Fall is a season of change, and for many of us, that includes another round of open enrollment.
But before you check the same boxes as last year and call it a day, when was the last time you really looked at what your employee benefits offer? Between health insurance, retirement savings, life insurance, and everything else that might be included in your benefits package, there's a lot to consider. And while it's easy to stick with what you know, the choices you make now can affect both your finances today and the plans you're making for the future.
So, before you renew last year's selections, let's walk through a few things worth reviewing.
What Is Open Enrollment?
Open enrollment is the time of year when eligible individuals can sign up for, review, or make changes to certain insurance and benefit plans. Think of it as an annual opportunity to check in on your coverage and make sure it still fits your life. Maybe you've gotten married, welcomed a child, changed jobs, or simply have different financial priorities than you did a year ago. Even if nothing major has changed, it's still worth taking another look.
Who Can Participate in Open Enrollment?
If your employer offers benefits, you may be eligible to participate in its annual open enrollment period, depending on your employment status and the requirements of your employer's plans.
But what if you don't have access to benefits through work? If you're self-employed, between jobs, or don't have employer-sponsored health coverage, you may be able to explore options through the Health Insurance Marketplace. According to HealthCare.gov, Marketplace eligibility generally requires that you live in the United States, meet applicable citizenship or lawful-presence requirements, and not be incarcerated. And if you miss the regular enrollment window, certain life events, such as getting married, having a baby, or losing existing health coverage, may qualify you for a Special Enrollment Period.
Just remember that enrollment dates and eligibility requirements can vary depending on the type of coverage you're considering.
5 Things Worth Reviewing During Open Enrollment
Your benefits package might have more to offer than you realize. Before making your selections, here are five areas worth a closer look.
1. Does Your Health Insurance Still Fit Your Needs?
A lot can change in a year. Maybe your family has grown, your healthcare needs have changed, or you've noticed you're spending more on medical expenses than you expected. Whatever the case, the plan that worked well for you last year might not be the best fit this year. As you compare your options, look beyond the monthly premium. Consider your deductible, copayments, out-of-pocket maximum, and whether your preferred doctors and prescriptions are covered. A plan with a lower monthly premium might seem like the obvious choice, but depending on how often you need care, it could end up costing you more throughout the year.
The question to ask yourself: Am I choosing this plan because it still works for me, or simply because it's what I had last year?
2. Are You Taking Advantage of Your HSA or FSA Options?
Healthcare expenses can add up, and depending on your eligibility and employer's benefits, you may have access to accounts that can help you plan for those costs while offering certain tax advantages.
Two common options are Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs).
Health Savings Account (HSA)
An HSA allows eligible individuals to set aside money for qualified medical expenses. To contribute, you generally need to be enrolled in an HSA-eligible health plan and meet other IRS requirements.
One benefit? The money in your HSA doesn't expire at the end of the year. Unused funds can carry over, giving you the flexibility to save for future healthcare expenses.
Flexible Spending Account (FSA)
An FSA is typically offered through an employer and allows you to set aside pre-tax dollars for eligible healthcare expenses. The biggest difference is that FSA funds are generally subject to use-it-or-lose-it rules. Some employers offer a limited carryover or grace period, so it's important to understand your plan's specific rules. Both options can be useful, but they work differently. Taking a few minutes to understand what's available to you can help you make a more informed decision.
Learn more through the IRS guide to HSAs and other tax-favored health plans.
3. When Was the Last Time You Reviewed Your Life and Disability Insurance?
It's easy to focus on the benefits you use regularly, like health insurance, and overlook the coverage you hope you'll never need. But life and disability insurance can play an important role in protecting your financial well-being.
Think about what's changed since you last reviewed your coverage.
Have you gotten married? Bought a home? Started a family? Taken on new financial responsibilities? If your employer offers life or disability insurance, consider whether the coverage would be enough to support you or your loved ones if something unexpected happened. It's also worth understanding any coverage limits, exclusions, and what happens to your benefits if you leave your employer.
4. Is Your Retirement Savings Strategy Still on Track?
Your retirement benefits deserve some attention, too.If your employer offers a 401(k) or another retirement savings plan, start by looking at how much you're contributing.
Are you contributing enough to receive your employer's full matching contribution, if one is offered?
And when was the last time you checked your investment selections or updated your beneficiaries?
Your goals and financial circumstances may have changed since you first enrolled. Maybe you're earning more, working toward a new savings goal, or getting closer to retirement. Even if you don't make any changes, taking the time to review your retirement savings can help you see whether you're still moving in the direction you want to go.
One thing to remember: Depending on your employer's plan, you may be able to adjust retirement contributions throughout the year, not just during open enrollment.
5. What Other Benefits Might You Be Overlooking?
Here's something worth checking: your benefits package may include resources you've never used or didn't even know were available.
Depending on your employer, you might have access to:
Employee assistance programs
Wellness resources and incentives
Dependent care benefits
Financial education resources
Additional voluntary insurance options
Some of these benefits could help with expenses you're already managing or offer support in other areas of your life. Before you finish your selections, take a few minutes to read through your full benefits guide.
Your Open Enrollment Checklist: Are You Ready?
There's a lot to think about during open enrollment, but you don't have to figure it all out at once.
Whether you're reviewing your current coverage or enrolling for the first time, use this checklist to help you stay organized and make sure you're covering the important details.
Before You Get Started
Confirm your open enrollment dates and submission deadline.
Gather information for yourself and anyone you plan to cover.
Think about what's changed in your life, income, or financial priorities over the past year.
Have your current benefits guide or Marketplace plan information handy.
Compare Your Health Coverage
Review premiums, deductibles, copayments, and out-of-pocket maximums.
Make sure your preferred doctors, hospitals, and prescriptions are covered.
Consider your anticipated healthcare needs and expenses for the coming year.
Take Another Look at Your Other Benefits
Check whether you're eligible for an HSA or FSA and review your contribution options.
Review your life and disability insurance coverage.
Check your retirement contributions, employer match, and beneficiary designations.
Look into additional benefits, including wellness programs, dependent care, and financial education resources.
Before You Submit
Compare your options and what they could cost you throughout the year.
Double-check your dependents, beneficiaries, and coverage selections.
Make sure you've completed any required forms or documentation.
Submit everything before the deadline and save a copy of your confirmation.
Making Your Benefits Work for You
Open enrollment may only come around once a year, but the decisions you make can have an impact well beyond your next paycheck.
And while it's tempting to stick with what worked last year, taking a little time to review your options can help you feel more confident about the choices you're making. After all, your employee benefits aren't separate from the rest of your financial life. They're part of how you manage expenses today, protect what matters most, and prepare for what's ahead.