Higher Costs of Dependant Health Coverage

Kiplinger's discusses employee options to reduce health inusrance costs for dependants.

The article advises that employees review their open enrollemnt packets with care.

"What you can do.
If your employer gives you several health-plan options, compare the out-of-pocket costs for the types of doctor visits and drugs you typically pay for as well as the premiums -- the plan with the lowest premium could actually cost you more, especially if you take expensive brand-name drugs that have no generic alternative (some employers have calculators on their intranet Web sites to help with the math). Also compare the bottom line -- your maximum out-of-pocket expenses. No matter how many medications you take or doctor visits you make, this is the most you will have to pay for the year. The ceiling is typically $2,000 to $5,000, says Sam Gibbs, senior vice-president of eHealthInsurance.com.

Also keep your ultimate liability in mind when calculating how much money to set aside in a flexible spending account for 2010. Because your FSA contributions avoid income and Social Security taxes, you can save 35% or more compared with spending after-tax money on these medical expenses."