Healthcare budgeting made easy
Whether your health plan year starts in January, July, or somewhere in between, the New Year is a good time for a status review of your healthcare budget. Take time to compare what you've spent to what you expected to spend by now, and make sure you've allowed for unanticipated expenses down the road.
Why plan?
What's that you say? "What healthcare budget?" If you don't budget for healthcare, let's start with why you need to.
Healthcare costs are soaring – that's old news. In recent years, they've far outstripped the growth of many people's income. In November, the Sacramento Business Journal reported 39 percent of Californians are having trouble paying their medical bills, and 29 percent have managed to cover healthcare costs only by cutting into their budgets for food, housing, and utilities. The reasons are many, and Americans have a lot of potential solutions on the table – but one consideration is that we simply must pay attention to what we spend and how we spend it.
The fact is, your health is just as important as having a place to live and food in the refrigerator. You need to consider healthcare costs as part of your "necessities" budget, right up there with housing and groceries.
The first step to reining in any out-of-control expense is to examine where it's going now. How are you spending your healthcare dollars? What's predictable? What's essential? Where can you find savings?
Sound like a daunting task? Humana's made it easier for you. Check out these resources to get started.
Planning with MyHumana
You have immediate, 24-hour access to your claims, plan benefits, and a list of providers in your area on MyHumana, your secure Website on Humana.com. If you haven't registered, go to Humana.com and click on "Register for MyHumana" to get started.
In addition, MyHumana has planning resources you can use anytime – at the beginning of a plan year to budget and decide on a health plan, and later, to see how your budget is doing. To find what you need to know quickly and easily, look in these three sections on the "Claims & Spending" tab.
1. Planning Tools – project your expenses
Select Planning Tools and click on Estimate My Healthcare Costs. During open enrollment, you used this tool to project your family's annual healthcare expenses and decide on your plan details, as well as how much to put in a spending account. Now, the Estimate tool can show you the numbers of doctor visits, prescriptions, and other expenses applied to your deductible so far. If you enter the number of times you expect to use each service between now and the end of your plan year, the Estimate tool will calculate what you've spent already, what's left of your deductible, and how much more you can expect to pay out of pocket.
2. Spending Accounts – calculate your funds
If you have a Health Savings Account (HSA), a Flexible Spending Account (FSA), or a limited FSA, click on Spending Accounts to check your balance. You'll go to a page that shows how much you've contributed to your account, how much your employer contributed, how much you've spent from your account, and what's left.
3. SmartSummary – evaluate your costs
Your SmartSummary is your personalized, detailed health and wellness update. We send it to you four times a year, by e-mail or regular mail, depending on your preference. There's a separate SmartSummary for each person covered by your health plan. Members who are 18 or older must either access their own SmartSummary or authorize you to view them.
When you click on SmartSummary, MyHumana links you to all your SmartSummaries for the past two years – the current one and up to eight more, depending on how long you've had Humana coverage. Your SmartSummary archive is valuable for several reasons. For example, you can print the pages that list all your prescriptions and take them to your next doctor visit.
For planning purposes, look on page 2 under "Numbers to Watch." You'll find the totals you've spent on medical and prescription costs during the previous three-month period, including excluded costs that aren't covered under your plan. There's also a breakdown that shows you how much you've spent, what Humana has spent, and how much you saved with the network discounts we've negotiated with your healthcare providers.
Review your claims for the past year – going back four SmartSummaries – for patterns you can change to reduce your costs. For example:
- It really is true that exercise and a heart-healthy diet can lower your cholesterol? While you should never stop prescribed medicine without clearance from your doctor, you may be able to lower your numbers so you can get that clearance on your next visit – and oatmeal costs less than cholesterol medication! Look in MyHumana under Health & Wellness for ways to improve your diet.
- You or your family members may have frequent trips to the doctor, urgent care center, or emergency room for concerns that turned out to be less worrisome than you thought. If that's the case, post the number for Humana First® – 1-800-622-9529 – close to your phone. When you have a pressing health-related question, you can call and talk with a nurse, who'll ask the right questions to help you decide whether you really need medical attention. HumanaFirst is available every day, anytime, day or night, and it won't cost you a thing.
What else?
Talk with your healthcare provider about treatment you may need in the coming months. If you're planning surgery, estimate the cost using Humana's MyChoice ToolsSM. If you have a chronic condition – for example, COPD or diabetes – you may qualify for a Personal Nurse® who can help you manage your condition. If you're having a baby, a HumanaBeginnings® nurse can offer information and support during your pregnancy. Those are just examples of the ways we can help you plan for and manage your expenses.
Humana's resources aren't intended to replace or interfere with medical care – they're simply additional support for you. What they will do is help you take charge of your health, not just your budget. You'll learn to work as a partner with your healthcare provider and make the best decisions for yourself, your family, and all aspects of your life.
With the information you've found on MyHumana, you can create a healthcare budget for yourself and your family. Go to familyhealthbudget.com and complete the questionnaire pages there. The Family Health Budget will give you an estimate of your annual spending, and you'll find specific ways you can take control of your healthcare costs.
Bottom line:
Pulling together your budget isn't as complicated as you may think, and it will pay off. After you've identified your healthcare needs and made a plan to take care of them, you'll breathe easier. Celebrate 2009 by reviewing your healthcare budget and gaining some control over your expenses!
For more information:
ChangeNow4Health.com – Getting Started Site
Family Health Budget – Helping you budget for healthcare costs
