Mike Causey

Health Premiums: Save A Bundle

Health premiums got you worried? Welcome to the club. But Senior Correspondent Mike Causey says there is a way to save as much as $1,500 next year if you do a l...

Federal News Network Staff

November 12, 2008 4:00 am

3 min read

Health insurance premiums for some of the most popular health plans are going up next year. In some case, a lot!

For some feds and retirees, especially those who have done their homework and like their plans, the premium increases are not a big deal. They should stick with their current plan.

But for a lot of employees, failure to check out the competition during the current benefits open season (which started Monday and ends Dec. 8th) is a mistake. You might as well take $1,500 in cash and toss it out the window. Because you will be paying more than you need to.

So how do you know which health plan is right for you? A good start is by listening to our Your Turn radio show today. It’s on at 10 a.m. EST. Our guest today is Walton Francis. He’s editor of CHECKBOOK’s Guide to Health Plans which is the bible for folks in the giant Federal Health Benefits Program.

The FEHBP is considered the best in the nation. Maybe the world. It is cradle to grave (covering unborn and newborn children as well as 100 year old retirees and their spouses. And in some cases their grandchildren.)

Uncle Sam pays about 70 cents of the premium dollar. And nobody can be turned down because of age, health or pre-existing medical conditions. And there is a wide variety of choices. You can pick a nationwide fee-for-service plan that lets you pick your own doctors, hospitals, etc. Or you can go with a health maintenance organization. Premiums are lower in many HMOs. They stress preventive/managed care. The point is there are a lot of choices.

All of the plans, Francis says, are good. But some cost too much. The premiums you will pay next year, if you pick the wrong plan for you, are too much considering what you will get back.

During the open season we’ll have a series of columns listing the “best buys” for singles, for couples, for families with a couple (or dozens) of kids. We’ll also give you a list, with the help of Walt Francis, of plans that are good for people with special needs, and for retirees with and without Medicare.

The sad fact is that with all the time and attention spent on the open season, with all the expensive help the government provides, only about 6 percent of eligibles switch plans each year. That means most people, and especially retirees, stay with the same plan year-after-year. It may have been a good deal for you in 1986, or in 2008, but it may not be the best plan for 2009.

Walt Francis will be with us today to answer questions. He’ll also be on Your Turn Nov. 19th and Nov. 26th. Again, the time is 10 am. EST (9 a.m, Central and so on). Listen if you can.

You can hear us live at www.federalnewsradio.com anywhere in the world. In the DC area we are also on 50,000 watt station WFED at AM 1500. Call in if you have a question. Our local number is 202-237-1037 or toll-free at 1-866-468-1050.

Or you can e-mail your questions to me at: mcausey@federalnewsradio.com

Listen up and save a bundle.

Nearly Useless Factoid

According to the International Dairy Foods Association’s “Milestones of Milk History in the U.S.” (pdf), cows first arrived in the colonies for Jamestown colony in 1611. The next date noted is 1624 when cows reached Plymouth colony. That’s a long time to go being the only cows on the continent. I wonder if they got lonely.