Yes, it’s that time of the year again! Imagine it’s Monday morning, you’re tired from the weekend, and you open your email to see the dreaded message: Open Enrollment. Your heart starts racing, and confusion sets in as you try to recall the name of your insurance coverage—Blue Cross? Blue Shield?
Why Do We Procrastinate on Health Insurance?
Let’s face it, most of us are guilty of ignoring that open enrollment email until the very last minute. We scramble, click on last year’s options, and hope for the best.
But why do we do this to ourselves?
Whether we’ve been in our careers for 15 years or 25, many of us hardly change our health insurance options, only adjusting when we’re forced to by our insurance company.
This is fully understandable—we fear what we don’t know.
But this approach isn’t ideal because our health insurance needs change as our life circumstances change.
The Importance of Updating Your Insurance
Your insurance coverage should evolve with your age, health, family dynamics, and income. To make better decisions, you need to understand some key terms.
These terms will help you break down the complexities and allow you to tailor your plan to your current needs. Here are the six essential terms you need to know:
1. Premiums
Premiums are the amounts you pay monthly to your insurer for your insurance coverage. They can vary depending on your employer, where you live, and the plan you choose.
Comparing your premiums with others, especially those in different states or with different employers, can lead to unnecessary anxiety. Focus on your specific options and needs.
2. Co-payments
Co-payments (or co-pays) are the amounts you pay out-of-pocket for specific services like doctor visits. This is a form of cost-sharing between you and your insurer. Knowing your co-payment amounts can help you budget for regular medical expenses.
3. Coinsurance
Coinsurance kicks in after you’ve paid your deductible. It’s a percentage of the costs of a covered healthcare service that you pay, with your insurer covering the rest. Coinsurance can be particularly beneficial if you have frequent medical needs, as it can transfer part of your financial burden to the insurer.
4. Deductibles
Your deductible is the amount you pay out-of-pocket for healthcare services before your insurance starts to share the costs. Plans with lower premiums typically have higher deductibles and vice versa.
You’ll need to decide if you prefer to pay more upfront (higher premiums) or later (higher deductibles). Additionally, there can be separate deductibles for pharmacy benefits, medical care, and other services.
5. Out-of-Pocket Maximums
The out-of-pocket maximum is the most you will pay during a policy period (usually a year) before your insurance covers 100% of eligible costs. For example, under the Affordable Care Act marketplace, the out-of-pocket maximum can’t exceed $9,100 for individuals or $18,200 for couples.
6. In-Network and Out-of-Network
Providers can be in-network or out-of-network. In-network providers have an agreement with your insurer to offer services at lower rates, while out-of-network providers can cost significantly more. Always check if your doctor or healthcare services are in-network to avoid higher costs.
“Picking the right plan and taking advantage of preventative care services is a great way to reduce your risk of greater expenses in the future.”
Preventative Care Benefits
Many of us have fantastic employee benefits, yet we fail to utilize them fully. Preventive care such as annual checkups is often covered, which helps detect issues early before they become expensive problems.
Some plans even cover alternative treatments like acupuncture or holistic medicine, so make sure to review your benefits thoroughly.
Building a Relationship With Your Doctor
We need to drop the stigma that doctors only deliver bad news. If we only visit the doctor when things are bad, that’s the only news we’ll get.
Your primary care doctor is there to keep you healthy, and building a strong relationship with them can save you thousands of dollars in the long run by preventing issues before they start.
Biblical Perspective on Financial Stewardship
As Christians, we’re taught to be good stewards over our tithes and offerings. But when it comes to personal finances and investments, many of us are clueless about what the Bible says.
Questions about managing debt, leaving a legacy, investing, and planning for retirement are crucial, and we aim to teach you how to be both rich and righteous.
Words of Encouragement
Today’s scripture comes from Proverbs 10:4:
“A slack hand causes poverty, but the hand of the diligent makes rich.”
Don’t let procrastination lead you into financial or health-related poverty. Choosing the right medical plan is about more than money; it’s about your health. Be diligent, face that open enrollment email head-on, and make informed decisions.
Take Action
Whether you’re retired or still working, reviewing your medical coverage annually can keep more money in your pocket and less in the insurance company’s. Taking advantage of your benefits isn’t just smart; it’s a form of financial stewardship.
Closing Thoughts
If you need help figuring out your finances, feel free to reach out to us at (377)414-3686 or visit A.B Ridgeway Wealth Management to schedule a free consultation.
New episodes are available every Friday, so be sure to subscribe and stay blessed!
Disclaimer: Ab Ridgeway Wealth Management is a registered investment advisor. The information provided in this blog post is for informational purposes only and should not be considered as specific financial advice. Consult with a financial advisor, accountant, or attorney for personalized advice.
Episode Intro:
Join AB Ridgeway, your trusted Christian financial advisor, as he delves into the often daunting task of medical open enrollment. Discover how to make informed decisions about health insurance coverage while aligning your choices with biblical principles of stewardship and wise financial management.
Key Takeaways:
- Proactive Health Management: Learn the importance of viewing medical open enrollment as an opportunity to actively manage your health and finances.
- Understanding Insurance Terms: Gain insight into essential insurance terms like premiums, co-payments, co-insurance, deductibles, and out-of-pocket maximums to make informed decisions.
- Aligning Coverage with Family Needs: Understand how changes in family dynamics, age, and income should influence your health insurance choices.
- Value of Preventative Care: Explore the benefits of preventative care services covered by insurance plans and how they contribute to long-term financial well-being.
- Taking Ownership of Financial Health: Embrace a proactive mindset towards financial health by engaging in annual reviews of medical coverage and making adjustments as needed.
Quotes:
- “A slack hand causes poverty, but the hand of the diligent makes rich.” – Proverbs 10:4
- “Your primary care doctor is there to keep you healthy.” – AB Ridgeway
- “Cheaper is not always better. You want to have an honest conversation with your family about your coverage.” – AB Ridgeway
Episode Summary:
In this episode of “Financial Advisors Say the Darndest Things,” AB Ridgeway provides invaluable guidance on navigating medical open enrollment from a Christian perspective. By understanding key insurance terms, aligning coverage with family needs, and prioritizing preventative care, listeners can take proactive steps towards financial health and stewardship.
Keywords:
- Medical open enrollment
- Health insurance coverage
- Christian financial advisor
- Financial stewardship
- Preventative care services
- Insurance terms
- Wise financial management
- Proactive health management
- Family dynamics and insurance
- Financial well-being
Ready to take control of your financial health? Schedule a free consultation with A.B. Ridgeway Wealth Management today to receive personalized guidance aligned with Christian principles. Visit our website or call us at 337-414-3686. Don’t wait—empower yourself to make informed decisions about your financial future!
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About Financial Advisors Say The Darndest Things Podcast:
As Christians, we were taught to be good stewards over our tithing and giving to the less fortunate. But when it came to our personal finances and investing we were left clueless on what the Bible says. What does the Bible say about managing debt, leaving a legacy, investing, and planning for your retirement? Mr. Christian Finance answers these and many other questions because we want to teach you how to become rich and righteous!
Meet A.B. Ridgeway:
A.B. Ridgeway, MBA, CPWA®️ (info@abrwealthmanagement.com) is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.
*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.
