MYTH: A traditional co-pay plan has defined costs I can anticipate in advance and a Consumer Driven Health Plan does not.
TRUTH: A Consumer Driven Health Plan coupled with an HSA allows you to control your out-of-pocket expenses on a very personal level. Consider this, your employer offers a plan with a $3,000 deductible and contributes $500 to your Health Savings Account. This money can be used to offset the $3,000 deductible. If you contribute $2,500 (still less than the maximum IRS allowable contribution), you have defined your costs and limited your out-of-pocket at the time of service.
MYTH: There are no tools available for consumers to really understand health care costs.
TRUTH: Over the last few years several tools have been introduced to help consumers shop for the best care (measured by quality and cost) including the most competitive costs for both care and prescriptions. The following three basic tips will also help you be the best possible health care consumer.
1. Stay away from the hospital. Whenever possible choose an urgent care, free standing lab or radiology clinic over the hospital. Hospitals have significantly higher overhead, which is passed on to the health plan, you and your employer.
2. Take advantage of preventive health care. Nearly all plans now cover routine preventive care, such as annual physicals, immunizations, flu shots, etc. at 100%. Check with your health plan administrator to learn more about what is covered.
3. Talk to your doctor. Take advantage of the time you have with your physician to ask questions about alternative options available for medications or even treatment. If surgery is suggested, ask detailed questions about the recovery period, the success rate, time off work, etc.
MYTH: Knowing what my annual health care expenses are is not important to me.
TRUTH: Whether it is the near future or years down the road, at some point your financial situation will be impacted by health care expenses. According to a 2009 study, more than 60% of U.S. Bankruptcies were due to health care expenses.[i] To avoid being unprepared, it is important to understand what your plan costs and what other options cost in comparison. Then document what you spend each year in out-of-pocket costs in addition to the “premium” you pay, most likely through payroll deductions. Knowing your numbers will help you plan for your health care expenses today and for the future.
[i]Tamkins, T. (June, 5, 2009) Medical bills prompt more than 60 percent of U.S. Bankruptcies. CNN. Retrieved from cnn.com on October 9, 2011