It’s open enrollment season: A Q&A with David Feinberg
"Providing more clarity about the costs associated with health insurance can create more ease for employees while they’re selecting their plans," says David Feinberg.
We caught up with David Feinberg, senior vice president of Insurance Programs & Risk at Justworks. He discusses the best way HR executives can prep employees for open enrollment season, while offering each employee the best plan.
How can HR executives best prepare their employees for open enrollment season?
Before business leaders can best prepare their employees for open enrollment, they themselves have to make plan selections for their employees to choose from. To prepare for this, employers should take a pulse on what’s most important to their employees in their health insurance plans, review compliance materials around contributions, and speak with their broker/provider to understand what’s available for the year.
We’ve seen success in providing small business leaders with an employee survey to better understand what’s most important to their teams. This helps to inform employers as they select the right plans for their employees. Questions to ask employees before employer plan selection include: “what is more important to you — a broader network of providers or lower monthly costs?” and “on a scale of 1-10, how important is out-of-network coverage to you?”
When it comes to preparing employees for open enrollment, employers should do their best to educate employees about their plan options. Providing a glossary of common terms, like the difference between a copay and a deductible, and what a PPO vs. an EPO plan is, can be very helpful for employees entering open enrollment season.
Health insurance plan rates typically increase on an annual basis. Understanding the “why” from your broker/provider, so you can proactively relay the information to employees will help them make informed decisions during open enrollment.
Additionally, providing more clarity about the costs associated with health insurance can create more ease for employees while they’re selecting their plans. In particular, communicating transparently with employees so they understand the portion of insurance premiums paid for by their company, can be helpful as employees explore their plan options.
What are some top things employees should know as we approach open enrollment season?
Employees should consider the following as they approach open enrollment season:
Identify any changes since last year’s open enrollment. For instance, do you expect any medical procedures in the coming year, are you considering paths to parenthood, and/or are you hoping to book additional specialist visits? While many of these circumstances are unpredictable, if you have any changes you can anticipate, it’s important to keep them in mind so you can select the most appropriate plan.
Know if your doctors are in-network. One of the most critical things to understand is if your current doctors participate in the networks or plans you’re considering. While there are good reasons to shop exclusively on price, changing your doctors can be disruptive when navigating the health care system. An easy way to find out if your doctors are in-network is to check with the carriers (i.e. carrier portals).
Be prepared to ask questions. Health insurance jargon can be challenging to weed through, and knowing what you don’t know can be empowering when reviewing plan options. Identifying the questions you have (like what is an FSA, or what does the deductible mean for my out-of-pocket expenses) as early as possible can ensure you hit your open enrollment deadline, and make a decision with confidence.
Make the most of your selected plan: One way for employees to take an active approach to managing costs and developing a savings plan for future medical expenses is to explore qualified high deductible health plans coupled with an HSA, if available. By combining a high deductible plan with an HSA, employees can pay the deductible and other qualified medical expenses with the tax-free money set aside in an HSA.
Once employees have selected their plan, it’s also important to know the best way to leverage it. Going to annual preventative care appointments, staying in-network (when possible), using the emergency room only when absolutely necessary (urgent cares can be a great alternative), and enrolling in a HSA or FSAs (if available) can help keep costs down.
What are the most common open enrollment challenges? Any data to share about common challenges or complaints with the open enrollment process?
Navigating the health care system is challenging in general. Deciphering the coverage under each plan option to make an educated decision is the biggest challenge, and health care is personal, so really understanding how a plan is going to interact with your specific needs is crucial.
When employees enter open enrollment season, it can feel overwhelming with so many things to consider. Not only are employees trying to understand what each plan consists of and what their costs are, but they’re also discerning whether it’s most beneficial to their household. Take your time!
Related:
How to increase benefits ROI during open enrollment