Kiplinger\'s Personal Finance - 10.2019

12 KIPLINGER’S PERSONAL FINANCE^ 10/

AHEAD

six recessions. But the lead
times are long—21 months,
on average—and stocks have
gained an average of 22%
before the economy finally
rolled over.

What could go right. The posi-
tives that investors can
latch onto include a strong
labor market, healthy con-
sumer spending and a f lexi-
ble and accommodative
Federal Reserve. Market
weakness should prove
“limited and temporary,”
says Canaccord Genuity
strategist Tony Dwyer, who
sees the S&P 500 at the
3350 level by year-end 2020,
a nearly 18% gain from its
recent close (prices and re-
turns are as of August 15).
Don’t rush to put new
money in the market, says
Wells Fargo Investment
Institute strategist Darrell
Cronk. Better to wait for
higher conviction about
a market bottom. In the
meantime, focus your port-
folio on high-quality stocks
and bonds. Favor large-
company stocks over small-
cap issues, for example, and
investment-grade bonds
over high-yield debt.
Lessen the impact of
the trade war on your port-
folio with a tilt toward ser-
vice providers and away
from goods producers, say
Goldman Sachs strategists.
Think more MICROSOFT
(SYMBOL MSFT, $134) and less
Apple (AAPL, $202), for
instance. Dampen the
swings in your portfolio
overall with low-volatility
exchange-traded funds,
such as ISHARES EDGE MSCI
MIN VOL USA (USMV, $62). Find
good international low-vol
choices on page 28.

CHRONIC COSTS

ANOTHER PLUS FOR

HIGH-DEDUCTIBLE PLANS

New rules for plans with health savings

accounts could trim your out-of-pocket costs.

People with the named con-

ditions may now be able to

receive certain treatments

at no cost or at a lower cost,

depending on their insur-

ance plan or employer.

Reducing costs. The expanded

roster of preventive-care

benefits could make high-

deductible plans with HSAs

more cost-effective for

people with chronic con-

ditions. Among the items

that plans may cover are

statins for heart disease,

blood-pressure monitors

for hypertension, beta-

blockers for congestive

heart failure, insulin and

testing supplies for diabetes,

and SSRIs, such as Prozac,

for depression.

By labeling these items

preventive care, patients

who need them will gener-

ally not have to meet their

annual deductible before

benefits kick in. The recent

change permits insurers to

begin providing coverage

for the listed treatments

before the plan deductible

has been met. Because the

change was issued as guid-

ance, insurers are not re-

quired to adopt the new list

of preventive-care benefits

or pay for the items in full.

But many employers and

health insurance companies

are expected to incorporate

the changes into their 2020

plan offerings.

Helping people with

chronic conditions access

treatment generally im-

proves health over the long

term and reduces costs, says

David Speier, managing di-

rector of benefits accounts

at benefits consultant Willis

Towers Watson. High-

deductible health insurance

plans have become more

common in recent years.

If you enroll in a high-

deductible plan that makes

you eligible for an HSA,

you can use the account to

help manage the steep de-

ductible and to cover other

out-of-pocket health care

expenses. The accounts

offer a triple tax break:

Contributions aren’t taxed,

the money grows tax-

deferred, and funds can

be withdrawn tax-free for

eligible medical expenses

at any time.

As you choose your

health coverage during

open enrollment this fall,

find out what preventive-

care benefits a high-

deductible plan option is

offering. Before you make

your selection, consider

all the plans’ premiums,

deductibles, provider net-

works and other coverage

details. KAITLIN PITSKER

HIGH-DEDUCTIBLE HEALTH

insurance plans with health

savings accounts could

become more attractive

to people with chronic

illnesses. Until recently,

people who enrolled in high-

deductible plans had to pay

for the medications and ser-

vices used to manage their

conditions, such as diabetes

and heart disease, until they

met their plan’s annual de-

ductible (up to $1,350 for in-

dividual coverage or $2,

for family coverage in 2019)

before their insurer would

cover treatment.

This summer, in response

to an executive order from

the White House, the IRS

added 14 treatments and ser-

vices for a range of chronic

health conditions to the

list of items that insurers

may provide as preventive-

care benefits under high-

deductible plans with

health savings accounts. ISTOCKPHOTO.COM