Open Enrollment is Now Active. Consider These 4 Tips for Choosing a Health Insurance Plan

Open enrollment (the annual period when you can enroll in major medical health insurance plans), began November 1, 2022, and will remain open until January 15, 2023. You will need to enroll by December 15, 2022 for coverage that begins January 1, 2023. For someone looking to change or add coverage, this offers a short window of time to decide on and select your health insurance plan.¹ To avoid a hasty decision to meet this deadline, take some time now to review and prepare. Below we’ve rounded up our top tips for choosing the right health insurance plan for you and your family’s needs. 

Who Should Utilize Open Enrollment?

The Open Enrollment Period (or OEP) is for anyone looking to make a change to their health insurance coverage, whether through their workplace or the federal market. This could include looking for a cheaper plan with similar coverage, gaining coverage if you previously had none or changing your coverage altogether to better meet your needs.

Tip #1: Assess Your Current Costs 

When thinking about changing your health insurance plan, it’s important to reassess your healthcare-related expenses. Take a look at how much you’re currently paying per month for your plan as well as what sort of out-of-pocket expenses you paid over the past 12 months. 

These could include:

• Routine doctor’s visits
• Specialist visits
• Prescriptions
• Emergency room or urgent care visits

Unless you foresee any major changes in the coming year (such as pregnancy), this could be a helpful indicator when it comes to determining what type of coverage will be cost-effective and appropriate for you.

If you found your out-of-pocket expenses to be too high, now’s your opportunity to search for a plan with lower deductibles (although your monthly premiums will likely rise).

Tip #2: Choose Your Marketplace

You may be able to gain coverage through several marketplaces including:

• Your or your spouse’s workplace
• Federal marketplace
• Local or state marketplace
• Private exchange
• Directly through insurance providers

If you have the option to gain coverage through your employer, this will likely provide you with the lowest premiums. That’s because your employer pays a portion of the premium, which tends to be lower anyway.

If your employer does not provide healthcare coverage (or you wish to look elsewhere for it), you can gain coverage through the federal or state marketplace. You’ll start at Healthcare.gov, which will then direct you to your state’s marketplace (if applicable). While premiums are likely to be higher, you may be eligible for premium tax credits to help offset the monthly cost.

Tip #3: Decipher Your Available Plan Types

There are four common types of health insurance plans you’ll come across when selecting coverage: HMO, PPO, POS, EPO.

Health Maintenance Organization (HMO)

Pros: HMOs tend to have lower monthly premium costs and out-of-pocket costs as compared to other plan types. 

Cons: You’re typically limited to seeing providers only in your network, and these must be coordinated by your primary care provider (unless it’s an emergency). This gives you less overall flexibility.

Preferred Provider Organization (PPO)

Pros: PPOs offer the user more freedom when it comes to choosing healthcare providers and specialists. You can see people outside of your coverage network, although this will typically result in higher out-of-pocket costs. Additionally, you typically will not need a referral from your primary care provider to make appointments with specialists.

Cons: Out-of-pocket costs and premiums tend to be higher for PPO plans, especially when compared to an HMO.

Point of Service Plan (POS)

Pros: With a POS plan, you have the flexibility to visit out-of-network healthcare providers, but typically at a high out-of-pocket cost.

Cons: Similar to an HMO, you will likely need a referral from your primary care provider to see a specialist or have a medical procedure done. Additionally, your primary doctor will coordinate your care for you.

Exclusive Provider Organization (EPO)

Pros: An EPO will typically offer you lower out-of-pocket costs, and a referral is not needed to see specialists or have medical procedures done.

Cons: You will be required to visit specialists within your network unless it is an emergency. An EPO will typically provide less flexibility and freedom when it comes to choosing care providers.

Tip #4: Account For Your Current Providers

As shown above, every plan type either requires you to visit in-network providers or offers lower out-of-pocket costs for visiting an in-network specialist. If you already have preferred providers on your current plan, switching plans could jeopardize your ability to visit them in the future (or cost you more to do so). 

When comparing plans, make sure to check whether or not your current healthcare providers are in-network. If they are, you should have no problem continuing to see them as you did before. If they’re out-of-network, you’ll either have to find a new provider or prepare to pay more for every visit.

Picking the right health insurance plan for you and your family can feel daunting, confusing and rushed. With some time left before open enrollment closes, do yourself a favor and create your plan of action now. Prepare now by determining what type of plan may be right for you, what coverage you know you’ll need and what marketplace you’ll be buying from. When the time comes for you to make a final decision, you’ll be more than ready to choose the plan that’s right for your healthcare needs.

Spiritual Application

While it may seem like a no-brainer, being prepared to make future healthcare decisions has several benefits as it relates to being good stewards of what God has given us(our money and our natural bodies). First, we know that healthcare costs money. Even if a routine or preventative medical appointment doesn't cost you anything out of pocket, you are still most likely paying an insurance premium that allows you to not have to pay for the expense directly. At a minimum, you might still have the hassles of scheduling an appointment, commuting time, gas, lodging, food or other expenses that go along with it. All that is to say, good health costs money. And being good stewards of our health and wealth is a Biblical command. Romans 12:1(NJKV) says, "I beseech you therefore, brethren, by the mercies of God, that you present your bodies a living sacrifice, holy, acceptable to God, which is your reasonable service." 

A second benefit to proper health management is that it opens doors to other avenues of prosperity - both in our physical lives and spiritually. If we choose a good health plan and also make good decisions with our money, who knows what that extra money can go to? Other investment opportunities, a better retirement, increased giving to others, etc. Physically, we can continue using our body to their maximum capabilities if we are healthy and energetic - spending more time serving at our church, more time with family, pursing hobbies, or even finding up other ways to produce income. The list goes on. 

The final benefit to proper health management is that it leads the way for others to make good decisions in their lives. If our kids, grandkids, friends, or colleagues see the benefits of good stewardship rippling through other areas of our lives, who wouldn't want to know how we do it? God designed our bodies to function as the vehicle by which we lead others to a fuller experience of him, and the better we do our part, the better others will see him through us. Let's use our bodies to the fullest extent God created them for! "For we are His workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them." Ephesians 2:10(NLT)

Evergreen Financial Group is a Fee-Only Financial Planning and Investment Firm located in Billings, MT serving clients in Montana, Wyoming and virtually across the country. Evergreen Financial Group specializes in working with Christian families, including Young Professionals, Current and Future Retirees and Church Staff Members.