Meridian Resources

Health Insurance plans fall into several main categories described below.

Usually paid for with PRE­-TAX dollars:

• High-Deductible Health Plan (HDHP)
  • For 2026, the minimum deductible is $1,700 for an individual or $3,400 for a family. Out of pocket maximums (including deductibles, coinsurance, or copays) must be limited to $8,500 for an individual and $17,100 in network for a family.
  • Monthly premiums are usually very low, so ideal if you are not going to the doctor frequently or if you feel you will hit your deductible quickly.
• Health Savings Account (HSA),  a tax-advantaged account used for paying qualified medical expenses in conjunction with a HDHP.
  • The account is owned by the individual and the funds roll over year to year, (unlike an FSA account which is “use it or lose it”).
  • Maximum contribution amount for 2026 for self-only coverage is $4,400 and for family coverage $8,750.
  • Catch-up contributions:  Individuals aged 55 or older can contribute an additional $1,100
• PPO – Preferred Provider Organization
  • Contracts with several doctors, specialists, and hospitals, which provide broader access to providers.
  • No requirement to consult with primary care provider before seeing a specialist.
  • In network means you pay less, out of network you incur an additional cost
• HMO – Health Maintenance Organization
  • Group of doctors and hospitals that provide services for a copay
  • Tend to be more affordable
  • Only cover in-network services and will not pay for services from out-of-network providers
  • Requires physician to provide “access” to specialist care
• Flexible Spending Accounts (FSA)
  • Similar to an HSA, you can save pre-tax dollars in an account to pay for qualified medical expenses.
  • Usually used with HMOs or PPOs
  • Maximum contribution amount for 2026 is $3,400 (lower than an HSA)
  • Unlike an HSA, you may only roll over $680 (2026) at the end of the year — “use it or lose it” – if you don’t spend the amount allocated you will lose all but the carryover.
  • If you leave your employer you don’t get to the take the account with you, unlike an HSA
  • Dependent Care FSA
    • Contribution limits up to $7,500 to cover costs of daycare, after school costs, summer day camps, or taking care of a disabled spouse or older relatives

Paid for with AFTER-TAX dollars

If you are self-employed, are not covered through work, or are bridging the gap between retirement and Medicare eligibility, the open enrollment period for obtaining coverage through the Health Insurance Marketplace is November 1^st through January 15^th. For coverage to start on January 1, you must enroll by December 15^th.

While you have to pay the premiums up front and are not receiving any additional employer coverage, it is worth noting that the premiums paid with after-tax dollars still can provide some tax savings.  Any medical expenses and premiums over 7.5% of income can be deducted if you itemize.  If you are self-employed, you can deduct these health insurance premiums on your 1040.

Medicare

If you are 65 or older and are already enrolled in Medicare open enrollment runs October 15 – December 7 which is the time to review your current plan to ensure it remains the best option.  Specifically, the enrollment period applies for Part C aka Advantage Plans and Part D (prescription drug coverage).  For example, the plan you were covered under in 2026 may not cover the same prescriptions, costs for medications may have changed, or a provider can opt in or out of a plan.

Also check out our additional resource on What You Need to Know About Medicare to Avoid Retirement Mistakes