New Year, New Health Savings: A Simple Guide

As we enter 2025, many people are wondering how to manage their health care costs effectively. One important fact to keep in mind is that most of the basics of health insurance won't change. This might seem like a good thing, but it also means that the risk of unexpected bills remains, especially with the complex fine print in most policies. The recent death of UnitedHealthcare's CEO, Brian Thompson, has sparked a conversation about the health insurance industry. This comes at a time when many people are struggling with medical debt, and the costs of care are rising faster than inflation. Did you know that more than 164 million Americans get health benefits through their employers? For many, the deadline to choose new coverage options has already passed. But if you're still looking for coverage, you can do so through the federal healthcare portal until January 31. So, if you haven't already, make sure to get covered this January. A smart move is to check if your doctors and hospitals are still in your insurance network. This is crucial because even long-time providers can sometimes slip out of your network. The start of the year is a great time to review your plan documents or contact your insurer directly.In an emergency, patients are protected by federal and state laws. However, it's good to know that some states have their own rules that might not apply to everyone. Also, insurers sometimes make mistakes, so if you think you've been overcharged, you have the right to appeal. Don't forget to review your medications. Insurance companies decide which drugs they cover, but this can be confusing. It's a good idea to check your plan's list of covered drugs. If your prescriptions aren't covered, you might have to pay out of pocket. But sometimes, there are cheaper alternatives available, like generic drugs. For older adults on Medicare, there's some good news. A new law is capping out-of-pocket prescription drug costs at $2, 000 per year. This will be a big help, especially for cancer patients who often face high drug costs. Your deductible—the amount you pay before your insurance kicks in—might have changed. It's worth checking, especially if you're looking for a new plan. High-deductible plans have low monthly fees but can get expensive if you need frequent care. Lower-deductible plans might have higher monthly fees, but they often cover more. After hitting your deductible, some plans still require you to pay a portion of your bills. This can add up quickly, so it's essential to understand what you're responsible for. Keep in mind that health insurance can be complicated, so it's always a good idea to do your research and ask questions.