Increased health care costs could mean higher deductibles for people with employer-based plans.
While 2015 may seem like a long way off, decisions you make within the next few months could affect how much you pay for health care in the coming year.
Health care costs are expected to grow 6.8 percent overall next year, according to a report from PricewaterhouseCooper's Health Research Institute. While not all this growth will be passed on to consumers, it's likely you'll see some increases, particularly when it comes to your health insurance.
The report points to economic improvements as part of the driving force behind the increase, as people are now seeking medical care for things they put off when times were tough. Investments in technology, specialty drugs and increased physician employment are also spurring the growth.
For the consumer, this increase in medical spending could mean paying more for insurance, as employers look to cost trends like this to determine which health plans to offer. Over the past several years, this has translated into a greater number of employees being pushed into high-deductible plans, for which they must pay more out of pocket before their coverage kicks in.
In fact, the HRI report says enrollment in such plans has tripled since 2009, and among employers that haven't made the switch to such high-deductible plans, 44 percent say they're considering it.
Fortunately, with open enrollment for employer-based health care plans and Obamacare plans right around the corner, now is a great time to analyze your options and prepare for the possible increases in cost.
Reviewing Your Health Insurance Plan
Open enrollment is a period everyone should take advantage of, even if you're content with your plan. You may find there's a better or more affordable option available that can fit your needs just as well.
Financial advisor Brian Frederick of Stillwater Financial Partners in Scottsdale, Arizona, recommends you try to assess how much health insurance you'll need in the coming year, considering any chronic conditions you may have or expected costs and changes, like having a baby.
'If you don't see yourself going to a doctor for anything other than an annual checkup, you're going to need a different health plan than if you're managing chronic conditions or recovering from an accident or illness,' he says.
If your employer switches to a high-deductible plan, for instance, you may not see much of a change on your end if you're relatively healthy and only go to the doctor for preventive care, which is free under the Affordable Care Act.
Depending how much your employer contributes to your insurance coverage, it may make sense to look at other plans through the ACA marketplace. Frederick says this is especially true if you need coverage for a family.
'Look at how heavily your employer subsidizes your care versus that of your dependents,' he explains. 'If they only subsidize the employee's coverage, it might make sense to have the dependents get their coverage on the open market.'
Other Opportunities to Save
Adjusting your health insurance coverage isn't the only way to prepare for increased costs.
Consider a Health Savings Account. An HSA allows you to contribute pre-tax dollars to an account used solely for health expenses. These expenses, like your pre-deductible costs, copayments and medications, can easily add up, and an HSA can help ensure you have the money available when you need it.
Shop around.Hospitals and clinics are providing a service, and just like other service industries, there is competition. Consumers are becoming more aware of their range of options and shopping accordingly. From the insurance marketplace to greater price transparency in hospitals, it's getting easier to choose health care providers that balance quality and affordability. With a hospital comparison tool, for instance, you can compare prices and quality ratings before scheduling a procedure.
Save on prescriptions. While only 4 percent of Americans take specialty drugs - such as those used in the treatment of hepatitis C, multiple sclerosis and other chronic and costly conditions - these drugs account for 25 percent of drug spending in the U.S. But whether your medications are classified as specialty drugs or not, monthly prescription costs have the potential to take a significant chunk out of your personal health care budget. Save on prescriptions by opting for generics when possible; comparing prices at local drug stores, wholesale clubs and reputable online pharmacies; and talking with your doctor about low-cost alternatives.
Check for coverage and billing errors.A recent study from NerdWallet Health found Americans are frequently overcharged on erroneous medical bills, with an estimated 4 in 5 of such bills containing mistakes. Left unchecked, these errors contribute to the leading cause of personal bankruptcy in America: medical debt. Always ask for an itemized version of your medical bills, and review them with meticulous attention to detail. Wrong dates of service, charges for procedures that were cancelled and duplicate charges are all relatively common medical billing errors. If your insurance company denies coverage, double-check their work. An error on their part shouldn't cost you.
Growth in the health sector is a generally positive thing, marking a rebound after troubled economic times. For most consumers, preparing for the potential increase in costs can buffer the impact and ensure you enter 2015 equipped with proper coverage.
0 comments on Health Care Costs Expected to Rise in 2015: Are You Ready? :
Post a Comment and Don't Spam!