There are many different elements to your compensation at work. And while your salary is the largest part of your compensation, your employment almost certainly comes with other benefits. These vary in usefulness and value from discounts on company products or services, all the way to providing your healthcare insurance. Most people in the United States receive their health insurance through their employer, but few people really understand all of their options. Healthcare can be confusing without some help to get you through. Here are three things that you need to know about your workplace healthcare benefits.
Types of Plans
The first thing that you need to know about your workplace healthcare benefits is what types of plans are available through your employer. There are several different types of plans, each with their own variations. HMO and PPO plans are the two most common varieties. An HMO or Health Maintenance Organization plan gives you coverage with only a select group of physicians A PPO plan allows you to choose your care providers in all instances but does come with higher costs as well. Consider which type of plan is best for you before making a choice.
HSAs and FSAs
The next thing that you should know about your workplace healthcare benefits is that you can use HSAs and FSAs to further decrease your healthcare costs. HSAs (Health Savings Accounts), and FSAs (Flexible Spending Arrangements) are tax-advantaged accounts that allow for spending on healthcare costs. An FSA is offered through your employer to set aside money pretax for healthcare spending. You can use an FSA on any medical expense, including dental care. These accounts can be a great way to make your healthcare coverage plan make even more sense, keeping your medical costs low and tax-free.
HDHPs
The final thing that you should know about your workplace healthcare benefits is whether you have an HDHP, or “high deductible health plan”. HDHPs have very low premiums, but in turn they cover very little and have very high deductibles. If you have an HDHP, you should set up an HSA, but not through an employer. HSAs also allow for tax free growth, and you can invest your money In an HAS to grow tax free.
Getting your healthcare from your employer is great. But it also means you need to look out for your interests a bit stronger as well. Make sure that you know these three things about your workplace healthcare benefits to get the most from your coverage.
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