Six Questions To Help You Make Open Enrollment Selections

Why should you pay attention to “open enrollment” season?

Most major employers in the metro Augusta area offer an open enrollment period – a window of time for you to select your benefits package for the coming year. Whether you’re an engineer, educator, nurse, physician, mechanic or most anyone, it’s easy to overlook this opportunity and simply maintain the status quo. However, that could prove to be a mistake.

If you are like most employees in the U.S., open enrollment may be the only opportunity you’ll have during the entire year to alter major benefits, such as health care plans, or elect to sign up for optional insurance, such as life and disability insurance.

This year, resolve to review your options with a fresh perspective. Consider the following questions:

Have you experienced a major life change? If so, reconsider your health insurance choices to accommodate your new situation. Did you welcome a new baby this year or send an older child off into the world on their own? Alternatively, you or your spouse may have experienced a job change. If so, a lower monthly premium with a higher deductible might be a good solution for you. Conversely, if you anticipate major health expenses in the coming year, you might decide to go with a more comprehensive health plan with a lower deductible.

Second, are your employer benefits better than those available to your spouse? A significantly high number of employees in the metro Augusta area (nearly one in 10, according to the Bureau of Labor Statistics) work in the health care industry, which generally offers better health care benefits than other types of industries.

Evaluate your options each and every year – especially if your spouse works for a health system – and include in you revaluation whether the professionals you currently work with are covered by your new plan. If they’re not, determine whether the cost savings are worth it, as well as whether you want to work with someone new. Making the right choices for your circumstances can result in better coverage than you have today, and potentially save you hundreds – or even thousands – of dollars a year.

Third, is a health savings account (HSA) worth considering with a high deductible health plan? You may be able to set up a health savings account that would allow you to pay for things like doctors’ co-pays or prescriptions with pre-tax dollars.

High deductible plans, as the name implies, require that you carry a higher deductible, which could be a sensible option –particularly for younger workers – to limit premium costs when major healthcare needs are not anticipated.

Fourth, a flexible spending account may also be worth it for you. While these are similar to HSA accounts, flexible spending accounts offer you an even broader ability to pay for things with pre-tax money. In some cases, this might even include childcare.

A word of caution – keep in mind that, unlike with HSAs, money left in a flexible spending account at the end of the year disappears.

Fifth, are there other benefits you should be contemplating? A lot of employers offer things like eye exams, legal assistance, dental coverage, or disability and life insurance. Carefully weigh these options to see whether they may be cost effective for you.

Finally, think about your “big picture” financial goals. When evaluating your open enrollment options, make sure you talk with your spouse and realign yourselves on key priorities for the coming year.