Health Care Cost Expected to Rise

The average employee's health care costs, including premiums and out-of-pocket expenses, will increase 8.9% in 2009. That's well above the rate of inflation and average salary increases.

For that reason, it's more important than ever to scrutinize your employer's health care options during open enrollment season. Don't assume the plan you used last year is still the best choice, because the terms may have changed.

Unfortunately, some health insurance plans are quite complicated. Here are some ways to save money:

•Understand the difference between co-insurance and co-payments. Many employees are accustomed to making co-payments of $5 to $25 for everything from prescription drugs to doctor's visits. More employers are replacing co-payments with co-insurance in an effort to control costs

•Sign up for mail-order prescriptions. Most plans offer mail-order delivery of prescription drugs, and these programs can save you a lot of money. You'll receive a larger supply — typically 90 days — you'll save money on co-payments and may get discount.

•Contribute to a health care flexible spending account or health savings account. Most employers offer flex accounts, which let you use pretax dollars to pay out-of-pocket medical and dental costs. These accounts can help reduce the cost of co-payments, co-insurance and deductibles.

Hopefully these three tips will help you weather the storm of the next health insurance rate increase.