Make the Best Choices
Open enrollment is a time to make some choices that will help you save money and build wealth. This time period for most employers begins in late October and concludes at the end of November. Additionally, the U.S. government’s health insurance marketplace or individuals is open through December 15th.
First, please take a pause…and then read through all of your open enrollment options. You will miss out on savings if you use a “one click” strategy. Given the tight labor market, employers are now offering more options and better benefits.
Next, compare costs between benefits packages. The idea is to get the richest coverage for the monthly premium.
Further, take into account the amount of out of pocket expenses – deductibles and copays – based on what you plan to pay in medical costs next year.
There’s a twist! If you are eligible to participate in your spouse’s plan please compare it to your benefits. It may make sense to stay on the singles plan if that benefit plan is more robust. Work with your spouse to review each other’s benefits during the open enrollment period.
For domestic partners, you should check with your employers to find out about coverage. Currently there is no federal law that requires employers to cover domestic partners so the coverage will vary by company.
Health Savings Account with Open Enrollment
If available, during open enrollment, you can choose to save money pre tax for healthcare expenses with HSA’s (Health Savings Account).
HSAs are fantastic and you can save on medical services (copays) and products (eyeglasses) with pretax dollars. Said differently, if you are in the 32% tax bracket, the IRS will pay for 32% of your medical expenses.
Many companies are helping make open enrollment go more smoothly. They are offering online enrollments, virtual enrollment seminars, and webinars to answer questions.
What questions about open enrollment acronyms?