Understanding open enrollment is incredibly important for those looking into health insurance and employee benefits. This may be someone looking for their dream job or simply evaluating their existing options.
Open enrollment is the annual period (usually in the fall) where you can sign up for health insurance and amend or adjust any existing plans.
This annual assessment of healthcare and benefits provides the perfect opportunity to ensure existing coverage meets all current needs, including those of dependants and spouses.
What Is Open Enrollment?
Open enrollment is the designated period for enrolling in and assessing health insurance. It is the perfect opportunity to evaluate existing coverage, explore new options, and make decisions that can significantly impact your financial well-being and general health during the next year.
The specific details of open enrollment will vary depending on whether you receive your health benefits through your employer or whether you’re seeking coverage through the wider healthcare marketplace.
Most employers will announce the open enrollment period well in advance to allow their employees time to properly prepare for it and decide on their requirements.
Why Is Open Enrollment Important?
Open Enrollment isn’t just a form filling exercise; it’s an important opportunity to assess finances and health planning.
Life Changes
During the course of a year, very few lives stay exactly the same. Our healthcare needs change, our jobs and employment cover might change and family circumstances can be dramatically different year to year. Marriage, the birth of a child or even moving for a new job can completely alter the coverage you have.
The open enrollment period allows you to make any relevant changes to better suit your current situation.
Financial Changes
Making the right choices during open enrollment can have significant financial implications.
Appropriate coverage can mean saving money on premiums and out-of-pocket costs. It can also provide an opportunity to align your healthcare expenses with your budget if that has changed during the year.
Maximise Benefits
Open enrollment is the perfect time to explore any additional benefits or coverages that might be available to you.
This can include cover for dental work, eye tests and even health savings accounts. Sometimes these are options presented by an employer, and sometimes this can be something you will need to explore further in the insurance market.
Health Insurance Options
Health insurance is, really, the central focus of open enrollment, and understanding your options during this window can be crucial to securing a plan that truly suits your budget and requirements..
Health Maintenance Organization (HMO)
HMO plans will typically require you to choose a primary care physician or PCP. In this plan you will need referrals from your PCP to see any necessary specialists. HMO plans are amongst some of the most affordable options but will limit your choice of healthcare provider.
Preferred Provider Organization (PPO)
PPO plans typically offer some more flexibility when it comes to choosing healthcare providers. You won’t often need referrals to see a specialist, but premiums and ad hoc costs may be higher.
High-Deductible Health Plan (HDHP)
HDHPs will come with lower premiums but most often have higher deductibles. In many cases they are paired with HSAs, which offer opportunities to save money pre-tax for medical expenses.
Of course every medical plan will have its advantages and disadvantages. The best option will most likely be dictated by both budget and lifestyle. During open enrollment, take the proper time to assess your specific healthcare requirements and consider how these plans might best align with your situation.
It’s also an ideal time to assess what your current employer offers in terms of benefits and to optimise your resumeto explore where there might be better options elsewhere.
Additional Benefits and Coverages
Whilst health coverage is the main focus during open enrollment, it’s not the only thing to consider. Many employers and insurance providers will offer a range of additional benefits and coverages that can enhance your overall package. For those looking for their dream job, this might be something to consider during this assessment period.
Dental Insurance
Regular dental checkups are essential for your overall health. Some medical packages will also cover general and reparative dental works.
Vision
If you wear glasses or contact lenses, vision coverage can help offset the expenses of eye exams and lenses. Particularly in industries where your eyesight is strained by screens or prolonged focus periods, this can be valuable.
Flexible Spending Accounts (FSAs)
FSAs allow you to set aside pre-tax money to cover qualified healthcare expenses, reducing your taxable income.
The Open Enrollment Process
Navigating the open enrollment process doesn’t have to be complicated or stressful, especially if you’re prepared.
Here are some guidelines for how you can assess your open enrollment options with your employer.
Step 1: Find Your Existing Coverage Information
Getting started with your company’s healthcare and benefits portal is often the best route if you are an employee receiving benefits. This will help you to properly assess how your current plan meets, or falls short of, your needs.
Step 2: Understand Your Current Coverage
Within your benefits portal, there will likely be a specific area where you’ll find all of the necessary information and options for making changes to your existing coverage.
It is important to take some time to properly review your current benefits before making any changes. The list includes your health insurance, dental and vision plans, and any other supplementary coverage that you may have.
Step 3: Seek Advice On Options
Many employee benefits portals will present you with the plans and options that are currently available to you. Take some time to look into the details of each option, including any premiums and deductibles. If you have questions or need clarification, ask your employer’s HR department or a benefits counsellor. You can gain valuable insights from them to guide you towards better decisions.
If you want to explore roles with better health benefits and enhanced options, we can help you to optimise your resume to land that dream job. Learn more about how we help candidates stand out amongst 100s of applicants.
About the author
Kazuyoshi Fujimoto, PE
Founder | Engineering Career Coach | Principal Mechanical Engineer
Kazu oversees all of ultmeche’s engineering services. He provides consulting such as resume reviews, rewrites, mock interviews, and all services career related. Additionally, Kazu performs consulting work regarding Oil & Gas, Automotive, and Aerospace & Defense. Kazu is licensed as a professional engineer in the state of California and has 9+ years of experience in Oil & Gas, Automotive, and Aerospace & Defense.