Welcome to Extreme Investor Network, where we provide you with valuable information on personal finance topics to help you maximize your financial well-being. Today, we will be discussing important tips regarding health insurance and the rising costs associated with it.
About 165 million Americans receive their health insurance through work, but many do not take the time to thoroughly consider the benefits offered by their employer and the associated costs. According to a report from Aon, employees only spend about 45 minutes a year deciding on benefit options during open enrollment season, which typically runs through early December.
Costs for health care have been steadily rising, with a noticeable jump in recent years. Employers are projected to see a 7.7% increase in health-care costs in 2025, up from 6.9% in 2024. This will inevitably lead to some of the higher costs being passed on to employees. Companies are considering new ways to adjust their plan offerings to offset these escalating costs.
When it comes to selecting a health insurance plan, employees are often presented with options that have varying premiums and deductibles. It is important to consider your previous years’ health-care expenses and needs when weighing these options to determine the best fit for you and your family.
Additionally, more than 50% of employers offer Health Savings Accounts (HSA) along with high-deductible health insurance plans. HSAs can help with additional health-care costs and allow contributions to grow on a tax-free basis.
During open enrollment, employees may also have the opportunity to consider life and disability insurance options. It is essential to evaluate whether the coverage provided by your employer is sufficient for your needs or if additional coverage is necessary.
Lastly, take advantage of voluntary benefits that may be offered by your employer, especially in terms of well-being. Addressing mental health and overall well-being is crucial, and employers are increasingly focusing on providing holistic well-being support to their employees.
At Extreme Investor Network, we understand the importance of managing your personal finances effectively. Stay tuned for more valuable tips and information to help you make informed decisions and secure your financial future.