If you’re navigating open enrollment, we’re here to help. Whether you’re a W2 employee, self-employed, or looking at Medicare options, Jason and Dave discuss major considerations.
What is Open Enrollment?
Open enrollment is the annual window during which you can sign up for, renew, or change your health insurance plan or other benefits. Usually, you need to make your decisions during this window except for some qualifying events (like marriage, birth of a child, or loss of other coverage). However, most people spend about an hour deciding the options they’ll be stuck with all year. It’s worth doing a little research or asking for help. At Cook Wealth, we’re happy to go through this process with you! Just reach out to your advisor to schedule a call.
Why Is Open Enrollment Important?
Choosing a health insurance plan that’s right for your current life stage and circumstances is a big decision that can impact your finances and access to healthcare. Open enrollment is the time to pick the right plan or adjust your plan for the coming year.
- Review changes in your current plan: Take some time to look at updated offerings, premium costs, coverage benefits, and out-of-pocket expenses.
- Compare new plans: New plans or providers might offer better benefits or cost savings.
- Avoid penalties: Missing the open enrollment period could leave you uninsured and facing penalties or gaps in your healthcare coverage.
Considerations for Open Enrollment
There are lots of things to consider when choosing the best plan for you.
- What is the monthly premium?
- How much is the deductible for different types of doctors or care?
- What will your co-pay be?
- What’s your out-of-pocket maximum?
- Have there been any policy adjustments to what you currently have?
- Will you have any procedures done this upcoming year?
- Have there been any legislative changes that affect coverage availability and costs?
Other Benefits
Health Insurance isn’t the only benefit offered by some employers. When you’re enrolling in benefits, it’s important to weigh all the options from health insurance, to life insurance and more. Life insurance can be a tricky one to get right. We tend to select term policies over whole-life policies.
Should you contribute to a health savings account (HSA) or flexible spending account (FSA) if offered?
Health Savings Account (HSA)
- You can contribute to an HSA pre-tax and the interest earned on the account is tax free.
- Withdrawals for qualified medical expenses are tax free
- If you don’t use the money in the account, it rolls over from year to year
- You can access an HSA through a high deductible plan
- Allows for financial planning opportunities once the account has reached a certain threshold
- More information on healthcare.gov – https://www.healthcare.gov/high-deductible-health-plan/
Flexible Savings Account (FSA)
- You must use it in the year or you lose the money
- Unlike an HSA, the FSA does not transfer if you change employers
- You can contribute pre-tax income dollars to pay for health care
- More information on healthcare.gov – https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/
High Deductible Plans are good for people who don’t have many expected or existing medical costs and want a lower monthly premium. It’s important to regularly re-evaluate you and your family’s current and upcoming medical needs. Signing up for one plan and not revisiting if it’s right for you as your life changes might leave you in a tricky spot when something unexpected happens and you need coverage.
We’re Here to Help
If you would like for your team at Cook Wealth to walk you through your open enrollment options, please reach out to your financial advisor, email support@cookwealth.com, or give us a call at 919-784-9100.
Get more information about open enrollment on healthcare.gov.