4 Tips to Help You Prepare for Your Annual Benefits Election
Summer is in the rearview mirror, and work schedules have picked up. School activities and fall sports are now in full swing. There are many important events coming up that couples are likely looking forward to, such as Halloween or Thanksgiving. One thing most couples aren’t necessarily focused on is open enrollment for their company benefits — the one time of year you get to change your benefit choices outside of qualifying major life events.
Yes, open enrollment season is upon us. Are you prepared to make your elections? As a couple, it’s important to make benefits decisions that make sense for both partners, provide for your needs as a couple and align with your overall financial goals. However, navigating two sets of employer-sponsored benefits can add complexity to your decision-making process.
The following tips can help you make smart open enrollment decisions as a couple.
#1 – Take time to understand both sets of benefits.
If you’re both eligible for employer-sponsored benefits, it’s important to carefully review all options and determine which set of benefits makes the most sense for you as a couple.
To conduct a side-by-side comparison of the two sets of benefits, start by gathering all benefits guides, summary plan descriptions and lists of coverages and expenses — as well as any other documents your employers provide. If you believe you’re lacking any important information, don’t hesitate to reach out to your company’s benefits representative to ask for additional details.
Once you’ve gathered all information, compare the details of both sets of options to consider which company provides the best benefits to meet your specific needs. Here are several considerations for common employer-sponsored benefits to keep in mind as you prepare for open enrollment:
- Health insurance – Premiums, copays, deductibles, out-of-pocket maximums, employer contributions, coverage levels, provider networks, ease of accessing care
- Health savings account (HSA) – Employer contributions, account fees, investment options
- Employer-sponsored retirement plan – Employer matching contributions, types of contributions available (pre-tax vs. Roth), investment options, plan provisions
- Flexible spending account – Eligible expenses, tax savings opportunities, carry overs, limitations
- Dental, vision, life, disability and other types of insurance – Coverage levels, employer contributions, costs for individual vs. family coverage
#2 – Evaluate your healthcare needs.
Next, take time to understand what your family needs in a health insurance plan. Consider the following:
- Any pre-existing health issues
- How much you can reasonably afford to pay in premiums, copays, deductibles and out-of-pocket maximums
- How often you visit the doctor
- Whether you’re comfortable with a plan that requires referrals to see specialists
- Whether your preferred doctors are considered in-network
- Any upcoming changes to your medical needs, such as an upcoming surgery, pregnancy, etc.
Gaining an understanding of your specific healthcare needs can help you identify benefit options that meet those needs.
#3 – Determine how any life changes may impact your coverage needs.
Have you experienced any major life events since you last reviewed your benefit options? If so, it’s important to consider how those events may impact your ongoing needs. Some of the more obvious events include getting married, having a child or experiencing a divorce. However, other changes such as starting a new business, buying a new home or taking care of an aging relative may also impact your benefits decisions.
#4 – Develop a comprehensive benefits strategy.
Once you’ve gathered the necessary information, identified your specific needs and reviewed any recent life changes, it’s time to develop a comprehensive benefits strategy that makes sense for your household. Some benefits, such as disability insurance, are only available to the employee, so it may make sense for both of you to elect individual coverage. Other benefits, such as health, vision and dental insurance offer family coverage options that can help streamline your efforts and potentially lower your overall cost.
In addition to the benefits themselves, be sure to consider how much each employer is willing to contribute. For example, if one employer pays significantly more toward health insurance premiums than the other, it may make sense to go with that employer’s health insurance plan.
