It is coming up on that time of year for many employees – your company's health care re-enrollment time. Health care costs are expected to rise more than 12 percent for employees and 9 percent for employers according to an annual study by Hewitt Associates, a consulting group.
The same study projects average health care cost per employee will rise to $9,821 in 2011, up from $9,028 in 2010. It says that employees will pay $2,209, or 22.5 percent of the total premium, up 12.4 percent from 2010.
If you're stressed about paying more in health insurance care costs next year, there are a few ways that you may be able to save a few bucks:
Shop around. Many employers offer more than one plan. If you are on a PPO, consider an HMO. Look through the book of providers and if your doctors (or even just the most important ones) are part of the network, it might be worth the cost savings. This is especially true if you are relatively young and healthy and are not spending a ton of time at the doctor beyond the annual checkup. Ask your colleagues about the different insurance plans, poke around a little on the Internet. Not all HMOs are created equally – some are better than others.
Take a higher deductible. Sometimes taking a higher deductible can help lower monthly insurance costs. This is a smart strategy as long as you can afford the increased deductible or you are unlikely to use your insurance at all. If you decide to go this route, you should consider looking into a Health Savings Account, which is an account that allows you to pay for medical costs before taxes. This can save you a lot of dough if you decide to go the high-deductible route. Kiplinger offers this great primer on the subject that I highly recommend if you are considering this route.
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