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.
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
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
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.