30 awkward minutes of staring at the ceiling in order to avoid eye contact or looking directly into a blinding light while answering small talk questions as a complete stranger sticks their fingers and pointy tools into your mouth.

To continue the awkwardness, the dentist comes in to say hi and take a quick peek (if you’re lucky), and then you are sent on your way with a little white plastic bag filled with dental hygiene goodies and a paper appointment card that you will inevitably lose before they call to remind you in 6 months.

At least we all know what to expect.

Despite the awkward predictability, having your teeth looked at once or twice a year is a good idea, if for no other reason than preventative checkups to get a head start on fighting the development of periodontal disease, gingivitis, tooth decay and removal, etc., and the expensive treatments and/or surgery that could follow.

So why doesn’t everyone do it? It’s usually one of three reasons:

1. They are scared of the dentist.
2. They just don’t give a damn about their teeth or hate acknowledging a problem might exist.
3. They do not have dental insurance to cover the visit and don’t want to pay out-of-pocket.

Unfortunately, I can’t do much to help you with #1 or #2 other than simply telling you to “get over it”.

#3 is a big problem in the U.S. Only about 50% of Americans have dental insurance. And according to an ADA study, “Six in 10 Americans who have not visited a dentist in the past year (60%) say the cost of dental insurance is one of the primary reasons they do not visit a dentist.”

A Cheaper Alternative for those without Dental Insurance

For those folks without dental insurance, there may be a cheaper alternative to the costly dentist.

Credit goes out to my wife, who is attending nursing school at a local community college and discovered this awesome hack. The dental school at her college offers cheap dental care via visits to students enrolled in the dental hygiene program. A quick look around showed that a number of community colleges and vocational training schools offer the same service. Because they don’t have an advertising budget, the only way one might find out about these services is word-of-mouth.

I know what you’re thinking… you may shiver at the thought of having a student-in-training put pointy objects in your or a loved one’s mouth. Fortunately, their work is carefully supervised by licensed dental hygiene faculty and a clinic dentist. As a result, you might even get a better cleaning and more attention than at a normal dental office because the students are being graded on their performance. And with the primary goal of a dentist visit being preventative checkups, you will have a professional dentist looking at your teeth closer than any dental office, to meet that goal.

How cheap is the dental work? As an example, her college’s dental school offers the following rates:

• Oral health screening: $0
• Comprehensive dental hygiene care: students, seniors, & children: $25, adults: $40-60
• Dental health instruction: $0 (part of hygiene appointment)
• Panorex or full-mouth X-rays ($35)

That is probably cheaper than what those of us with dental insurance are paying in premiums, ironically.

Restorative dentistry (fillings), oral surgery (removal of teeth), orthodontics (braces), or denture services are typically not offered, but the goal here is preventative health more than anything else, so that hopefully you can avoid those expensive procedures.

For those without insurance, this could be a sufficient and cheap alternative to the much riskier (and costlier down the road) avoidance route.

Have you had dental school work done? How was your experience?

Related Posts:

• How to Reach Health Insurance Nirvana with an HDHP & HSA
• What is an HSA?
• What is a HDHP?
• Death to the Cheapskate

How to Get Cheap Dental Care without Dental Insurance is copyrighted by 20somethingfinance.com without consent to republish.

If you’ve made the move to a HDHP, paired with an HSA that is sponsored by your employer, there is a health insurance “sweet spot” that nobody ever really talks about that you should aim to hit. And it’s significant. Why? When you hit it, health care costs will effectively be zero for you and it will be one less thing you’ll have to stress about financially.

This sweet spot that I speak of occurs when your HSA balance (fed by employer’s contributions) exceeds your annual out-of-pocket maximum for the first time. When this happens, your health care expenses are limited only to the HDHP premiums that you pay for your insurance – which should already be less than a traditional health insurance plan because of the high deductible.

At this point, your cost of health care expenses that you will personally pay out-of-pocket are zero, and since HSA’s roll over from one year to the next, each subsequent year that you don’t have a major medical issue should also lead to zero health care expenses out of your pocket. On top of that, any additional contributions will continue to add up, extending your protection beyond one year.

Pretty nice, eh?

Here’s how to figure out what you need to do to hit this health care “nirvana”…

1. Find out what your Employer Contributes to your HSA

The amount your employer contributes to your HSA will vary, so you will need to find out what your employer offers. Most employers offer an annual contribution because HDHP’s save them cost on premiums versus traditional health insurance plans and they want to encourage their employees to enroll in them.

I’ve seen employers contribute up to the annual deductible amount. The annual deductible amount varies per the plan your employer offers, but the minimum allowed by the IRS is $1,200 per individual and $2,400 per family in both 2011 and 2012.

The annual deductible is the annual amount you are responsible for before your insurance kicks in. Once you hit this point, your expenses for a given year are limited since the HDHP will kick in and cover a large percentage (usually 90%-100%) of additional costs.

When your HSA balance exceeds your annual deductible, your risks of significant out-of-pocket expenses are pretty limited, but they can still occur. This is a great milestone to hit, but we want to take it one step further, which leads me to the second component…

2. Find Out what your Annual Out-of-Pocket Maximum is

Again, this will vary by employer. The maximum out-of-pocket allowed by the IRS for a HDHP per year is:

• 2011: individuals – $5,950, family – $11,900
• 2012: individuals – $6,050, family – $12,100

This is the most that you are ever responsible to pay out of your pocket for health care expenses in a given year. Once you hit this point with your HSA balance, you will no longer have any out-of-pocket expenses, so long as you stay on your employer’s plan. Even if you switch employers or become self-employed, you can take your HSA with you and if you sign up for a new HDHP you still may be safe from out-of-pocket expenses if your balance exceeds your new out-of-pocket maximum.

This amount may vary based on whether the medical services you receive are in-network or out-of-network. In-network will always be lower, so make sure that you stay in-network, if at all possible.

3. Calculate your “Sweet Spot” and Start Working Towards it

The equation is pretty simple. You will hit the sweet spot when:

HSA Balance – Out-of-Pocket Maximum >= $0

Whether that takes one, two, three, or more years, it’s a worthwhile milestone to set out to achieve.

My HDHP & HSA Example

1. My employee contributes $2,400 annually for the family plan
2. My out-of-pocket maximum is $4,800 annually for the family plan
3. So, technically, if I have zero health expenses over a two year period: ($2,400 x 2) – $4,800 = $0

It would only take me two years to hit health insurance nirvana. Having zero health expenses over a two year period is possible, if not likely, but you get the idea. What’s more likely is that I hit this point when my employer contributes at the start of year 3.

Health Care Nirvana Discussion:

• Have you reached this health care expense sweet spot?
• How much of an HSA balance would you need to exceed your out-of-pocket maximum?

Related Posts:

• Where to Get the Cheapest Flu Shots
• 6 Open Enrollment Season Must Do’s
• How to Buy Glasses Online
• 5 Part-Time Jobs with Health Insurance Benefits
• Over-the-Counter FSA, HSA, & MSA Changes

How to Reach Health Insurance Nirvana with your Employer’s HDHP & HSA is copyrighted by 20somethingfinance.com without consent to republish.

Why? I’m young, healthy, and I haven’t been to the doctor more than a few times in the last few years (knock on wood). As such, a HDHP offers me lower premiums than a traditional health insurance plan.

That was a huge selling point, but the other big selling point of the HDHP was the access it permitted to the HSA it is paired with (which my employer contributes to).

HSA’s are a key component to HDHP’s, so it’d only be prudent to give more detail on what they are, how to use one, and what medical expenses are covered.

What is a HSA?

HSA’s, or health savings accounts, are tax exempt accounts that allow you to contribute tax deductible funds that you can later use to pay for qualified medical expenses. Many HSA’s come with a debit card that makes the payment and accounting easy.

Unlike FSA’s, you own the HSA and can take it with you when you leave an employer. And when you turn 65, you can use HSA funds on not just medical expenses, but anything, without penalty.

HSA’s are very similar to traditional IRA’s or 401K’s in many ways:

• you can contribute tax deductible contributions through your employer, much like a 401K.
• you can invest the funds in the account.
• there are annual maximums.
• your employer can contribute to the account.
• the entirety of the balance rolls over from one year to the next.

The main difference is that you can cover qualified medical expenses with the account. Many HSA’s come with a debit card for you to use to cover these expenses.

What expenses does an HSA cover?

HSA Qualified Medical Expenses

There are a lot of medical expenses that you can use your HSA funds to cover. Some of the most common include dentist and doctor visits and procedures, prescription drug costs or co-pays, laser eye surgery, eye exams, contacts, eyeglasses, chiropractor, and birth control.

If you have any medical conditions that require special equipment or treatment, these expenses are typically covered as well.

For a full list of what medical expenses are covered by a health savings account, check out IRS publication 502.

What Expenses are not Covered by an HSA?

Publication 502 also has a list of items not covered as well. But two of the biggest expenses you may be wondering about are insurance premiums and over-the-counter drugs.

Generally, you cannot use your HSA to cover insurance premiums. There are some exceptions:

• COBRA premiums
• Medicare
• insurance premiums while you are unemployed

A new over-the-counter FSA, HSA, and MSA change in 2011 under the Affordable Care Act dictated that you can no longer use HSA’s to pay for over-the-counter medicine. Ironic that it was part of the Affordable Care Act, no?

Despite these two downers, HSA’s still offer incredible benefits over traditional insurance plans when it comes to covering medical related expenses.

If it’s not in Publication 502′s covered list, you can probably assume it’s not.

HSA Contribution Maximum Limits

Much like IRA’s and 401K’s, HSA’s have annual contribution limit maximums that are adjusted every year with inflation.

It’s likely too late to start contributing to an HSA in 2011, but the 2012 HSA contribution limits are:

• $3,100 for an individual
• $6,250 for a family

There is also an HSA catch-up contribution for those over age 55 of an additional $1,000 per year.

One big difference in HSA contribution maximums vs. 401K’s is that any employer contributions must be subtracted from the maximum contribution, whereas employer 401K contributions are completely separate.

For example, if you have an individual plan and your employer contributes $1,000 to your HSA during 2012, the maximum amount you could contribute would be $2,100 ($3,100-$1,000)  if you were under age 55.

Who is Eligible for an HSA?

In order to be eligible for an HSA:

What Happens to your HSA when you Switch Plans? Can you do a HSA Rollover?

When you leave an employer or end your participation in an HDHP, the HSA belongs to you. HSAs can be rolled over from one HSA to another if you are trying to consolidate, much like IRA’s can. You cannot roll over an HSA into an IRA or 401K.

Contributions made to an HSA belong to the participant immediately, regardless of who contributed (you or employer).

If you move back to a traditional insurance plan and stop using an HDHP, you can still use your HSA funds to cover qualified medical expenses.

HSA Vs. FSA: What’s the Difference?

If you’ve had an FSA in the past or are considering one, you are probably wondering how FSA’s differ from HSA’s. There are a few key difference between HSA’s and FSA’s.

• You own an HSA, your employer owns the FSA.
• You can roll over HSA funds from one year to the next, you cannot do this with an FSA.
• You can invest funds in an HSA, you cannot with an FSA.
• Contributions maximums between the two differ.

More Health Savings Account Info?

Check with your employer, as details around what they will contribute, HDHP premiums, and other factors may vary.

Also, check out IRS publication 969 for more on HSA’s. Also, check out my previous HDHP post for tips on determining if an HDHP makes sense for you.

Do you have an HSA? How has it worked for you?

Related Posts:

• Where to Get Cheap or Free Flu Shots
• How to Buy Glasses Online
• Part Time Jobs with Health Insurance

What is a Health Savings Account (HSA)? is copyrighted by 20somethingfinance.com without consent to republish.

I have had a few questions since around that declaration from people who were curious to know more about HDHP’s and I thought it may be beneficial to dedicate a post towards the topic.

What is an HDHP?

An HDHP is a type of health insurance plan that offers lower monthly premiums than more traditional plans like PPO’s or HMO’s in exchange for a higher deductible – hence the name “high deductible health plan”.

They are usually paired with a health savings account (HSA) that allows you and/or your employer to make tax deductible contributions to. You can later use the HSA to pay for your medical expenses, tax free.

More on HSA’s later.

What is a Health Insurance Deductible?

A health insurance deductible is the amount that you must pay before health insurance kicks in and starts paying. The deductible is an annual amount that usually resets at the beginning of the calendar year.

Once you’ve hit your annual deductible, then your insurance kicks in and starts helping. The HDHP may pay 80%, 90%, 100%, etc. of your health care costs at that point – it will vary based on your individual plan.

The minimum deductible amount for an HDHP as dictated by the IRS is $1,200 per individual and $2,400 per family in both 2011 and 2012. In other words, if you have an HDHP, your insurance will not kick in until you hit at least these minimums. Some HDHP’s may have higher deductibles than this.

What are HDHP Maximums?

A HDHP out-of-pocket maximum, or OOP’s, is the maximum amount you or your family are required to pay in any given year, before the HDHP covers any additional medical costs 100%.

This is important because if you have a high cost event or series of events (i.e. car accident, heart surgery, maternity), your out-of-pocket maximum protects you from serious financial hardship and possible bankruptcy.

The IRS HDHP maximum out-of-pocket limits are:

• 2011: individuals – $5,950, family – $11,900
• 2012: individuals – $6,050, family – $12,100

Your plan’s maximums may be lower, each plan varies.

Is a HDHP Right for me?

It depends. HDHP’s are generally great for those under 50 who have no serious documented health complications because the monthly premiums can be significantly lower than traditional HMO and PPO plans.

And if you’re in good health, your out-of-pocket expenses are likely going to be low. I ultimately made the switch because I am young and haven’t had more than 1 or 2 doctor visits in any given year in the last decade (knock on wood). This means that I probably haven’t spent more than a few hundred $ in any given year on health related costs.

I’m also in the situation where my employer offers an HSA with their HDHP and contributes an amount equal to my annual deductible to it. Anything I don’t spend rolls over every year, and in a few years I would have enough to cover an annual out of pocket maximum. Plus my premiums are lower with the HDHP vs. a PPO. So it makes a lot of sense for me.

These are the things you should be considering when deciding to switch to a high deductible plan:

• What is my present health?
• What will my annual deductible be?
• How do the premiums compare to a standard plan?
• What is the maximum out-of-pocket?
• Where can I find a HDHP?

If you are young and healthy, it is generally financially beneficial to view health insurance as a means to cover you in the event of very high cost events versus a way to cut the costs that may occasionally come up because you may end up paying more for your premiums than you are saving.

Where can I Find HDHP’s?

Check to see if your employer offers a HDHP and what the associated premium, deductible, and maximums are. Some employers offer HDHP’s, others do not.

Even if your employer does offer one, ALWAYS compare it to what is available on the free market. In many cases you will be able to find a cheaper alternative than what your employer offers.

The best source for comparing HDHP’s that I’ve found is eHealthInsurance.com. It’s an aggregator that compares the prices of dozens of insurers, which is key because prices can vary wildly based on age, gender, and health history. You need to shop around. I found my term life insurance plan there and have compared HDHP’s there too.

HDHP Discussion:

• Do you have an HDHP? How long have you had it? What has your experience been?
• What are your HDHP premiums, deductibles, and maximums?

Related Posts:

• Where to Get Cheap or Free Flu Shots
• How to Buy Glasses Online
• Over-the-Counter FSA, HSA, & MSA Changes

What is a High Deductible Health Plan (HDHP)? is copyrighted by 20somethingfinance.com without consent to republish.

On average, approximately 5% to 20% of U.S. residents get the flu, and more than 200,000 people are hospitalized for flu-related complications each year. Over a period of 30 years, between 1976 and 2006, estimates of flu-associated deaths in the United States range from a low of about 3,000 to a high of about 49,000 people.

And consider all of the medicine you will be buying if you do get the flu and lost income from work if you are not on salary or lost personal days that would have been your winter or summer vacation. Not to mention the potential cost of doctors visits or hospitalizations. Despite all of that, less than 40% of Americans get flu shots each year, which just blows my mind. It is a smart financial decision to get a flu shot, especially since the most you should ever have to pay is $30 or less. In many cases, flu shots are free!

Flu Shot Effectiveness Rate & Time Before it Takes Effect

I just got my flu shot this past week at my employer for free. After watching both of the aforementioned cashiers blow their nose in front of me after having handled my purchases, I started wondering how long it takes for a flu shot to take effect. According to the CDC’s flu.gov site, it generally takes about 2 weeks for the flu vaccine to protect you from catching the flu virus. Great. Needless to say, I washed my hands after unpacking my groceries.

Flu shot effectiveness rate is widely disputed. There are many variables – age, severity during that year, new strains, unreported cases, and even effectiveness by manufacturer – that make it hard to nail down an effectiveness rate. I’ve seen it reported as anywhere from 40% to 90%. Regardless of effectiveness rate, there is no risk in getting the flu from a flu shot, so sign me up.

Getting Free Flu Shots

There are a number of places to get a free flu shot:

1. Your Employer

My employer offered free flu shots to all employees this year. They also offered free flu shots to family members, for the first time. My wife and I jumped at the opportunity. Check with your employer to see if they will be offering free flu shots this year. If they are not, offer up this feedback – the overall economic impact of the flu in the U.S. is $87.1 billion each year. According to the Center for Prevention and Health Services, the flu indirectly costs your employer about $76.7 million, on average, in missed work and other indirect costs like healthcare.

2. Your Physician through your Health Insurance

Indirectly, through your employer, your health insurance will likely cover free flu shots. In most cases, you will only have to pay your co-pay for a visit to your physician. If you don’t have a copay, it’s essentially free.

3. Your County Health Department

Many county health departments offer free flu shots to children and the elderly. However, increasingly they are offering this service to everyone. The only downside is the potential for long waiting lines. Check out your county or cities website for more information.

The Cheapest Flu Shot Locations

If you don’t have health insurance, or an employer or county health department offering free flu shots, there are a number of retailers offering fairly cheap flu shots. If you do have health insurance that covers flu shots, it might even be more convenient than going to your doctor and in the case of CVS, you will even get a $5 gift card back.

• CVS Flu shots: Costs $29.99. You also get a $5 gift card if your insurance doesn’t cover the flu shot.
• Costco Flu Shots: Costs $20. The cheapest on this list if you don’t have insurance.
• Walgreen’s Flu Shots: No cost listed. Insurance acceptance varies. Usual co-pay applies.
• Rite Aid Flu Shots: Costs $27.99. Insurance acceptance varies. Usual co-pay applies.
• Meijer Flu Shots: Costs $24.99. Insurance acceptance varies. Usual co-pay applies.
• WalMart Flu Shots: Costs $25. Insurance acceptance varies. Usual co-pay applies.

Also, check out the CDC’s Flu.gov flu shot locator website, which will provide a map of locations by you that offer flu shots.

Free or Cheap Flu Shot Discussion:

• Are you getting a flu shot this year? Why or why not?
• Did I miss any locations or ways to get a free flu shot? Share in the comments!

Related Posts:

• What is an HSA?
• What is a High Deductible Health Plan?
• 4 Things to do Before Open Enrollment Closes
• How to Achieve Health Insurance Nirvana

Where to Get Cheap or Free Flu Shots is copyrighted by 20somethingfinance.com without consent to republish.

If you have contributed funds to a flexible spending account (FSA) this year, you have approximately two weeks left (December 31 deadline) to use the funds before they vanish into thin year. And that would be a true shame, since it was your money!

On top of that, 2011 FSA changes present another interesting dilemma. As part of the Affordable Care Act, you can no longer purchase over the counter medicine or drugs without a prescription with your FSA funds starting in 2011.

Here are three ways that you can use up this year’s remaining FSA balance before it’s too late (make sure your employer’s plan allows each of the following).

1. Eyeglasses or Contacts

If you have a decent balance you need to use up, eyeglasses are an FSA eligible medical expense that you can use your FSA to pay for. I’m a big fan of purchasing glasses online because they are usually one-tenth of the price and you can purchase a few different pairs and pick out a favorite. A while back, I wrote a guide on how to buy glasses online. A few of the better online glasses retailers include:

• BestBuyEyeGlasses.com
• FramesDirect.com
• GlassesUSA.com
• EyeBuyDirect.com
• 39dollarglasses.com

Contacts are FSA deductible as well.

2. Over-the-Counter Drugs/Medicine

Due to the 2011 FSA changes mentioned earlier, you will no longer be able to purchase over the counter drugs and medicine with your FSA funds. But what is stopping you from loading up on the items that you consistently use in the remaining days in 2010? Nothing. So go for it. Just make sure you take proper precautions when doing so, so that down the road you aren’t using expired medicine because you bought so much of it.

Yeah, your pharmacist might be a little concerned when you walk up to the counter with 10 bottles of Nyquil and 10 boxes of pain killer, but it’s your money, so go for it.

3. Dental Visit/Annual Physical

If you’re past due for a dental visit or annual check-up with your physician, you can try to squeeze in an appointment before the new year and use your FSA to cover your co-pay or any additional charges.

4. Prescription Medicine

If you do visit your doctor, you can ask them if they will cut you a prescription for an extended quantity. For example, if your prescription is for the standard 30-day supply, you could ask your doctor if they will make out a prescription for a 90-day supply. This way, you can pay for everything up front and use up that leftover FSA money instead of using funds next year for the same prescription.

More FSA Eligible Items

Check out IRS Publication 502 for a complete list of IRS FSA eligible medical expenses.

FSA Discussion:

What are some clever ways you have used to deplete your FSA funds?

Related Posts:

• How Does the Economy & Your Income Impact Health?
• What is an HSA?
• What is a HDHP?
• How to Reach Health Insurance Nirvana

4 FSA Eligible Expenses to Make Before it’s Too Late is copyrighted by 20somethingfinance.com without consent to republish.

And it is usually the only time during the year that you can do this outside of a ‘qualifying event’. A qualifying event is usually a major life change (i.e. newborn, marriage, death in family, etc.) where you can make a major change to your employee benefits.

In 2011, there are some unique changes to flexible spending accounts (FSA), HSA’s, and MSA’s.

2011 FSA Changes (also applies to HSA’s and MSA’s)

Suddenly, flexible spending accounts aren’t so flexible anymore. As part of the Affordable Care Act, you can no longer purchase over the counter items with FSA’s, HSA’s, and MSA’s. According to the IRS,

“Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after Jan. 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan.”

If you didn’t come close to hitting your FSA contribution in 2010 and used it to purchase a lot of over the counter drugs, you might want to lower your 2011 contribution as any funds you don’t spend by the date outlined in your plan are automatically forfeited.

For more information on this change, check out Affordable Care Act FSA Q & A.

And while you’re digging in to your flexible spending account, you should also complete the following open enrollment checklist:

Update health insurance: Many employers make changes to health insurance plan offerings, which can have an impact on your overall cost. You’ll want to review the changes to see which option makes the most sense for you.

Update beneficiaries: If you need update your beneficiaries for 401k, life insurance, disability insurance, or any other benefit your employer offers, this is the time to do it.

Voluntary life insurance/Disability insurance changes: Many employers offer additional coverage and sometimes at a rate that can’t be beat if you were to search on your own. If you’ve encountered a life change, it might be time to re-assess how much coverage you have elected or look into getting coverage for the first time.

Did you alter your FSA contribution this year due to the new changes?

Related Posts:

• How Does the Economy & Your Income Impact Health?
• What is an HDHP?
• Should you Tell your Employer you are Changing Careers?

2011 Flexible Spending Account Changes to Consider for Open Enrollment is copyrighted by 20somethingfinance.com without consent to republish.

This is open enrollment season at many employers. What is open enrollment? It’s basically a window of time that your employer allows you to change your benefit elections for the upcoming year. Since you typically only get one chance to do this, you want to make sure you’re taking advantage of it. Here are some things you should do:

1. Update your Medical Health Insurance:

Look to see if the cost or benefits of the plans will change from what they presently are. Sometimes employers will raise or lower premiums, co-pays, and covered benefits for various plans. This might make it worth it to make the switch, but if you don’t at least look at the details, you’ll never know. This year, I discovered that my plan no longer charges a co-pay for preventative health visits.

2. Update your Medical Flexible Spending Account (FSA):

During open enrollment you can elect how much to put into your FSA. FSA’s are spending accounts that are funding by deductions from your paycheck. The nice thing about FSA’s is that the funds are not taxed, so you are saving money on your medical expenses.

Check to see how much your employer will allow you to deduct (the maximum FSA amount is often $3,000). If you do opt for an FSA, be careful not to load it with more than you will spend as it is often ‘use it or lose it’ in many plans. Not sure how much you might spend on medical expenses? Check out Kiplinger’s FSA calculator.

3. Update your Beneficiary Information:

If you’ve had any major life changes in the past year that would cause your beneficiaries to change, open enrollment is the time to update.

4. Consider Voluntary Life Insurance and Disability Insurance:

If you are currently paying for these things on your own, your employer may be able to offer you a better rate through a voluntary group plan. The costs for these voluntary plans would be deducted from your paycheck.

Open Enrollment Discussion:

• Have you made any changes to your benefits during open enrollment? What changes?
• How much are you funding your FSA with?

Related Posts:

• 8 Personal Finance Spring Cleaning Ninja Moves!
• How does the Economy & your Income Impact your Health
• How to Buy Glasses Online

4 Things you should do Before Open Enrollment Closes is copyrighted by 20somethingfinance.com without consent to republish.

Since 1999, health care premiums have increased an average of $1,600 annually per family. In the last decade, medical cost inflation has increased 50%, while wages have increased by only 31%, and overall inflation has gone up 27%. Medical cost inflation is far outpacing wage and overall inflation and as a result, medical benefits are being reduced. But what does this really mean for the health of our country?

Economic Impacts on your Health: The Vicious Health Care Inflation Cycle

As medical benefits take a hit, everyone is seemingly cutting back on their visits to the doctor. Often times, people may let a nagging, yet seemingly non-life threatening issue run its course versus seeking immediate treatment for it. Here’s how the cycle seems to play out:

1. Medical expense inflation outpaces all other inflation
2. Medical insurers adjust their premiums to pass along the cost to employers and individuals in order to maintain or increase profitability levels
3. Employers pass along the expense to employees and independently insured have no choice but to absorb premium increases (also in order to maintain profitability levels)
4. Employees or those that purchase insurance independently increase their deductible limits to offset the cost of higher premiums
5. As a result of higher deductibles, everyone visits the doctor less often
6. The health of the nation declines as seemingly minor issues become major ones due to lack of medical attention

Recessionary Impacts on Health

Unfortunately, the current recession has resulted in more employers cutting back on health care benefits, or simply cutting people altogether. All this at a time when people are working harder and are more stressed out than maybe they’ve ever been. Do you think we need to seek medical treatment less than we did a year ago?

Economic Impacts on Food Selection

Research has shown that those in lower income brackets tend to eat much less healthy food than those further up the income scale. Healthy whole-grain bread is replaced by Wonderbread, juice is replaced by soda, Whole Foods is replaced by Wal Mart, Olive Garden is replaced Burger King. This is partly due to lower educational levels for those in lower income brackets and the corresponding lack of knowledge on how to eat healthy, but mostly due to the fact that it’s all that they can afford.

Economic Impacts on Exercise

A recent study done by AARP showed that 35% of people from households under $25,000 said they were physically active on a regular basis for a year or more, according to 1,011 people aged 18 and older. This compares to 51% of people from households with income between $25,000 to $49,999 and 60% of people from households with income levels over $75,000.

If you don’t have money, a gym membership or home equipment most likely are going to be a casualties. Unfortunately, exercise tends to be a luxury for those that have all the other basics covered first – food, shelter, heat, water, transportation, etc.

Economic Impact on Your Health Discussion

How are current personal income and larger economic factors impacting your health?

• If you lost your job, would you cut your gym membership?
• If your income was cut in half, would you eat as healthy as you currently are?
• If your employer doubled your premium and you had to raise your deductibles, would you visit the doctor as often?

Related Posts:

• What is a High Deductible Health Plan?
• What is a Health Savings Account?
• Open Enrollment Season
• How to Reach Health Insurance

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