Tips for Navigating the Open Enrollment Process

Department of Financial Services, Consumer eViews Volume 6 Number 45

November 6, 2009

It’s that time again; with cooler weather and football games, comes open enrollment for health insurance and other benefits. Each year many of us have the opportunity to make insurance and other benefit changes for the coming year. As the Insurance Consumer Advocate, I want to provide some tips for you to think about as you review your benefit package:

• Begin by checking the dates of your open enrollment, especially the final submission date. Don’t wait until the last minute! Remember, this time comes only once per year.



• When analyzing the offerings for health insurance, look for plan changes such as an increase in deductibles, copayments, new limitations or exclusions. If you don’t see something identifying this information, call your human resources department and ask them to identify the changes.



• With life insurance, the following issues are important:
•  Is life insurance offered and have you enrolled?
•  If so, determine if you have adequate coverage. Do you want to purchase coverage, how much can you purchase under the group, how much will it cost, will you need to complete a medical questionnaire and can you take it with you if you leave?
•  Assuming you currently have coverage, have you updated the beneficiaries lately—added a new child, removed an ex-spouse.
•  You may wish to consult a financial advisor (insurance agent, financial planner, etc.) for assistance in determining appropriate coverage amounts.
  
  
• Review each of your Supplemental coverages (dental, vision, cancer, disability income, prepaid legal, etc) to make sure that your needs are currently being met. Be aware that both plans and providers may change on an annual basis.



• Reimbursement Accounts include Flexible Spending Accounts, (Dependent-Daycare or Medical Reimbursement), and Health Savings Accounts. The two, medical savings accounts and medical reimbursement accounts, are very different so understand what you are selecting.
  •  If you are participating in a Flexible Spending Account, make sure the amounts you selected for last year remain the correct amount you want deducted from your paycheck. Check that your child/children are still eligible for the dependent daycare.
  •  For medical reimbursement accounts, review this year’s medical expenses and forecast next year’s expenses including any expected high ticket costs such as orthodontia.
  •  Remember to be conservative with the amount for Flexible Savings Accounts. The amounts you do not use, you will lose. The same rule does not apply to a Health Savings Account when the balance rolls over.
  •  Don’t assume this year’s annual election is appropriate for next year’s needs.
  
  
  
•  Review your W-4 form with your employer to verify that your personal information is accurate. Also, be sure to confirm that your information is accurate with all of your insurance providers.

Your benefit package has a substantial impact on your financial health, as well as, you and your family’s well being. Take the time to thoroughly review your benefits using this guide; do your homework; work through it and ask questions. You will find that there are fewer surprises, less hassle and much more peace of mind.