Tips for Choosing the Right Health Plan

At least a quarter of all employers, and well over half of large employers, are offering their workers a choice of a high-deductible health plan, according to Mercer, a benefits consultant. This is the time of year when many employers ask you to sign up for health insurance, so if you are going to take the high-deductible plunge, here are some things to consider: How High Is High? The days of having a health plan that covers all out-of-pocket costs are largely gone. Even H.M.O. plans, which require you to go to a doctor or hospital within a specific network, may require you to meet a deductible before your coverage kicks in. There is no precise definition of a high-deductible plan, but it is widely considered to be a plan that is paired with a special savings account and with a deductible of at least $1,300 for an individual and $2,600 for a family. There are often different deductibles covering your prescriptions, a hospital stay or an emergency visit, as well as more routine care. The Affordable Care Act sets annual limits on how much employees can be expected to pay out of their own pockets. In 2017, an individual is responsible for as much as $7,100, and families face a cap of $14,300. Savings and Cash Flow If you have saved the paperwork from your insurer from previous years, you may be able to get a pretty good sense of how much you might typically spend, barring a medical emergency. If you really don’t have the money to pay for even minor medical emergencies, like an unexpected trip to a specialist, an expensive blood test or an M.R.I., you should think twice about a high-deductible plan. Also factor in a health savings account. That can help offset the out-of-pocket costs. These accounts can accumulate funds tax-free, you can often invest the money and use it for a medical rainy day in the distant future. And some employers even pitch in $500 or $1,000 to the account.