Open enrollment is an annual opportunity to review and adjust healthcare and benefits selections to align with individual and family needs. Whether you are choosing a health insurance plan, evaluating retirement contributions, or selecting additional benefits, preparation can help you make more beneficial decisions. Understanding your available options, assessing current coverage, and anticipating future needs are key steps in navigating open enrollment effectively. Here are some of the top healthcare open enrollment tips to review before you make your choices.
Reviewing Current Benefits
Before making changes, reviewing existing benefits is a helpful first step. Evaluating how well current healthcare coverage met past needs can provide insight into what adjustments might be necessary. Some considerations include:
- Medical Expenses: Reviewing out-of-pocket costs such as deductibles, copayments, and premiums can help determine if a different plan structure may be more suitable.
- Provider Networks: Checking whether preferred doctors and healthcare facilities are still covered under the current plan can prevent unexpected costs.
- Prescription Coverage: Assessing how prescription medications are covered under different plans can help avoid increased expenses.
Comparing Health Plan Options
Many employers and marketplace exchanges offer multiple health plan options, each with distinct costs and benefits. Common types include:
- Health Maintenance Organization (HMO): Typically requires choosing a primary care physician (PCP) and getting referrals for specialists, which may potentially lead to lower premiums and out-of-pocket costs.
- Preferred Provider Organization (PPO): Offers greater flexibility in choosing healthcare providers and specialists without referrals but may have higher premiums.
- High-Deductible Health Plan (HDHP): Features lower monthly premiums with higher deductibles, often paired with a Health Savings Account (HSA) for tax-advantaged savings on medical expenses.
- Exclusive Provider Organization (EPO): A hybrid plan that limits coverage to in-network providers but does not require referrals for specialists.
Comparing deductibles, out-of-pocket limits, premium costs, and network restrictions can
help in selecting a plan that balances affordability and coverage.
Evaluating Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
For those enrolled in an HDHP, an HSA[1] allows tax-free contributions for medical expenses. Unlike FSAs[2], HSAs allow funds to roll over year after year. FSAs, offered through many employers, provide tax savings for qualified medical expenses but typically require funds to be spent within the plan year.
- HSA Benefits: Contributions reduce taxable income, funds grow tax-free, and withdrawals for qualified expenses are not taxed.
- FSA Considerations: Reviewing the balance of an FSA and planning expenses before the end of the year can help avoid losing unused funds.
Assessing Additional Benefits
Open enrollment is also an opportunity to review non-medical benefits that contribute to overall financial planning. Some common options include:
- Dental and Vision Coverage: Regular dental and vision care may not be included in standard medical plans but can be added separately.
- Life Insurance: Employer-sponsored life insurance policies can supplement individual coverage.
- Disability Insurance: Short-term and long-term disability coverage can provide financial support in case of illness or injury.
- Retirement Contributions: Reviewing 401(k) or similar retirement plans and adjusting contribution levels can help align savings with long-term financial goals.
Checking for Wellness Programs and Incentives
Some employers offer wellness incentives, like discounts on premiums for completing health assessments or participating in fitness programs. Reviewing these options may provide additional benefits beyond standard healthcare coverage.
Planning for the Enrollment Deadline
Missing the open enrollment deadline can result in being locked into current benefits for another year unless a qualifying life event happens. Marking key dates and gathering necessary documents, such as dependent information and previous medical expense records, can help streamline the enrollment process.
Healthcare Open Enrollment Tips to Help Make Informed Decisions
Open enrollment presents an opportunity to reassess your healthcare and benefits choices based on changing needs and financial considerations. By reviewing your current coverage, comparing available plans, evaluating supplemental benefits, and planning for the future, you can make the selections that align with your health and financial priorities.
Sources:
- [1] https://www.nerdwallet.com/article/health/what-is-an-hsa
- [2] https://www.nerdwallet.com/article/health/employer-offers-hsa-fsa-whats-difference
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.