Is Your Wallet Ready for the Inflation Twist? Health Insurance Edition

Isn’t it ironic how life gives you a bonus and then finds a clever way to take it back? That’s inflation for you, folks! A good chunk of us welcomed pay raises as a counter to rising costs, but don’t pop the champagne yet. Here comes health insurance, sneaking up to nibble more out of our paychecks. Aon, those number crunchers, are telling us that by 2023 each employee might have to part with about $13,800 on average for health insurance premiums. Ouch! Seems a notch too high from last year’s 3% increase and sure remains shy from the current inflation pace, isn’t it?

But wait, it’s that time of the year again! Yes, I’m talking about the dazzling season of enrollment in employer-sponsored health insurance plans. Sticking to the old faithful plan might seem the easy route, but is it the smartest? Turns out, a lot of us might be throwing money down the drain by not picking the most wallet-friendly option that still keeps us well-covered. And guess what? Those pricier premiums with lower deductibles may not be your financial BFFs after all.

Let’s dive into some myths and tips about health insurance that could potentially save you a couple of bucks, which let’s be honest, we all love to save, right?

Surprisingly Low Deductibles in “High-Deductible” Plans

When you hear “high-deductible”, you might think you’re signing up for a mountain of costs, but hold your horses – these plans can be quite the dark horse in the race. Marketed as high-deductible, some plans might show off lower deductibles than their peers. The trick? They gussy up with the eligibility for a Health Savings Account (HSA), needing a deductible of at least $1,500 for singles and $3,000 for families in 2023. Just remember to whip out your calculator or maybe a savvy tool like Lively’s to weigh out the premiums against deductibles. After all, a penny saved is a penny earned!

The Charm of an HSA

A triple tax advantage? Yes, please! Contributing pre-tax dollars, watching it grow tax-free, and using it tax-free on qualified medical costs? That’s the HSA promise. It’s like giving your money a supercharged savings plan while lowering your taxable bracket. And let’s not forget, the peace of mind having that stash for a rainy day (or sudden doctor visits) can bring.

HSA Limits – Not So Limiting After All

Think of your HSA a bit like your workplace’s retirement plan. In 2023, stash away up to $3,850 all for you, or double up to $7,750 if you’re covering the fam. A bit older and wiser? Those 55 or up can toss an extra $1,000 into the pot. And the best part? It rolls over every year. So, keep those receipts safe; they could come in handy when you least expect it.

Decoding Premiums and Deductibles

Ready to play detective? Start your quest by crossing off plans that miss your must-haves. Key figures on your radar should be annual premiums, deductibles, and any employer kicks to an HSA or FSA. Thanks to resources like HSA Bank, you can mix and match scenarios to see which plan keeps more dough in your pocket.

Thinking Outside the Box with Alternative Plans

Ever considered looking beyond what your workplace offers? Maybe your partner’s plan has a sweeter deal, or perhaps there’s a savvy state marketplace plan with your name on it. Don’t miss out because you didn’t shop around—sometimes, the grass is greener on the other side!

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