Open enrollment is the time when your company employees can make a change their health insurance benefits or stop paying for it and get rid of it if they so desire. This is the time when your employees can make updates to the type of health insurance they elect or to reduce their current plan or increase their coverage plan to a more robust plan with higher coverages if available. It is a fact that across the country that many employees do not opt use this chance to change their coverage during the short time frame available during open enrollment. As an employee be sure you bypass these regular mistakes featured below that many employees make when open enrollment is available. The enrollment errors are as follows:
1. Open Enrollment Missed Deadline
Across the country there is not a set date for open enrollment to take place, but it normally is offered to employees in November and is open for around a couple of weeks to a month. The fact is when it comes to open enrollment if an employee does not take advantage of this opportunity to make changes it can have dire consequences for them. Employees need to take advantage of open enrollment.
When an employee misses the open enrollment window time frame, they are no longer able to change their policy to improve coverages or to reduce costs on the plan they choose to reduce their monthly expenses. Open enrollment is available outside the regular annual open enrollment period for marriage or when a baby is born, but normally that is the only exception.
When open enrollment is missed it is another year before any changes can be made, up or down. The cost of missing this window in missed coverages needed or reduced monthly premiums can be immense.
2. Enrolling Again with the Same Health Insurance Benefits Plan from the Year Before or More
Quite often employees will not think about making changes to their health insurance coverage plans, particularly if they have had the same plan for multiple years. It may be due to the fact that their worried about making a mistake if they make a change or they do not comprehend what new plans are available and what the plans offer so they do not even take a look.
The plan you carry now may be perfect for your health insurance coverage needs, but there may be better coverage with improved benefits available for just a few dollars more that would be far better for you. Be sure to take the time and do a complete review of all the health insurance coverage plans available and look all the components that must be factored in when making your decision. Review the following factors:
- Annual Deductibles
- Total Co-payments
- Generic and Non-Generic Prescription benefits
- Max Annual Out-of-picket Costs
3. Picking the Incorrect Plan for your Health Insurance Needs
During open enrollment there are important choices you are going to make that have far reaching consequences. That last thing you want is a health insurance plan that does not give you the coverage you require. Doing this can turn into more upfront payments you have to pay directly and big deductibles that might break your budget and that are hard to meet by years end. The problem you create for yourself is your willing to take lower coverage in hopes you don’t get ill.
There is the coverage situation where you opt for too much coverage. This happens when you pick a health insurance plan with monster huge monthly insurance premiums, but your coverage never kicks in.
Employers need to check with the company’s Human Resources department to see the health insurance benefits plans the company offers features an online system component that helps both the company and its employees pick the best health insurance plan possible for the upcoming year of coverage. Many plans offer a system that allows you to enter data about your coverage needs and then it provides an selection of choices that fit your personal circumstances and needs.
4. Employees Not Knowing or Forgetting About Tax-Free Health Savings Account Plans
Employees that choose plans with a high annual deductible to save money on monthly premiums have the ability to set aside money from their wages or salary to accumulate savings for potential future medical expenses through a tax-free health care savings plan. There are specific rules and thresholds that must be met regarding deductibles and max out-of-pocket expenses, but those are easy to learn about and comply to.
When open enrollment time comes around available plans can be hard to understand and make decisions about, but do not let it overwhelm you. Review the tips offered here and check with your human resources department to get guidance on how to make the best decision. Then, make a move an choose a plan that fits all your needs. You will be glad you did.
