A package deal
If you have recently graduated from high school or college and are on your way into the workforce, you've got a lot of important decisions to make — including figuring out your health benefits options — to keep you feeling and looking your best. allaboutthebenefits.com gives you the information you need to make better health benefits choices.
Does your employer offer extra benefits in addition to a health plan? In addition to the basic health benefits package your employer may offer, there are now other forms of coverage and added perks to consider.
Prescription Drug Plans: This option can be a very important benefit if you have a chronic condition that needs regular treatment or medicine. Plans often cover a certain list of approved medications for a co-payment, while others reimburse you for a percentage of your costs after you've paid full price at your own pharmacy. It's very important to know what your choices are for prescription drug coverage before you need them.
Chronic Condition Coverage: If you have a chronic condition such as asthma or diabetes, it is very important to figure out if your employer offers the coverage you need. Find out if doctor's visits are covered, both those that are routine checkups and those that are more frequent, and make sure to ask what the annual maximum (the total maximum amount your health plan will pay in a calendar year) is. Some insurance plans offer specific programs for people with chronic conditions to help manage their illness. This may be a deciding factor in choosing the best job for you.
Dental Plans: If your employer offers a dental plan, consider yourself lucky (or as lucky as one can be when going to the dentist). It's a great benefit, as non-routine dental procedures can be quite expensive. And just think - dental coverage removes at least one excuse for not visiting the dentist regularly.
Disability: If you're unable to work due to an injury, illness or health event (everything from having a baby to breaking your arm), short-term disability insurance covers you for up to three months. If you're out for more than three months, it's considered long-term disability. Some plans also have programs that help you return to work.
Discount Programs: Some health plans include discount programs to help you pay for non-traditional services or products that could improve your health. Your plan may offer reduced rates for gym memberships and alternative therapies that aren't typically covered, such as acupuncture and nutritional counselors. Some plans offer discount programs for other services such as dental, vision, disability and long-term care insurance. It is also a good idea to find out if certain health care products may also be offered at a discount, such as vitamins and nutritional supplements.
Employee (Personal) Assistance Programs (EAPs): Many companies offer EAPs as a first step for coping with difficult personal issues such as work/life balance, family problems, substance abuse, depression or financial difficulties. You can speak confidentially with a consultant over the telephone to determine the type of assistance needed and they can often help you schedule in-person sessions with an appropriate advisor or counselor.
Flexible Spending Account (FSA): With an FSA, money is taken from your paycheck before taxes (you set the amount) and put into an account. You can then use that money to pay for medical expenses throughout the year. It's important to understand that FSAs have a "use it or lose it" rule - meaning that you typically must use the dollars in the year in which they are saved or you will lose them at the end of the year (or shortly thereafter). Check with your plan to find out what expenses are "covered," meaning they are approved by the Internal Revenue Service as a qualified medical expense that can be paid for with your tax-free dollars. For example, while the cold medicine you pick up at your local pharmacy can be paid for with your FSA funds, the magazines you buy at that same pharmacy would not be covered. Click here for a full list of allowable FSA health care expenses.
Health Savings Account (HSA): With an HSA, money may be taken from your paycheck before taxes or you can open up an individual HSA account and contribute money on your own. Your employer or a family member can also contribute to your HSA. To qualify for an HSA you must be a member of a "high-deductible health plan." This means that your plan - in many cases a PPO - requires that you pay a certain amount of money up front before your plan coverage kicks in. The great news is that your HSA funds can be used to pay for this deductible. You can also use this money in the future - letting you save for medical expenses down the road. So, even if you decide against that LASIK eye surgery for now, you won't lose that money.
Vision Coverage: This coverage can include annual eye exams and a percentage of the cost of your glasses or contacts every 24 months.
