Once again, health-care costs are expected to rise this year. However, there are ways your teams can reduce their spending. Consider these four tips:
- Brush up on health plan knowledge. Knowing what a health plan does and doesn’t cover is critical for reducing spending. Understanding terms such as deductible, coinsurance and copayment can help employees better understand what they will pay out-of-pocket.
- Stay in network. With health plans, health insurance companies partner with select providers to lower care costs. Employees won’t have these discounts if they go elsewhere (out of network).
- Focus on prevention. Significant savings can be achieved when preventive care services like physical examinations, screenings and immunizations are combined with a healthy lifestyle.
- Ask questions. Employees shouldn’t be afraid to ask their primary care physician questions about comparable procedures or services that are more affordable but still effective. Additionally, they should ask their doctor or pharmacist about comparable or alternative medications.
Worth Noting
Navigating employee benefits can feel overwhelming, especially when life throws in changes. Fortunately, under a cafeteria plan (also known as a Section 125 plan), an employer may allow employees to adjust their benefits outside the annual open enrollment period. Employers don’t have to allow all midyear election changes, only those allowed under the Health Insurance Portability and Accountability Act’s special enrollment rights. Understanding midyear qualifying events and other considerations for midyear changes is important.
The IRS identifies the following “change in status” events that may allow employees to make alterations to your benefit elections during the plan year:
- Change in employee’s legal marital status
- Change in the number of dependents
- Change in employment status
- Change in dependent status
- Change in place of residence
For more information, reach out to The MBA’s HR or Insurance Departments at 814/833-3200 or 800/815-2660.
Lisa McKinney
is the benefits account manager for The MBA Insurance Agency (MBAIA). Contact her at 814/833-3200, 800/815-2660 or lmckinney@mbausa.org
