Your Personal Health Care Plan

Your Personal Health Care Plan

According to a new survey by the National Business Group on Health, the cost of providing employee health care benefits at the nation’s largest employers is projected to increase 7 percent in 2014 – the third consecutive year employers have budgeted this amount. The survey also found that some employers believe health insurance exchanges could be a viable option for certain populations, and more companies plan to offer workers a consumer-directed health plan as their only health benefit.

As the government continues to debate and negotiate health care laws and provisions, health costs may continue to rise. By focusing on making smart health care decisions, including getting the most out of employer or government-sponsored insurance programs, you can potentially free up money that can be invested for your long-term goals such as college savings or retirement.

While you don’t know when you might get sick or suffer an injury, you can predict with some degree of accuracy the amount you will pay in premiums in the coming year. You may also have recurring expenses that you can predict: maintenance medications, prescription glasses or contact lenses, annual exams and vaccinations. Some of these may be covered by insurance, with or without a deductible.

Timing those expenses can make a difference. For example, some employer-based health insurance coverage includes Flexible Spending Accounts (FSA) that allow employees to set aside pretax wages to cover medical costs not covered by insurance. Most flex plans have a “use it or lose it” feature – meaning you must use the dollars in your flex account by year end or you forfeit leftover money. Now may be a great time to audit your FSA payments so far this year against your provider statements to ensure any eligible costs have been paid by the FSA. If you discover that you have paid out of pocket for covered expenses, you may be able to request reimbursement – and then add that cash to your investment account.

Of course, not everyone has employer-based health insurance. Over the coming weeks, we’ll look at how leveraging the efficiency of other health coverage options, like health savings accounts and Medicare Part B, may make additional money available for investing for your future. If you or a loved one needs help with strategies for college, retirement or other long-term goals, call a financial advisor for an appointment.

FINANCIAL FACTS

Comeback – The United States has added 6.15 million jobs since Dec. 31, 2009, equal to 72 percent of the 8.57 million jobs that were lost during the 2007-2009 recession (source: Department of Labor, BTN Research).   

Winner By Month – The best monthly performance on a total return basis for the S&P 500 has occurred in April, October or November in 10 of the past 12 years (i.e., 2001-12). With still four months to go in 2013, January’s 5.2 percent gain is the frontrunner month YTD (source: BTN Research). 

Top Rating – Thirteen U.S. states have a higher credit rating with S&P than does the U.S. government (source: S&P, BTN Research).