Health Insurance Navigator

Lisa Zamosky

Open enrollment is just around the corner for anyone who gets their health insurance at work. A few trends in employee health benefits bound to have an impact in the upcoming year are worth mentioning.

For starters, early results of a survey involving 1,600 employers conducted by benefits consulting firm, Mercer shows that many companies expect to see the lowest increase in their health care costs in over a decade — 5.4% on average.

Sounds like good news, you say, and it is… if you’re an employer.

For workers, the story is different; rising health care costs are expected to exceed earnings growth. Translation: If you got a pay raise, it will be gobbled up by rising health care costs, leaving little likelihood of that money ever making its way into your pocket.

What’s more, cash-strapped workers are avoiding the doctor’s office in this weak economy, one reason cited for employers’ health care savings.

So how can you get the best bang for your buck this enrollment season? First, check back on last week’s blog about how to choose the best possible health plan.

Along with that list of tips, keep the following trends in mind.

High-Deductible Plans with HSAs

If you’re given a choice of health plans at work, expect your employer to nudge you toward a high-deductible plan by offering you generous credits toward the cost of your insurance premium.

“Employees will have choices between a traditional PPO and a high deductible plan, where they can elect a plan for a lower premium but take much more responsibility on the front end for their health care,” says Mike Thompson of PricewaterhouseCoopers’ Health and Welfare Practice.

As I suggested in this earlier post, be sure to do the math to make sure you can afford all associated costs.

High deductible plans often come with health savings accounts (HSAs). HSAs are tax-free investment accounts that you can open if you’re enrolled in a qualified health insurance plan. These plans have a deductible of at least $1,200 for an individual and $2,400 for a family.

HSAs allow employees to put aside money tax free and either use that money to cover healthcare costs or save it for future expenses. You also get to spend the money tax-free, making HSAs a powerful investment tool.

Choose Wellness

Thompson says another trend that’s been on-going and picking up steam is an emphasis on wellness programs. Employers are encouraging workers to become more health-conscious. Healthier employees, after all, use fewer medical services and cost less money to insure.

Many employers offer incentives, such as lower premiums, cash or gift cards if you participate in activities like filling out a health risk assessment or smoking cessation classes, among other options.

“Beyond selecting a plan that employees find best suited for them, be aware of incentives employers are offering related to certain health behaviors,” Thompson advises. These programs can serve to enhance your benefits and save you money at the same time.

Tell me: Getting ready to pick next year’s health insurance plan? What will you look for?

SOURCES:

Mercer Consulting: “Latest survey finds health benefit cost growth for 2012 likely to be the lowest in 15 years.”

Mike Thompson, PricewaterhouseCoopers’ Health and Welfare Practice.