I am blessed to be a federal employee which allows me access to some great, lower cost, health insurance plans. These plans typically have lower premiums for the employee portion and there is a VAST selection of plans.
It's easy to get analysis paralysis or just choose the most common one, which is what I have found to be true for many of my coworkers throughout the years.
I'm a giant, high functioning anxious nerd, so... i make a spreadsheet.
Yes you heard it here first.
I make a spreadsheet every year of the plans I'm considering and then ask some hard questions and make sometimes hard decisions.
I'll take you through my process to help you get the most "bang for your buck" from your FEHB or other insurance plan.
Easy Steps:
Step 1: find out your eligibility
Step 2: who needs coverage? (self, self plus spouse, self and family?)
Do not always assume that self and family is more expensive than self plus spouse, you'd be surprised!
Step 3: Do you want to keep your current healthcare providers or are you comfortable changing if needed?
If you can't change, find out which insurance carriers they work with (BCBS, United, Aetana, Cigna, etc).
Ok get ready....
Harder Steps:
Step 4: Predict/Forecast this year's health expenses
I know you are thinking i'm smoking something. but Z, I'm not a fortune teller!
I get it - Nobody has a crystal ball, but knowing you and your family's habits and medical history - how do you expect to USE your health insurance.
For example: one physical per person, 2 sicks visits per child, lab draws, rx medications, 2 dental cleanings per person, one vision exam per person, etc.
Step 5: What is your budget?
How much premium can you afford?
How much of a deductible can you pay (this is the cost that is paid out of pocket before insurance "kicks in"
What out of pocket maximum are you comfortable with?
All of the above will be determined by your financial situation and comfort level with risk tolerance.
Remember insurance is a tool used to lower your risk. If you are very affluent, you may be able to self-insurance and decline health coverage.
Step 6: Determine what you would rather pay more for:
Unfortunately, with health care - you'll be paying on the front end or the back end. This is really a personal preference on what and when you would like to pay.
Some things to ponder::
Higher premium or Higher deductible?
Higher copays or higher premiums?
More lab coverage or more medication coverage?
better preventative care or better hospital coverage?
Step 7: Consider making a chart with the abov information with your narrowed down plans
Step 8: Make a decision and elect it in an accurate and timely manner.
Try not to wait until the last minute to make your elections in case there is an error.
if you have family members, make sure they are being covered too!
If you are still really overwhelmed by this whole process, I offer one on one consultations and coaching in helping you choose the best product for your family. I do not earn a commission from any plans, so the cost is only for my opinion.
As a disclaimer, I am not a legal professional so all advise is that solely of my own opinion and should not be taken as legal or financial / investing advice.