Tips for Reviewing your Benefits: Time Well Spent

It’s that time of year again…open enrollment at many companies, a time for employees to make changes to their benefits. I am very fortunate to work for a company that provides amazing benefits and plenty of options. Because of that, it is up to me to make sure I am taking advantage of what is offered and what is best for my family and me. The past few years have brought many changes to our family, like buying a house, changing job situations and two babies, causing us to re-evaluate our benefits and make changes accordingly.

Selecting the right health insurance plan may be one of the most important decisions Americans will make this open enrollment period, yet many workers do very little research on their health plans. Here are some statistics I have found interesting:

The 2014 Aflac Open Enrollment Survey found that 41 percent of employees spent 15 minutes or less researching their benefit options during the 2013 open enrollment season; and nearly a quarter (24 percent) spent five minutes or less.

In contrast, American workers typically spend more time:

• Researching for new car purchases — 10 hours. (I just recently bought a car and I know I spent more than 10 hours researching and deciding what to do!)
• Planning family vacations — five hours.
• Shopping for new computers — four hours.
• Deciding what television to buy — two hours.

I used to work in a doctor’s office and I was amazed at how little people knew about their own insurance coverage…so I think everyone could afford to spend a little more time learning about what they are paying for.

Those who don’t set aside time to research their insurance options may make hasty benefits decisions and end up wasting money. So I’ve come up with a list of tips to follow during this open enrollment season to help you make the most of your options.

1. First and foremost, make sure everyone that should be covered, is covered. Did you give birth, get married, or get divorced during the year? Typically, when you have a life event like that, you are granted a special time period where you can change your benefits options outside of open enrollment. But if you missed that opening, make sure you make any necessary changes now or you could risk not having someone covered or paying too much for someone that shouldn’t be covered.

2. Review your options. Don’t assume that all your company’s options are exactly the same as the prior year. A plan you’ve had for years could change a deductible amount or coverage amount, so make sure you review what’s offered to make sure you have the coverage and/or payment you need.

3. Consider changing your deductible amount and the impact on your budget/financial situation. A larger deductible could mean a lower monthly payment, or vice versa. Evaluate whether you prefer more cash flow during the month or less of a deductible when you have to use your insurance. If you do choose a higher deductible amount, a good tip is to make sure you have the deductible amount in your savings account, so you don’t go into crisis mode if you end up having to pay it.

4. Make sure your beneficiary information is current. Remember that divorce I mentioned in #1? Well you wouldn’t want your ex getting your life insurance payout would you? I know it’s not fun to think about, but make sure you have the correct people listed on your policy and you could save your family a lot of stress.

5. Prepare for any expected upcoming expenses and consider either using a Flexible Spending Account (FSA) or Health Savings Account (HAS). Or if you are already signed up for those, consider changing your amounts if you either underspent or overspent the prior year. These accounts let you set aside pre-tax earnings to pay for things like doctor co-pays, prescriptions and even daycare costs. But if you don’t use the entire amount you have set aside, your benefit might not be as great as you’d want. Don’t just pick any random amount…actually consider your expenses and plan accordingly.

6. Consider supplemental coverage, such as short-term disability or accident coverage, in addition to your standard health care coverage. Only you will know your life scenarios/family history, but there are several options available depending on what you want to be prepared for, many of which are offered by Aflac.

Aflac offers accident, dental, life, vision, cancer, hospital intensive care and more voluntary insurance policies, which are designed to supplement major medical plans, pay policyholders directly for unexpected costs associated with a covered serious illness, injury or loss. In addition, the cash benefits can be used to help pay rent, gas, groceries, child care or any other out-of-pocket expenses a worker may have. For nearly six decades, Aflac insurance policies have given policyholders the opportunity to focus on recovery, not financial stress. To learn more about these types of policies, visit the Aflac website. http://afl.ac/BH6ZR

7. Attend any informational sessions provided by your company or the benefits company. A benefits representative will always be willing to discuss their options with you, so utilize their knowledge if you have to.

8. Ask your Human Resources Representative any questions! They’re there to help you! Don’t just shrug off reviewing your options because you think everything is too confusing. I’m sure many people feel the same way, especially surrounding the health care reform.

 

The 2014 Aflac Open Enrollment Survey found that 4 in 10 U.S. workers said they waste up to $750/year on mistakes with their insurance benefits. That could go towards a nice family vacation!

 

If you would like to learn more, the 2014 Aflac WorkForces Report shows the impact health care reform is having in the workplace, the growing importance of voluntary benefits to workers, as well as the correlation between good benefits and business success. The fourth annual AWR incorporates responses from 5,209 employees and 1,856 business decision-makers and can be viewed here: http://afl.ac/BH6ZR

Overall, don’t assume. Don’t assume you’re getting the best coverage. Don’t assume you aren’t overpaying. So many changes, both by your family and your company, could affect your choices and decisions. Make the best of each year!

 

I was selected for this opportunity as a member of Clever Girls Collective and the content and opinions expressed here are all my own.