NerdWallet's Smart Money Podcast
Open Enrollment: Choosing a Healthcare Plan (HMO, PPO, FSA, HSA, HDHP and More)
Nov 7, 2024
In this insightful discussion, guests Kate Ashford, a certified senior advisor in Medicare and retirement, and Tina Orem, a NerdWallet tax expert, break down the open enrollment process. They simplify the intricacies of different healthcare plans like HMOs, PPOs, and HDHPs, discussing how to assess personal needs and budget effectively. They also explain the tax advantages of Health Savings Accounts (HSAs) versus Flexible Spending Accounts (FSAs), helping listeners navigate the complexities of selecting the right healthcare coverage.
32:59
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Quick takeaways
- Understanding the nuances of premium and deductible options is crucial for making informed health insurance choices during open enrollment.
- Choosing between FSAs and HSAs can significantly impact healthcare budgeting, depending on individual usage patterns and financial goals.
Deep dives
Understanding Open Enrollment
Open enrollment is a designated period during which individuals can select their health insurance plans, typically occurring between October and mid-December. It is crucial for people covered by employer-sponsored programs and Affordable Care Act exchanges to take this time seriously, as making the wrong choice can lock them into a plan for the entire year. Statistics indicate that around 80% of employees in large companies often select inadequate insurance, leading to higher out-of-pocket expenses than necessary. This highlights the importance of evaluating options each year instead of defaulting to previous plan selections, which can result in significant financial ramifications.
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