Open enrollment is an important time of year when you have the opportunity to review, adjust, and select the benefits that will support your health and financial well-being in the coming year. While it might seem overwhelming, being prepared can help you make smart, informed decisions that align with your current needs and future goals. Here’s what you need to know and do during the open benefits enrollment period.
1. Understand the Open Enrollment Period
Open enrollment is your annual window to make changes to your benefits. Typically, you cannot make changes outside this period unless you experience a qualifying life event such as getting married, having a child, or losing other health coverage.
What to do:
- Mark the dates on your calendar. Missing the deadline could lock you into your current benefits until the next year.
- Make time to review the benefits options available so you don’t make last-minute decisions under pressure.
2. Review Your Current Benefits
Before jumping into new choices, take a step back to look at your current benefits package. Ask yourself if your health plan, retirement contributions, or other benefits met your needs this year.
What to do:
- Identify gaps in your coverage. Did your current health plan cover all your medical needs, or did you pay more out-of-pocket than expected?
- Look at the cost of premiums, deductibles, and copays to see if you need to switch to a different plan that offers better value for your needs.
3. Assess Your Anticipated Needs for the Upcoming Year
The right plan for you can change based on what’s happening in your life. Perhaps you’re planning for surgery, expecting a baby, or have aging parents that may require additional care. Each of these scenarios can impact which benefits will be most useful.
What to do:
- Make a list of upcoming medical needs (e.g., procedures, prescriptions) and compare different plan options to see which offers the best coverage.
- If you anticipate needing more medical care, a plan with lower deductibles and broader coverage may save you money in the long run.
4. Explore New Plan Options and Changes
Employers often update their benefits packages, adding new plans or making changes to existing ones. Don’t assume the coverage you had this year will be the same next year.
What to do:
- Compare plans side by side to see if switching can save you money or provide better coverage. Take into account not only the premiums but also the overall costs, including copays, deductibles, and prescription drug coverage.
- Check if your preferred doctors and medical facilities are still in-network to avoid higher out-of-pocket expenses.
5. Take Advantage of Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
These tax-advantaged accounts can help you save money on healthcare and dependent care costs. Contributions to these accounts are pre-tax, which can reduce your taxable income and lead to savings.
What to do:
- Maximize contributions to your HSA if you are enrolled in a high-deductible health plan (HDHP). Funds in an HSA roll over year to year, allowing you to build a long-term savings cushion for healthcare costs.
- If you choose an FSA, make sure to estimate your upcoming medical or dependent care expenses accurately since most FSAs have a “use it or lose it” rule at the end of the year.
6. Check for New Benefits or Enhancements
Beyond health and retirement benefits, many employers are offering additional perks such as mental health services, legal support, wellness programs, and more.
What to do:
- Look for added perks like telemedicine services, wellness programs, or financial counseling. These offerings can provide real value without additional costs.
- Some employers also offer commuter benefits, student loan repayment assistance, or enhanced family leave policies.
7. Review and Adjust Your Retirement Contributions
If your employer offers a 401(k) or 403(b) plan, open enrollment is a good time to review your retirement contributions and adjust them if necessary. Ensure you’re taking full advantage of any employer matching contributions, which is essentially free money.
What to do:
- Increase contributions if your financial situation allows, especially if you aren’t currently maxing out the employer match.
- Review your investment options and consider rebalancing your portfolio to match your long-term financial goals.
8. Evaluate Life and Disability Insurance Coverage
If you have dependents or anyone relying on your income, life and disability insurance can be critical in ensuring financial security if something happens to you.
What to do:
- Check your life insurance coverage and consider increasing it if your family has grown or your financial responsibilities have increased.
- Review any short-term or long-term disability insurance options provided by your employer, which can help cover a portion of your income if you’re unable to work due to illness or injury.
9. Coordinate Benefits with Your Spouse
If you and your spouse both have access to benefits through your respective employers, open enrollment is the time to evaluate both options and decide which one works best for your family. Sometimes one employer’s benefits package may offer better value for family coverage.
What to do:
- Compare the cost and coverage of both employer plans. For some, it may make sense to cover the whole family under one plan, while others may find it’s more cost-effective to split coverage between the two.
10. Plan for the Future – Don’t Just Set It and Forget It
Your benefits are a crucial part of your overall financial and health strategy. By taking the time to review and make adjustments each year, you’re making sure that your plan is aligned with your evolving needs.
What to do:
- Stay engaged throughout the year. Track how your benefits are working for you and your family. Are there areas where you could have made a better choice? Use this knowledge to fine-tune your decisions during next year’s open enrollment.
Final Thoughts: Make Open Enrollment Count
Open enrollment isn’t just a box to check—it’s your chance to take control of your benefits and ensure you’re getting the most value. By following these steps and making informed decisions, you can set yourself up for success in the upcoming year. Be proactive, ask questions if you’re unsure about your options, and make the most of this opportunity to support your health, wealth, and overall well-being.
