Open Enrollment: Health Insurance

Brandon R. Amaral, CFP®, EA
Brandon R. Amaral, CFP®, EA

Founder & Financial Planner, Amaral Financial Planning

Remember that email from HR that you keep ignoring? If you’re reading this, it’s likely time for you to review your employee benefits elections.

HMO? PPO? HSA? FSA? These random letters all stand for very important benefits that can not only save you on taxes but also ensure that your family is properly taken care of.

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Here is an overview of Health Insurance options:

Benefit: HMO Health Insurance

What is it: Health Maintenance Organization

Pros: Typically are cheaper than other options

Cons: You will require a referral from your primary doctor before you can see a specialist

Examples: Kaiser, Health Net, Aetna

Benefit: PPO Health Insurance

What is it: Preferred Provider Organization

Pros: You can go to any doctor or specialist you want without a referral

Cons: Typically the most expensive

Examples: Anthem, Blue Shield, Cigna

Benefit: HDHP + HSA Health Insurance

What is it: High-Deductible Health Plan with a Health Savings Account

Pros: Typically the cheapest and allows you to pay for qualified medical expenses using tax-free dollars

Cons: Higher deductibles for accidents and emergency hospital visits

Examples: United Healthcare + Optum, Cigna + HSA Bank, Aetna + HealthEquity

Benefit: FSA

What is it: Flexible Spending Account

Pros: You can pay for qualified medical expenses using tax-free dollars

Cons: Any funds that you don’t use by the end of the year are lost (some employers allow you to roll $500 over to the next year)

Examples: Navia, Elevate, Payflex

Benefit: DCFSA

What is it: Dependent Care Flexible Spending Account

Pros: You can pay for qualified dependent care expenses, like daycare, nannies, and preschool using tax-free dollars

Cons: Any funds that you don’t use by the end of the year are lost

Examples: Navia, HealthEquity, Payflex

Your health insurance is only a small part of open enrollment when selecting your workplace benefits. If you would like to work with a financial planner to walk you through your options, I would love to help you!

To learn more about becoming a client, schedule a complimentary meeting now!

Disclaimer: This blog is for informational purposes only, and should not be considered advice or recommendations. All opinions expressed herein are solely those of Amaral Financial Planning, LLC, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made to another parties’ informational accuracy or completeness. You should consult your financial advisor, tax professional or legal counsel prior to implementation.