The “Zillennial” guide to open enrollment

Navigating the health care system can be overwhelming, especially if it’s your first time making plan selections. When entering open enrollment, it’s important to educate yourself so you can make the best plan selection for you and where you are in your life.

If I can leave you with one key message, more expensive does not always mean better. Understanding your specific needs, a plan’s total cost, and how tax-advantaged accounts work, can not only save you money, but also make sure you are getting the most out of your health insurance plan.

1. Consider your health care needs – While there will always be unknowns, look at how you’ve consumed health care in previous years (i.e. do you see a specialist regularly?; do you expect medical procedures in the next year?; are you considering paths to parenthood?; etc..) as a starting point to make sure your plan covers those anticipated needs. Also, if you recently graduated from your parents’ plan, the one they chose probably doesn’t make the most sense for you, as they are most likely on a “family” plan, which considers the health care needs of multiple people.
2. Know key terms – There’s a ton of jargon when it comes to health insurance, so make sure you understand terms like deductible, copay, and coinsurance so you understand your total cost (more on that below). Knowing what these key terms mean will help you make the best decisions for you when it comes to plan options. Ask questions! Your company’s HR team can be a great resource, and they might even have a breakdown of definitions and costs for additional insight, like Justworks’ Health Insurance Glossary.
3. Understand the total cost – Once you have an understanding of the key terms, you should be better positioned to calculate and understand what your total cost might be, including premiums and cost of care. This can fluctuate throughout the year based on care, but having a ballpark estimate will help with budgeting and to avoid any surprises after a doctor’s visit or procedure.
4. Explore a Health Savings Account (HSA) or Flex Spending Account (FSA) – Ask your employer if these options exist, and consider them as a way to save money. These options are tax-advantaged vehicles that can help you pay for your health care needs. HSAs are comparable to 401k plans for your health care needs. As you age and potentially add dependents to your plan, an HSA account can help fund your changing (and likely) increasing health care expenses. With FSAs, it can be advantageous to start small, because if you don’t use the funds, you lose them. Also, know what’s eligible! Many household health and wellness products like sunscreen and bandaids, in addition to the more obvious health expenses like contact lenses, are typically included as eligible expenses for these funds. Keep this top of mind throughout the year so you’re not scrambling to deplete your fund at the end of the plan year.
5. Stay organized – Know the resources available to you, don’t be afraid to ask questions, and stay on top of key deadlines. This is particularly important around open enrollment because you can’t make any changes to your health insurance plan if you miss your selection date unless you have a qualifying life event. Additionally, keep in touch with your employer to make sure you know who you can direct open enrollment questions to. This is a highly personal process that can be stressful, so knowing where to seek resources to help you make informed decisions can be very helpful throughout open enrollment.

Related: 5 generations of employees share their real open enrollment wants and needs

Once you’ve selected your plan, it’s important to know the best way to leverage it. Some plans offer wellness and fitness perks, which can be found in your carrier portal. Going to annual preventative care appointments, understanding the difference between in-network and out-of-network providers, staying in-network (when possible), and only visiting the emergency room when absolutely necessary can help keep costs down.

Being prepared and empowered to truly explore your health insurance plan options during open enrollment is key. While the most expensive plan can sometimes be the best option for you, considering the details of each plan available, and making educated, informed decisions will serve you well. This is an annual exercise, and learning what questions to ask (of yourself and your employer) to make the best choices for you (and your family) is an important skill set to develop.

David Feinberg, SVP Insurance & Risk at Justworks