Autumn is a season of change, and as we watch the leaves transition into vibrant shades of red and orange, we too should think about beneficial changes in our lives—especially when it comes to health insurance. With many companies launching their open enrollment periods during the fall, now is the ideal time to reassess your health insurance options and their tax implications.
The Open Enrollment Window:
Open enrollment is that magical yet finite window of time when you can modify your health insurance coverage. Miss it, and you’re locked into your current plan for another year. This period usually occurs in the fall, so mark your calendars, set reminders, and maybe even tie a string around your finger—whatever it takes not to forget.
Health Insurance and Tax Synergy:
The bond between your health insurance and taxes may not be as famous as peanut butter and jelly, but it’s just as crucial. Certain aspects of your health insurance can influence your tax credits or deductions. For example, if you have a high-deductible plan and contribute to a Health Savings Account (HSA), those contributions are tax-deductible. Neat, right?
The Importance of Reassessment:
You’re not the same person you were last year, and your health needs likely aren’t either. Maybe you’ve taken up skydiving, or perhaps you’re expecting a new addition to the family. Your current plan might not serve these new situations optimally, so make adjustments as necessary.
What Changes to Consider:
- Higher Deductibles for Lower Premiums: If you’re in good health and willing to pay a higher deductible in case of emergency, you could lower your monthly premiums.
- Supplemental Coverage: Whether it’s dental, vision, or mental health, you might benefit from adding specialized coverage to your plan.
- HSA Contributions: If you haven’t been maximizing your HSA contributions, open enrollment is the time to change that and seize those tax deductions.
Expert Advice is Your Best Ally:
Even with all this information, the best action you can take might seem unlikely, but it’s setting aside time with me or my team. Let’s face it, we’ve got a relationship and we can use the “big picture” financial goals and costs to ensure you’ll get tailored advice to yield tailored benefits, maximizing your health coverage while optimizing your tax situation.
Your healthcare options are not just a chore to tick off your fall to-do list; this is a strategic moment to improve both your health and your tax situation. As you ponder which cozy sweater to wear or which ball game to watch Saturday, give equal thought to your health insurance choices.
All the best,