Financial Friday Newsletter
In a meeting last week, my boss reminded us that open enrollment is around the corner. What does that mean, and what steps do I need to take to ensure that I don’t miss anything important?
Open enrollment is the designated period each year when you can enroll in or change your health insurance plan. Typically occurring in the fall, this window allows you to adjust your coverage based on your changing needs. Consider these steps when considering your options.
Review your current benefits: Start by evaluating your existing health insurance plan. Consider what worked well over the past year, and what didn’t. Did you have adequate coverage for your medical needs? Were your out-of-office costs manageable?
Assess your and your family’s needs: Consider any changes affecting your health coverage needs. Have you or your family members developed new medical conditions? Are you planning on having a baby? Such life-changing events can significantly influence the type of coverager you should opt for.
Compare options: Many employers offer a couple of different health insurance options. Compare each plan’s benefits, premiums, deductibles, and out-of-pocket maximums. Remember to check the network of doctors and hospitals to ensure your preferred providers are covered.
Check out your other options: Health insurance isn’t the only benefit to review. Look at dental and vision insurance, life insurance, disability coverage and any wellness programs your employer offers. These can provide significant support and should be factored into your decision-making process.
Utilize tools like FSAs or HSAs: Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are tax-advantaged accounts that can help you save money on medical expenses. FSAs must be used wtihin the plan year, while HSAs can roll over year to year and even be invested for growth. Determine how much you need for the upcoming year and allocate funds accordingly.
Be sure to attend informational sessions: Many employers offer informational sessions during open enrollment. Take advantage of these resources to get detailed information about your options and the perks of one plan versus another. Ask any questions you may have.
Watch for deadlines: You must complete your open enrollment by the deadline to avoid a coverage lapse or possibly getting stuck with a plan that doesn’t meet your needs. Mark the dates on your calendar and give yourself plenty of time to review your options and make informed decisions.
Watch for deadlines: You must complete your open enrollment by the deadline to avoid a coverage lapse or possibly getting stuck with a plan that doesn’t meet your needs. Mark the dates on your calendar and give yourself plenty of time to review your options and make informed decisions.
