Open enrollment only happens once a year – it’s important to know your open enrollment dates and how to maximize your employee benefits.
62% of employees say they don’t usually change their health insurance selections from year to year because it’s too stressful.1
32% of employees report being confused about their benefits packages.2
It's nearly that time of year again. Open enrollment is a yearly period when millions of Americans can enroll in or change their health insurance, Medicare, or employer-sponsored benefits.
For many, open enrollment can feel overwhelming — 62% of employees say they don't usually change their health insurance selections from year to year because it's too stressful.1 And, 32% of employees report being confused about their benefits packages.2 There has to be a better way. After all, outside of a qualifying life event, this is the only time to make changes to employer-sponsored benefits or health coverage for the coming year.
Maybe you participate in benefits open enrollment through your employer, or you might be one of the 14.5 million who signed up for coverage in 2022 through marketplace open enrollment health insurance.3 You may also be enrolled in, or recently eligible for Medicare. However you receive your benefits and health insurance — it pays to do a little work up front and be better prepared.
In this article, we'll take a deeper look at what to know about open enrollment before open enrollment 2023 gets underway.
Prepare for open enrollment and maximize your benefits
Open enrollment periods can mean different things to different people. For 49% of the participants in a recent survey conducted by HR software firm Justworks, it means feeling pressured to select the most expensive health insurance option to ensure they have the coverage they need.1
Before your open enrollment begins, think through your current situation so you can select the benefits that fit your needs best now.
When is open enrollment for 2023 health coverage and benefits?
The open enrollment periods for 2023 depend on how an individual secures their benefits and health insurance. If you participate in either Medicare or the health insurance marketplace, the open enrollment period for 2023 is published online. On the other hand, if you receive benefits and coverage through your employer, your open enrollment window is determined by your HR department.
When is my employer’s open enrollment period?
There's no rule for when companies must begin open enrollment. However, most companies schedule open enrollment to start in November and end a few weeks before enrollment forms are due to benefit providers.4 For more details, talk to your HR department or plan provider.
Medicare's open enrollment period
Open enrollment for Medicare runs October 15–December 7 each year.5 Options can change annually so be sure you research what’s available now to meet your needs. Find more information at 1-800-MEDICARE or Medicare.gov.
Marketplace health insurance
Millions of Americans go through the health insurance marketplace to secure health insurance each year. In most states, the open enrollment period for 2023 is November 1, 2022–January 15, 2023.3 These dates change annually, and dates are published online.
Know your open enrollment deadlines
Remember, outside of a qualifying life event, open enrollment is the only time to make changes to your health insurance and employer-sponsored benefits. Setting a reminder on your calendar can help you set aside time to think through your current needs and situation before enrollment begins.
Review your current coverage and benefits — options may change annually
For most of us, reviewing our health insurance isn’t exactly exciting or straightforward. It is, however, important. Here are a few things to consider:
Look at the networks covered by your provider — do they offer the care you need and want?
Think about what’s changed in your life — and adjust your coverage as necessary.
Comparing health plans during open enrollment
When comparing plans, there are typically three main options: PPO, HMO, and HDHP. Here's an overview of each.
PPO – In a PPO, there’s no Primary Care Provider (PCP) referral required, which can mean greater flexibility in finding the care or provider you want, but premiums are typically double that of other plans.6
HMO – With an HMO, premiums tend to be lower, but PCP referrals to specialists are required, and you must see providers within the network.6
HDHP – Like the HMO, HDHP monthly premiums are lower, but deductibles are higher. Currently, about one-third of employer-based health plans are HDHP.6 Typically, employers offering an HDHP pair it with an HSA to help offset employee costs.
HSA – HSAs, or Health Savings Accounts, are connected to HDHPs. With an HSA, employees contribute to their HSA with pre-tax payroll deduction, and funds can be used to pay for expenses such as co-pays and deductibles. Plus, HSA money is yours to keep — even if you switch jobs.6
FSA – The Flexible Spending Account— or FSA, is helpful if you know you'll have out-of-pocket medical expenses each year. Like the HSA, these accounts are funded through pre-tax payroll deductions. The big difference is that FSA money does not roll over year to year, and if you leave your job, you lose any money left in the account.6
For more information on the differences between HSAs and FSAs, watch our "HSA vs. Healthcare FSA" video.
Remember to consider your prescription drug coverage needs
According to one study, approximately 66% of U.S. adults take prescription drugs, and the cost of those prescription drugs has increased by 5% since 2021.7 As you prepare for open enrollment, think about your current prescriptions. Has anything changed in the past year? Investing the time now to look at your prescriptions could help save you money in the coming year.
Are your retirement plan contributions in line with your future needs?
Open enrollment is a great time to revisit your retirement goals and contributions. If it's available to you, consider meeting with a financial advisor. An advisor can work with you to review your goals and make sure you're on track to achieve them. Maybe this is the year you increase your contributions, so you receive your company's match. Every little bit adds up!
Compare premiums, deductibles, and out-of-pocket costs
When comparing your health insurance, it can help to look specifically at premiums, deductibles, and out-of-pocket costs.
Premiums – The amount paid by the employee, employer, or a combination of both for health insurance coverage. Payments are typically deducted monthly from an employee's pay.8
Deductibles – The out-of-pocket costs the insured individual pays each year before health insurance begins covering expenses. You should understand how deductibles are applied to each person covered by your plan, especially for unplanned or emergency care.8
Out-of-pocket costs – This is the maximum amount an individual can expect to pay in a given period, typically one calendar year, for services covered by insurance, including co-payments and co-insurance.8
When it comes to health insurance, it can be challenging to find the perfect fit — low monthly costs or low costs for care. Knowing what you prioritize will help you choose a plan that aligns with your needs.
When to consider supplemental insurance coverage during open enrollment
For some of us, finding the right insurance can be a challenge. Whether your employer-sponsored plan doesn't cover the services you want, or the levels aren't quite right — supplemental insurance coverage may be a good option. Supplemental insurance may also offer a little extra peace of mind.
Employer-sponsored plans or basic coverage may cover routine care. Supplemental insurance covers life's unexpected twists and turns, including accidents, extended hospital stays, cancer treatment, and more.
Supplemental insurance comes in various options, including supplemental health insurance, supplemental life insurance, accidental death coverage, and disability insurance. You can learn even more by reading our article: Types of Insurance for Open Enrollment Season.
Things to consider
Open enrollment options can change annually. Know your open enrollment dates ahead of time to ensure you have the coverage and options you need.
Don’t forget to consider your prescription drug coverage needs.
Be sure to compare premiums, deductibles, and out-of-pocket costs.
Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as insurance, securities, ERISA, tax, investment, legal, medical or financial advice or guidance. Please consult your personal independent professionals for answers to your specific questions.
