Time To Review Your Workplace Benefits

Brace yourself for higher health insurance costs in the new year—premiums, deductibles, or both could be on the rise as employers face mounting plan expenses. But if you’re healthy and have a robust emergency fund, a high-deductible health plan (HDHP) might offer you a smart, money-saving option. And with an HDHP, you could gain access to a Health Savings Account (HSA), an incredible tax-advantaged way to save for future healthcare costs. Just remember—an HDHP is only a good choice if you have enough savings to comfortably cover that deductible.

Not planning to switch plans? It’s still wise to check whether your favorite doctors and facilities will remain in-network for the new year. Taking a few minutes to prepare now could save you major headaches later.

As the new year approaches, you may see changes in your health insurance costs, with premiums and deductibles potentially increasing as employers anticipate higher plan delivery costs. If you're in good health and have a sizable emergency savings fund that could cover your deductible, you might consider switching to a high-deductible health plan (HDHP), which usually offers a lower monthly premium. However, only consider an HDHP if you have enough savings to comfortably cover the deductible—this is essential for avoiding unexpected financial strain.

One advantage of an HDHP is the potential for a companion Health Savings Account (HSA). An HSA provides a triple tax benefit: contributions are made pre-tax, the balance grows tax-free, and withdrawals for qualified medical expenses are also tax-free. This account can be a smart way to save for future healthcare costs, with the flexibility to use funds immediately or years later. Some employers even contribute to employees' HSAs, which can further boost your savings.

Even if you're sticking with your current health plan, it's crucial to confirm that your preferred healthcare providers will remain in-network next year, as networks can change annually. Taking the time now to review your plan can help you avoid surprises and ensure continuity of care in the new year.