It’s that time of year when employees across the country have the opportunity to change their workplace benefits during the open enrollment period. Companies will hold meetings, pass out booklets and launch apps to help workers understand their options, and experts say it’s more important than ever to pay attention and make wise choices.
“We’re creeping up on a point in time where the cost of health insurance is really impacting a person’s ability to save for retirement,” says Michael Levin, CEO and founder of Vericred, a health insurance data solutions firm.
Selecting the wrong health insurance plan could result in significant out-of-pocket costs, but that’s not the only danger workers face during open enrollment. Breezing through the process without much thought could also mean people leave valuable benefits on the table.
Here are seven tips from industry insiders to avoid expensive mistakes and make the most of this year’s open enrollment.
[Read: 12 Workplace Perks Your Wallet Will Love.]
1. New ways to access plan information. Workers whose eyes glaze over at the thought of reading a thick benefits booklet need to know there are other ways to get information. “For the first time in my career, we’re really having a willingness from employers to experiment with new forms of communications,” says Meredith Ryan-Reid, senior vice president of group benefits at MetLife. In addition to the traditional booklet and benefits fair, employers are rolling out mobile apps, dedicated websites and internal social media platforms.
Information isn’t coming only from employers either. For instance, Alegeus, a company that administers health care benefits for employers, has its own mobile app with a virtual assistant, Emma, who can answer coverage questions.
2. Plans may keep their name, but change their benefits. People who are happy with their current coverage may be inclined to choose the same plan without reviewing the small print. That’s a mistake, says Joe Ellis, senior vice president at CBIZ Employee Services Organization. “Just because the name is the same doesn’t mean you’ll be looking at the same plan,” he explains.
Employers looking for ways to cut costs may increase deductibles, copays and coinsurance requirements. Prescription drug formularies may be changed to eliminate coverage or increase costs for expensive brand name medications. What’s more, plan networks may change, meaning doctors who were covered last year may not be in the future.
3. HSAs need to be treated differently than FSAs. Employers are increasingly offering consumer-directed health plans, which typically charge lower premiums, but higher deductibles and other out-of-pocket costs. Some workers may be missing out on a key benefit of this type of health insurance.
Having a high deductible plan gives you the option to open a health savings account. Money deposited into the account is tax deductible, it grows tax-free and it can be withdrawn tax-free for qualified medical expenses. However, many people fail to open HSAs and others use them incorrectly.
HSAs work differently than flexible spending accounts. While money in an FSA can be lost if not used each year, funds in a HSA roll over indefinitely. That means people should max out their contributions to an HSA every year if possible, says John Young, senior vice president of consumerism and strategy at Alegeus.
[Read: FSA vs. HSA: How to Make the Best Choice During Open Enrollment.]
4. Wellness incentives are easy to earn. A healthy workforce means lower health care costs and greater productivity, so employers have a vested interest in keeping their workers in good shape. To do that, many companies offer wellness incentives that can result in additional money for an HSA, lower premiums or other perks. “There’s almost always a way to avail yourself of a wellness incentive,” Ellis says.
Some wellness programs require an ongoing commitment, such as enrolling in a smoking cessation program. However, many companies give out incentives for doing something as simple as filling out a health assessment form, getting vital signs measured or agreeing to wear a pedometer.
5. Voluntary benefits are a goldmine of valuable options. With health insurance being the most expensive and valuable benefit offered by most employers, workers may be inclined to focus all their time there. However, many employers offer a range of insurances and products, known as voluntary benefits, during open enrollment. These are items employees must pay for out of pocket, but are often offered at a reduced rate. “If someone is only spending 15 minutes [reviewing open enrollment choices], they may be missing all the wonderful benefits their employer offers,” Young says. Common options include life insurance, disability insurance, legal services, identity theft protection and critical illness insurance.
6. Your employer might offer additional perks. Open enrollment is also a good time to get acquainted with the other perks available through your workplace. “For two years, I didn’t realize, as an employee of MetLife, [that] I could get into museums for free,” Ryan-Reid says.
In addition to free admission, some companies may negotiate discounts on merchandise and travel for their employees. Others may pay for college tuition or offer student loan forgiveness programs. Look for details in your open enrollment packet or check with a human resources representative for more information on what’s available to you.
[Read: How Super Savers Max Out Their Retirement Accounts.]
7. The best way to maximize benefits is to take time to review them. Benefits insiders say the best way to make the most of open enrollment is to simply set aside adequate time to review all your options carefully and ask any questions you may have.
Too many people wait until the last minute. Then, they either opt to renew last year’s choices or make decisions based on premium price alone. “Less expensive is not always better,” Levin say. “And more expensive is not always better.” To make the most of open enrollment, read the fine print, consider your family’s needs and make an educated, rather than a rash, decision.
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7 Insider Tips to Make Open Enrollment Work for You originally appeared on usnews.com
