Open enrollment is the annual period when employees can make changes to their health insurance coverage, such as enrolling in a new plan, adding or dropping coverage, or changing their deductibles or copays. Employees must review their coverage and ensure it's still the best fit for their needs.
Here are some of the essential terms that employees should understand heading into Open Enrollment:
Premium: The monthly cost of health insurance coverage.
Deductible: The amount paid out-of-pocket before the insurance company starts paying for covered medical expenses.
Copay: A fixed amount paid for a covered medical service, such as a doctor's visit or prescription drug.
Coinsurance: A percentage of the cost of a covered medical service an employee pays after meeting the deductible.
Out-of-pocket maximum: The most money you'll have to pay in covered medical expenses in a year.
High-deductible health plan (HDHP): A type of health insurance plan with a high deductible but lower monthly premiums.
Health savings account (HSA): A tax-advantaged account that can be used to pay for qualified medical expenses.
Flexible spending account (FSA): A tax-advantaged account that can be used to pay for qualified expenses, such as dental care, vision care, and over-the-counter medications.
Understanding these terms is critical so employees can make informed decisions about their health insurance coverage.
Here are some additional tips for employees HR professionals can pass on to employees ahead of open enrollment:
Review current coverage: Take some time to review your existing health insurance coverage and make a list of any desired changes.
Compare plans: If new or expanded plan options are available, read all benefit summaries carefully to understand the differences.
Ask questions: Look to HR-supplied resources and education. Feel free to contact HR if you need additional information.
We believe the best way to help employees feel more empowered and happier about their health and wealth is to help educate them on how to make better decisions. Interested in learning more? Click here to schedule a 15 minute chat now to discuss how SelectSmart might work for you. Or simply call us at 781-583-7017 or email us at sales@savvifi.com.