Making the Most of Your Year-End Health Benefits: A Guide to Maximizing Value

As the year winds down, so does the opportunity to use many of your health benefits. Whether it’s covering routine checkups, filling prescriptions, or addressing elective treatments, year-end planning can help you avoid losing out on valuable health coverage. Here’s a comprehensive guide to using your health benefits before they expire, so you can head into the new year with optimized wellness and peace of mind.

1. Understanding Health Benefits with Expiration Dates

Most health insurance plans operate on a calendar year, meaning that benefits reset on January 1. Some of these benefits include:

• Flexible Spending Accounts (FSAs): If you have an FSA, it’s important to use the funds before the deadline, as most FSA funds don’t roll over. Depending on your employer’s plan, a small portion of funds may carry over to the new year, but it’s often capped, usually around $500.
• Annual Deductibles: Once you’ve met your annual deductible, many of your services might be partially or fully covered by insurance. Using these benefits before they reset can significantly reduce your out-of-pocket expenses.
• Dental and Vision Benefits: Some dental and vision insurance plans cover routine exams or offer allowances for glasses, but if not used by year-end, these benefits may expire.

These are just a few examples, but reviewing your specific plan can reveal opportunities to save on health-related expenses.

2. Steps to Maximize Your Year-End Health Benefits

Maximizing your benefits starts with understanding your plan and prioritizing health needs. Here’s how to get started:

Review Your Current Health Plan

The first step is to review the details of your health insurance policy. You can often do this online through your insurer’s portal or by contacting customer service. Identify:

• Your deductible status and whether you’ve met it for the year.
• Any co-pays or co-insurance percentages.
• Your FSA balance or other health account funds, if applicable.

This helps you understand what’s left to cover and can guide decisions on medical appointments and treatments.

Schedule Routine and Preventive Care Appointments

Most health plans offer free or low-cost preventive care, including:

• Annual physicals and wellness visits
• Vaccinations and flu shots
• Screenings for blood pressure, cholesterol, diabetes, and certain cancers

Preventive care helps catch health issues early, often saving you on higher costs down the line. By scheduling these appointments before year-end, you ensure they’re covered, and you’ll have a record of your health status going into the next year.

Use Any Remaining FSA or HSA Funds

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are designed to cover a range of health expenses, from doctor’s visits to eligible medical supplies. Here are some ways to use remaining funds effectively:

• Purchase eligible over-the-counter supplies, including first-aid items, thermometers, or even cold medications.
• Upgrade vision care by getting prescription glasses or contact lenses, even if you don’t have an immediate need.
• Consider health-related items like foot orthotics, hearing aids, or even baby monitors if you have a growing family.

Spending down these funds responsibly can help you avoid the risk of losing unused amounts. However, note that HSAs don’t expire, so you can carry those funds into the next year.

Consider Elective Procedures

If you’ve been planning elective treatments, like physical therapy, dermatology procedures, or even corrective dental work, using your benefits before the deductible resets can lower your costs. Many people don’t realize that certain cosmetic procedures, such as those for dermatological issues, may be partially covered by insurance. If your deductible is already met, taking advantage of this before it resets can bring you savings.

Review and Refill Prescriptions

The end of the year is also a good time to stock up on necessary prescriptions, especially if you’ve already met your deductible. Consider:

• Filling a 90-day supply of necessary medications, if your plan allows.
• Switching to generic options, if possible, to save money and extend your coverage.

Some insurance companies offer incentives to switch to mail-order pharmacies for ongoing prescriptions, so check if that’s an option for added convenience and savings.

3. Key Health Areas to Focus On

To get the most out of your benefits, prioritize key areas of health. Here are some suggestions:

• Dental Care: If you have dental insurance, this could include cleanings, fillings, or even orthodontic consultations if you’re considering braces for a child. Many plans have coverage for a specific number of cleanings or exams per year.
• Vision: If you wear glasses or contacts, now’s a good time to get an eye exam or new lenses. Some vision plans offer discounts on frames or specific types of lenses, so you can refresh your eyewear affordably.
• Mental Health: Many plans cover mental health services, including counseling and therapy sessions, which can be invaluable as you manage end-of-year stressors.

4. Consider Future Needs and Plan Ahead

Thinking ahead can save time and money in the new year:

• Schedule Necessary Follow-Ups: If any treatments or tests need follow-up visits, plan them before the year ends. This allows you to get further tests or consultations while you still benefit from having met the deductible.
• Plan for the Coming Year: During your benefits review, make a note of benefits that weren’t fully used this year and might be helpful in the future. Also, consider if you’d like to make changes during open enrollment for the following year to better align your plan with your needs.

5. Tips for Staying Organized

• Set Reminders: Use digital tools or set reminders to alert you when appointments need scheduling or FSAs require use.
• Keep Records of Health Expenses: Tracking your expenses helps you plan and may be useful when comparing plans during the next open enrollment period.
• Speak with a Benefits Advisor: Your HR department or benefits administrator can provide guidance specific to your employer’s plan, helping you navigate any uncertainties.

Conclusion

Taking full advantage of your health benefits before the end of the year is a great way to save money, address health concerns, and start the new year with peace of mind. From preventive care to elective treatments, a little planning can ensure you’re making the most of what your health plan offers. By following these steps and staying proactive, you can maximize your benefits and set yourself up for a healthy, financially sound new year.