Nov 4, 2008 4:00 pm US/Eastern
3 On Your Side: Save On Health Care Re-Enrollment
PHILADELPHIA (CBS 3) ―
Have you gotten your re-enrollment packet yet? It's that time of year when many companies send out information to see if you want to make any changes to your benefits. With medical costs expected to rise 8 percent next year, Your Money Team went in search of ways to save. 3-On Your Side's Jim Donovan has some suggestions.
OK, so your benefits packet will never make it on to a best seller list. But if you're looking to save money on healthcare, you have to understand your options.
"Don't buy something because it's the best, if you are never going to utilize it," says Robert Petcove, President of Advanced Benefit Advisors in Cherry Hill.
He says it call comes down to freedom of choice.
He adds, "Are you willing to pay less to have that freedom sacrificed?"
For example, if you're relatively healthy and rarely visit a doctor, a plan with a lower premium but higher co-pay may make sense for you.
On the flip side, if you make multiple trips to your doctors, a higher premium and lower co-pay may work better for your budget.
Petcove says, "So you really got to understand where your price and value really cross and find what plan is right for you."
No matter what type of plan you choose, you can save money by signing up for a Flexible Spending Account, also known as an FSA.
"You put in pre-tax dollars out of your paycheck, so you don't pay taxes on those dollars, and what that does it allows you to accrue money overtime to help you with any out of pocket expenses," says Petcove.
Those expenses include contact solution and routine purchases of over the counter drugs. You can even get reimbursed for co-pays and deductibles. Setting aside $1000 in a flexible spending account when you're taxed at a rate of 25 percent will save you around $250 dollars.
The only catch? Whatever money is in your account has to be used in the calendar year or it's gone.
Finally, sign up for wellness programs. Some companies even offer discounts on your premiums for simply filing out questionnaires.
To check out a calculator provided by Advanced Benefit Advisors that can help you figure out the appropriate amount to put into a Flexible Spending Account (FSA). visit the link below:
Advanced Benefit Advisors
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