Get Ready for Open Enrollment! 3 Factors To Consider Before Choosing Health Insurance

You may have frequently heard the words “open enrollment” as the new insurance period approaches, but you are unsure of what the term means and you are confused about which health insurance broker could help you get the coverage you need. Open enrollment in California starts on November 1, 2020, and ends on January 31, 2021. During this time, you will have the opportunity to enroll yourself, your spouse, and your dependents in a new health plan. Here are a few things you should consider while you are doing your research.

1. Pay Attention to Deductibles and Premiums

Should you select a high deductible, low premium plan or the opposite? What is a deductible, anyway? When you choose a new health insurance plan, the deductible is what you pay before your insurance “kicks in”. If your deductible is $2,000, for example, you will need to pay that much money before your health insurance starts applying heftier benefits to your account (you will usually get some free benefits like preventive care before you meet your deductible).

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Usually, when you select a plan with a high deductible, your premium — the amount you pay into the plan every month — will be lower. Low premium, high deductible plans are ideal for those with no preexisting health conditions: They are designed to render the client responsible for most costs of their healthcare. High premium, low deductible plans may be preferred by those who want to meet their deductible quickly, but these plans can be hard on the monthly budget.

2. Investigate Covered California Plans

Many Californians may not be aware of this online marketplace that connects citizens to health insurance under the Affordable Care Act. These plans are different than Medicare and Medicaid and they are available to those who do not receive health insurance automatically through their place of employment. At Sackett & Associates, we can help you comb through these plans to make sure you are getting the benefits you desire and the coverage your family needs. We can also help you determine if there is additional coverage (like dental or vision) that you might need beyond the plan you select.

3. Consider Whether You Need an HSA

A Health Savings Account can be a wonderful way to set aside money specifically for medical bills and appointments — but before you choose a plan linked to an HSA, make sure you truly need this account. If you only have a few medical appointments a year, and if these visits mostly involve preventive care like checkups and minor health issues like sinus infections and sprained wrists, an HSA might be more of a drain on your finances than necessary. Most HSAs expire at the end of the year, so all that money taken out of your paycheck before taxes will not be used if you do not spend it on medical needs.

Don’t delay: Open enrollment is coming soon. Get in touch with Sackett & Associates as soon as possible for more information on how to choose the best health insurance plan for yourself and your loved ones.