $2,250 for a total of $3,750.
How Healthy Am I?
And more importantly, how healthy do you think youll stay for the rest of the year?
One might be disincentivized from going to the doctor, she said.
The difference between the $25 copay and a $90 copay might dissuade someone from making an appointment.
Putting off care could lead to bigger medical issues down the road ormedical bills you cant afford to pay.
In 10 days,these 10 practical stepscould help you get back on the right financial track.
What Does the Rest of My Financial Picture Look Like?
When faced with any financial decision including choosing your health care plan avoid tunnel vision.
you’ve got the option to start by looking at your budget.
Determine if you have enough money to cover the higher deductible without draining your savings.
If not, are there otherareas where you’re free to cut your budgetwithout sacrificing insurance coverage?
If youre keeping score, thats a lot of tax-free money.
How Secure Is My Job?
Youll have an opportunity in a year to rethink your options.
If it aint broke, dont fix it.
Read on:
Need a Hand With Bills?
Listen, we know its tough out there.
But theres no shame in asking for help.
These companiesmake it easy to help yourself and your bank account.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
