Cash and Debt Management

Saving Money on Company Benefits

If you and your family visit doctors for annual check-ups, routine examinations, or routine medical care, choose health care options that cover preventive care and wellness visits. For example, consider choosing medical plan options that offer in-network services like a Preferred Provider Organization (PPO) or Health Maintenance Organization (HMO). While your plan may also offer you the opportunity to go outside the network, in-network services usually cover either part or all of preventive care visits, and often have lower deductibles and coinsurance limits. This will help reduce your out-of-pocket costs.

If you’re married and eligible for medical coverage on your spouse’s plan, do a cost comparison of the plans available to you to determine which plan best meets your needs. Duplication of benefits is usually not worth the extra cost and really depends on how each company’s medical plan handles coordination of benefits.

If you decide to waive your medical plan coverage at work because you are covered under your spouse’s plan, and your company offers a flexible benefits program, your company may offer you a cash credit towards your other benefit options. You could even end up with extra cash in your pocket if you don’t use the credit on other benefits. Keep in mind that you may have to prove that you have medical coverage elsewhere before you can opt out of your company’s plan.

If your medical plan requires pre-certification, always remember to call your insurance company to have hospital admissions or surgical procedures pre-approved (as required)--except in emergency situations when you are usually able to call your plan within 48 hours after admission. If you don’t call, a portion of your medical expenses may not be covered. Make sure you review your medical plan’s requirements.

If you are pregnant, check with your employer to see if a pregnancy help program is offered. Staying healthy during pregnancy will pay off for both you and your baby well after delivery.

If your employer offers a dental plan, the cost of the annual premiums usually equals the cost of annual preventive care visits alone, assuming you visit your dentist twice a year. A good dental plan will cover the cost of preventive care services. So if you need any dental work in addition to basic preventive care, you’ll save money by being in the dental plan. If you have a choice of dental plan options, select the plan option which will most likely cover your needs. Don’t go for the more expensive plan if your dental needs are minimal.

If your employer offers a vision/hearing plan, make sure to read the fine print before you enroll. If the plan covers only new frames or lenses when you have a change in your prescription, but you like to change your frames more often than that, consider other options, such as health care flexible spending accounts if offered by your employer, or vision care plans that offer you discounts. You can also use a health care flexible spending account in conjunction with a discount vision care plan for added savings.

Some company plans offer a mail order drug program for individuals on maintenance or long-term medication. Buying prescriptions in large quantities, usually a 90-day supply, can provide you discounts over buying smaller amounts at your local pharmacy. Ask your doctor to write your prescription for a 90-day supply rather than for a 30-day supply with two refills. When using mail order services, your prescription will likely be filled with a generic drug unless your doctor specifically requests a name brand drug. If you don’t require maintenance drugs, always use a network pharmacy, if provided through your company’s medical plan, to receive a discount.

If your employer has daycare facilities, or has arrangements to offer you a discount at one or more daycare facilities, compare the cost and quality of care with other child or daycare providers in your area. Determine which facility provides your children with the best care at the most affordable price.

To help you save on the after-tax costs of health care and dependant daycare, your employer may offer a health care flexible spending account and a dependant daycare flexible spending account. The money that you deposit into these accounts on a pre-tax basis can be used to pay for non-reimbursed medical expenses, like your deductibles and coinsurance, or the expenses at the daycare center your child attends.

Be careful to estimate your future health care and/or dependant care costs accurately. You will lose money you deposit into the account if you don’t use it for health care or dependant care. So, if you feel comfortable estimating your additional out-of-pocket medical and daycare expenses, you should arrange to begin contributing or increase contributions to a flexible spending account. It means money in your pocket rather than in Uncle Sam’s!

Some companies have a matching gifts program. It’s a good way for you to possibly double your contributions to a charitable organization. For example, your employer may match your contribution dollar for dollar, up to a specified limit (usually no more than $10,000). Besides getting a tax-deduction for your own charitable dollars, you’re maximizing your overall gift to a worthwhile cause. Check with your local human resources representative at your company.

Your company may also offer other benefits that could help you save money. Ask your local human resources representative if your company has any of the following programs:

• Discounts on auto, home, and personal property insurance,
• Credit union,
• Car purchase discount program.
• Discounts on health club memberships.