Open enrollment season is a very important time of year for your finances. Those outside the fields of financial services and human resources may not be familiar with the term. Very simply, open enrollment is a brief period of time, or “window,” in which changes to insurance and other benefits may be made.
Most commonly the term open enrollment is used in relation to employer benefit plans. But, there is also an open enrollment window for Medicare. And, for those who are self-employed, this is still the time of year to review your health insurance and other policies.
Open Enrollment For Employed Individuals
Those with a job that includes employer benefits should be receiving notification soon regarding the open enrollment window for your company. If you are not sure when open enrollment occurs at your company that information should be in the employee handbook, on an employee website, or available through your HR department.
One decision to be made at open enrollment is regarding your health insurance. Often, even if you want to continue with the same plan, you still need to re-opt in. If your company offers more than one health insurance option, I strongly encourage you to revisit all of the plan options before making an election.
It may feel like you took the time previously to make your current election so now you are all set for years to come. But, the terms of coverage change every year, even for the same plan. Often the deductibles have changed. You may discover that certain doctors or services are no longer covered. It is very likely that the employee portion of the premium – the amount coming out of your paycheck – has increased.
Review All Benefits, Not Just Health Insurance
Additionally, open enrollment often involves more than just healthcare. Employers may offer supplemental life insurance, flex savings accounts (FSA) for dependent care or healthcare FSAs, among other benefits. It is likely your situation has changed at least a bit since last year. Unappealing as it may be, it is worth it to take the time to review and asses your options.
If you have reviewed your options and are unsure of what to do, schedule a call. It will likely only take a few hours and I can help you sort through the information to determine which benefits are most beneficial for you.
Open Enrollment For Adults Age 65+
Adults age 65 and older are eligible for Medicare. The open enrollment period for 2024 begins on November 1, 2023 and ends on January 15, 2024.
There are changes taking place January 1, 2024 to Part C (Medicare Advantage) and Part D (Prescriptions). If you are on Medicare this Fortune Well article explains some important upcoming changes for 2024.
For additional details on Medicare including how to join, and the options available visit Medicare.gov. The site also includes a number you can call with questions or for additional assistance.
Self-Employed Persons and Others without Employer or Government Benefits
Those not covered by an employers health care plan or Medicare are already aware of the high expense of self coverage. Whether you are an early retiree, self-employed, or working a contract job, health insurance likely eats up a large portion of your budget. (I understand this all too well on a personal level). Still, health insurance is a necessity as it is impossible to know when an unexpected illness or injury may occur.
As with employed individuals, those purchasing insurance privately should review their plan options each year to make sure that their existing plan is still the most affordable and appropriate.
As with Medicare, Marketplace coverage begins on November first. But it is not to early to start reviewing your options. You can visit Healthcare.gov for additional information. There are also insurance brokers who are able to help individuals and small businesses to locate the most suitable plan, so you can search for those knowledgeable about plans in your local area.
Private Insurance Policies
If you do not have employer benefits that means you are are also missing out on items like employer sponsored life and disability insurance. Just because you aren’t covered by an employer does not mean that you cannot obtain these policies. Life, disability, and long term care policies can be purchased privately.
Private policies do not need to be purchased at a specific time of year. But, don’t put it off too long because you never know when you or your loved ones may need the coverage.
If you are unsure what policies and/or levels of coverage you should be carrying that is something that I can help with. I am a fee only advisor and do not sell insurance because I view it as a conflict of interest. But I do make recommendations for coverage and have a relationship with a third party insurance broker who coordinates with me to help clients find the right policies. Schedule a call or learn about my other services on my website.
This is the time of year when all of us in the United States must revisit our healthcare insurance elections. It may be that you are already signed up for the most appropriate policy, or it may be time to make a change. You won’t know until you take the time to investigate. And for those with employer benefits, this is also the time to review and renew or make changes to other benefits such as insurance or flex spending accounts. It may be a hassle, but it is worth the monetary savings.