Open enrollment season: Don't ignore your healthcare options

CLEVELAND -- Chances are you may have noticed your healthcare costs have jumped. Nationwide, they're up an average of 10 percent.

The economy and the uncertainty of healthcare reform are two reasons experts say fees are skyrocketing. The question you have to ask yourself is, what risk are you willing to take?

It's open enrollment season and independent insurance broker Jim Schade, of The Alpha Group Agency, is working long hours helping people re-evaluate their healthcare.

His company represents more than a dozen health insurance carriers. He says now is not the time to ignore your coverage options because what worked before, may not work for you now.

"People really can't take that approach anymore because it could be hundreds, or even thousands of dollars that they're leaving on the table," Schade says.

If your employer offers a choice, study the options. Check the deductibles and the out-of-pocket maximums. Then evaluate how you use your health coverage.

How often do you go to a doctor? Do you have a chronic condition? Do you only go once a year for a physical?

Only you know the answers and that should determine how you look at your health plan, how you use your health plan, and which plan is better for you.

Schade advises to take advantage of government tax breaks. If your employer offers a Flexible Spending Account, remember it's a "use it or lose it" plan. But it may help cover drug costs, dentistry and eye care.

"I really urge people to put even a few hundred dollars into a flexible spending account, because you're gonna have expenses and for every dollar you put in, you're basically saving 25 cents in taxes," Schade says.

A Health Savings Account may also be offered by your employer. It requires a high deductible health plan but the money in this account does roll over to the next year.

"If you have an FSA offered to you, put a couple hundred bucks in. If you have an HSA, put as much money into your health savings account as you can, cause you're gonna have a high deductible and you want to make sure you have the money in there to fund the deductible," Schade advises.

If your spouse's company offers healthcare, it may be cheaper for each of you to take individual coverage. In fact, don't be surprised if your company chooses to no longer cover dependents. 

If you've recently lost your job and you have the COBRA option, Schade says take advantage of it. The government is still offering a subsidy that will cover up to 65 percent of cost.

And if you're young and healthy, do some insurance shopping. Plans are out there for as little as $125 a month.

Schade suggests that lower income people who can afford coverage should consider a higher premium plan because then you can budget accordingly and you'll know your cost as opposed to a "what if" scenario, where you might have to meet a high deductible.

If you're confused, your company's Human Resources person should be able to guide you. Or you may consider contacting an independent broker to guide you.