As open enrollment season approaches, it’s a critical time for employees to make informed decisions about their benefits. Your choices can have a significant impact on your health and finances for the year ahead. However, many people make mistakes during the process, which can lead to costly consequences. This video from our friends at Framewealth Partners walks through five common mistakes people make during open enrollment—and how to avoid them.
1. Not Reviewing Current Benefits and Changes
One of the biggest mistakes is not reviewing your current benefits or understanding any changes. A lot can change in a year—both in your personal health needs and in the benefits your employer offers.
It’s easy to simply re-enroll in the same plan as last year without giving it a second thought. However, this could mean missing out on a new option that might suit you better or not adjusting your coverage based on changes in your life. Take the time to review both your current coverage and any updates from your employer. Make sure your choices this year are framed around your current needs.
2. Ignoring Plan Changes or New Offerings
Another common mistake is ignoring plan changes or new offerings from your employer. Premiums, deductibles, and coverage details often change from year to year, and it’s essential to stay informed.
Even if your plan from last year worked well, don’t assume it will still be the best fit. Employers frequently update their offerings, and failing to review these changes could result in higher costs or inadequate coverage. A quick review of the new plan details can help you avoid surprises later and could lead to discovering a better option.
3. Underestimating or Overestimating Healthcare Needs
It’s easy to misjudge your healthcare needs during open enrollment. Some people choose the lowest-premium plan to save money upfront, only to find that they end up paying more out-of-pocket due to higher deductibles or less comprehensive coverage.
On the flip side, others over-insure themselves by selecting high-premium plans that they don’t fully use. To avoid these mistakes, take a moment to reflect on your healthcare usage from the previous year. Consider how much medical care you expect to need in the coming year and frame your decision accordingly.
4. Not Using Available Tools and Resources
Employers typically provide a range of tools and resources to help you make informed choices, yet many employees don’t take full advantage of them. These resources might include cost calculators, comparison guides, or webinars to walk you through your options.
These tools are designed to help you understand the pros and cons of each plan and how they fit your personal and financial needs. Don’t skip these—they can help you make smarter decisions and frame a clearer picture of what each option means for you and your family.
5. Missing Enrollment Deadlines
Perhaps the most critical mistake you can make during open enrollment is missing the enrollment deadline. If you miss it, you could be stuck with last year’s plan or, even worse, have no coverage at all.
To avoid this, set reminders, mark your calendar, and ensure you submit your selections on time. It’s a simple step, but it can prevent a lot of unnecessary stress and complications down the road.
Final Thoughts
By avoiding these five common mistakes, you can make more informed decisions during open enrollment that will benefit both your health and finances. Taking the time to review your options, assess your healthcare needs, and use available resources will help you frame your benefits in the best way possible for the upcoming year.
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