Open enrollment season is the annual window when employees can enroll in or make changes to their workplace benefits. It typically runs from October to December, depending on your employer. With rising healthcare costs and evolving benefit options, preparing for open enrollment is more important than ever.
Here are three detailed and practical steps to take during open enrollment season to optimize your benefits and protect your financial well-being.
1. Review Your Current Benefits and Needs
Many employees make the mistake of automatically renewing their existing benefits without reassessing whether those plans still meet their needs. In fact, over 50% of workers default to their previous elections without reviewing updates or changes.
To make smarter choices, follow these steps:
- Assess your life changes: Did you get married, divorced, have a baby, or face a health diagnosis this year? These events can affect your coverage needs.
- Compare plans side by side: Use your HR portal’s comparison tool to look at costs, coverage, copays, and networks across available plans.
- Look at prescription drug coverage: If you’re managing a chronic condition or regularly take medications, ensure the plan you choose includes your prescriptions affordably.
- Evaluate dental and vision coverage: These benefits often change year to year. Check what’s included and whether your providers are still in-network.
Example:
If you’re planning to start a family soon, consider switching to a plan with better maternity coverage, even if it has a higher premium. The long-term savings on delivery and newborn care may outweigh the monthly cost.
2. Maximize Tax-Advantaged Accounts (HSA/FSA)
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) help you reduce your taxable income and pay for healthcare expenses more efficiently.
How to Decide:
- Use an HSA if you’re enrolled in a high-deductible health plan (HDHP). Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified expenses. Plus, unused funds roll over indefinitely.
- Use an FSA if you’re not eligible for an HSA. FSAs reduce your taxable income, and while they are generally “use it or lose it,” some plans offer a grace period or limited rollover.
Contribution Tips:
- Estimate medical expenses: Add up known costs such as doctor visits, medications, therapy, or upcoming surgeries.
- Avoid over-contributing: Especially to FSAs, where you may lose unused funds.
- Take advantage of employer contributions: If your employer adds money to your HSA, that’s free money you can save or invest.
Example:
If you know you’ll need a new pair of glasses and regular physical therapy, allocate enough FSA funds to cover those costs tax-free instead of paying out of pocket.
3. Take Advantage of Wellness Incentives
Wellness programs have become more comprehensive and financially rewarding. They often include:
- Premium discounts for completing a health risk assessment
- Cash bonuses or gift cards for meeting activity goals
- Gym membership reimbursements
- Free health coaching or telehealth therapy sessions
How to Get Started:
- Log into your HR benefits portal to find wellness options.
- Join challenges or track your steps with integrated apps.
- Submit verification for completed activities like biometric screenings or smoking cessation.
Example:
Completing a biometric screening might earn you a $150 credit on your health insurance premium for the year. That’s money back in your pocket for prioritizing your health.
FAQs About Open Enrollment Season
When is open enrollment season?
It varies by employer, but most deadlines fall between mid-October and mid-December. Check your company’s HR portal or emails for exact dates.
Can I change my benefits outside of open enrollment season?
Only if you have a qualifying life event, like marriage, divorce, birth/adoption of a child, or a spouse losing coverage.
Is telehealth usually included in employer health plans?
Yes, most plans now include telehealth or virtual visits, often at lower costs than in-person care.
What is included in a typical open enrollment checklist?
A checklist should cover reviewing health, dental, and vision plans; evaluating HSA or FSA options; confirming dependent coverage; and enrolling in wellness or voluntary benefits.
How can I use HSA or FSA funds effectively?
Use these funds for eligible expenses like copays, prescriptions, medical devices, or dental work. Check IRS guidelines and plan rules for allowable expenses.
Are employee benefits guides provided by all companies?
Most employers distribute a benefits guide during open enrollment. If you haven’t received one, request it from HR—it outlines your coverage options and costs.
Do I have to enroll every year if I’m not making changes?
Some benefits may auto-renew, but others like FSAs require annual re-enrollment. Always review your benefits guide or portal to confirm.
