It’s Almost Open Season: Why You Should Expect Health Care Premiums To Increase In 2022

For many workers, it’s open enrollment season, when you can update your health care coverage choices and benefits through your workplace. (Photo: National Cancer Institute/Unsplash)

We’re coming up on open enrollment season at most workplaces, which means you’ll soon have the opportunity to work with your employer to update your health care coverage choices for 2022.

(Not to be confused with Open Enrollment for Medicare participants, which takes place October 15 through December 7. We’ll talk about Medicare Open Enrollment in another blog post).

If you’re still working and covered by your employer’s medical plan, keep an eye out for materials from your employer asking you to renew or make changes to your health insurance and other employee benefits for 2022.

In some workplaces, that may extend to vision or dental coverage, disability or life insurance, and perhaps even pet insurance.

This is your chance to change coverage and tailor your benefits to fit your needs. Not sure where to start? Check out this guide to picking the best health package at work from TheMuse.

Your coverage may cost you a bit more than last year. Health care costs tend to rise faster than other consumer expenses.

Many employees are shocked to learn how much their health benefits really cost, as employers traditionally pick up the biggest portion of the costs (usually about 80% of the total) and employees pay only a relatively small share.

“Large employers expect health care expenses to increase 6% in 2022, for a total of about $16,300 per employee (including contributions from both the employee and employer), according to the Business Group on Health’s annual survey,” explains Rivan Stinson for Kiplinger.

The Takeaway: Clocking in at over $1,300 per month on average, with additional out-of-pocket costs added on top, health care insurance is one of your most valuable on-the-job perks and adds thousands of dollars to your total compensation package. Make sure to make the most of your benefits package during this open season by picking the best plan and options for you.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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