What to Consider Approaching Your Company’s Annual Enrollment

The choices of insurance available every open enrollment season can often be overwhelming. Your final decision may take an understandably long amount of time, but with the right direction you will come to the right conclusion. One way for you to help yourself is to hit the ground running. Start by outlining what you know regarding your insurance options and what you can easily do from there. These initial steps will take you closer to the plan that is right for you.

• Understand ALL your needs and whether or not your medical, dental and/or vision coverage addresses those needs. Consider any possibility that your needs will change in the next year. Don’t forget to also consider the needs of your dependents if you have any.
• Estimate out-of-pocket costs if you use a Health Care Flexible Spending Account (FSA). A Health Care FSA is an account in which you can contribute money pre-tax toward certain health care costs, including those not covered by your health plan. Because the funds are drawn from your paycheck before taxes, an FSA will save you money equal to the taxes you would have paid on the money set aside.
• Your employer may offer a Dependent Care Flexible Spending Account. This type of FSA allows you to set aside money toward care of your dependents such as pre-school and after-school care for your children, as well as adult/elder care. This money is contributed pre-tax, and will contribute to your overall savings.
• If you want to keep the primary doctor(s) you know and trust, check to see if they are in-network. You may end up paying more for their services if they are not. Take Torrance Health IPA (THIPA) for example. THIPA physicians contract with several insurance companies that include Anthem Blue Cross, Blue Shield of California, Cigna, Health Net and UnitedHeathCare. You may in fact have coverage for medical care provided by THIPA. Check your HMO or PPO plan for coverage and restrictions.
• Small things go a long way toward your final enrollment decision. Find time to update beneficiaries and go over your retirement savings contributions. See if the human resources department at your company can guide you toward the best plan for your circumstances. Start planning early. When the time comes you want to make the most informed decision without missing any details.