How to take advantage of open enrollment

Open enrollment is a time for you to see what benefits your company has to offer and reevaluate which ones you want to take advantage of.  Some employees simply sign up for the same insurance plans every year without taking the time to really analyze their options, while others pore over every plan detail before making their decision.  The difference in tactics between these two types of employees might come down to a few thousand dollars.  It’s important to pay attention to the different plans your company offers and how much of it they will cover.  While your salary is the most important monetary benefit you get from your job, don’t underestimate the value of the benefits available to you.  Here are some things to do and consider during open enrollment.

Attend your company’s open enrollment meeting

Some companies make this meeting mandatory, but even if yours doesn’t you should attend to refresh your memory on what they offer and to find out if there are any changes to the benefits you’re currently enrolled in.

Pay attention to how much your company covers   

When it comes to health insurance plans, do they cover a certain percentage of the cost no matter which plan you choose?  Do they cover the cost of a base plan and you cover the difference if you choose a higher level plan?  It’s important to understand how much they will pay vs. how much you will pay.

Compare your benefits to your spouse’s benefits

If you and/or your children were added to your spouse’s plan through their employer, would it cost your family more or less than if you put your spouse and/or your children on a plan offered through your employer? Compare and analyze the plan costs.

While your salary is the most important monetary benefit you get from your job, don’t underestimate the value of the benefits available to you. Click To Tweet

Analyze the total cost and consider how much healthcare you use

Don’t just pay attention to the health insurance premium. Look at the out of pocket maximum as well. It’s usually a tradeoff. High premium, low out of pocket costs and vice versa. Compare the total price when you add them together.  Also consider how much healthcare you use. If you’re in great health and rarely go to the doctor it might be worth paying a low premium and having less coverage. However, if you have a medical condition and see doctors and specialists regularly, the higher premium and better coverage may save you more money in the long run.

Consider enrolling in an FSA or HSA plan

If your company offers a Flex Spending Account or a Health Savings Account this is a great way to save pre-tax dollars that you can spend on medical expenses throughout the year.  Just make sure you pay attention to the plan rules.  For example, with FSA plans you must use all funds before the end of the year or you lose whatever is leftover.  

Do a financial check in

This is also a good time to check in on your finances in terms of your tax deductions and 401K.  Are the tax deductions on your paycheck too high or too low?  Now is a good time to adjust them. Ask to fill out a new W-4 tax form.  Are you contributing as much as you want to your retirement accounts?  Are you seeing enough growth or do you want to make changes to how the money is being invested?  It’s a good idea to revisit these things at least once a year and make adjustments if necessary.  You might as well do it all at the same time during your open enrollment period. It may be a little overwhelming, but it’s worth it!

Company benefits are an essential part of your compensation, and that’s why your company’s open enrollment period is so important.  It’s the only time during the year that you can add or make changes to the benefits you are enrolled in.  Make sure you are maximizing the value of the benefits you are receiving.