Fall means more than cooler weather and changing leaves. For many families, it also means open enrollment season.
Whether you're reviewing benefits through your employer or preparing for Medicare Open Enrollment, this is an important opportunity to make sure your coverage still fits your needs and your overall financial plan.
One of the easiest things to do is simply select the same benefits you had last year. But a lot can change in twelve months your health, income, family situation, medications, and financial goals.
Before you automatically renew, here are a few areas worth reviewing.
1. Compare Your Health Insurance Options
Start with more than just the monthly premium.
Look at the deductible, copays, coinsurance, prescription coverage, provider network, and maximum out-of-pocket costs.
A plan with a lower premium isn't necessarily the least expensive option once you consider how you actually use healthcare.
Think about what happened over the past year and what you expect next year. Planned procedures, new prescriptions, specialists, or changes in your family can all affect which plan makes the most sense.
2. Don't Overlook Your HSA
If you're eligible for a Health Savings Account (HSA), it can be an important part of your overall financial strategy.
HSAs offer significant tax advantages: eligible contributions can receive favorable tax treatment, funds can potentially grow tax-deferred, and qualified medical withdrawals are tax-free.
Unlike a traditional Flexible Spending Account, HSA funds can generally remain in the account from year to year.
For some people, an HSA isn't just a way to pay today's medical expenses it can also become another tool for preparing for healthcare expenses in retirement.
3. Review Your Life and Disability Insurance
Many employers provide basic life and disability insurance, with options to purchase additional coverage.
Open enrollment is a good reminder to ask whether your current coverage is actually enough.
If your income has increased, you've purchased a home, gotten married, had children, or taken on new financial responsibilities, the coverage you selected several years ago may no longer match your needs.
Also remember that employer-provided coverage may not always follow you if you change jobs.
4. Check Your Retirement Plan
While you're reviewing your benefits, take a look at your retirement plan too.
How much are you contributing? Are you receiving the full employer match available to you? Does your investment allocation still match your goals and risk tolerance?
If your income has increased but your retirement contribution hasn't changed, this may be a good opportunity to revisit your savings rate.
Small increases made consistently can have a meaningful impact over a long period of time.
5. Review Medicare Coverage
For those on Medicare, Medicare Open Enrollment runs from October 15 through December 7 each year.
This is an opportunity to review Medicare Advantage and Medicare prescription drug coverage for the coming year.
Don't assume that because your current plan worked well this year, it will automatically be the best fit next year.
Premiums, drug formularies, pharmacy networks, provider networks, deductibles, and other costs can change. Your healthcare needs can change too.
Reviewing your coverage annually can help identify whether your existing plan still fits your situation.
6. Look at the Entire Benefits Package
Depending on your employer, open enrollment may include benefits beyond health insurance.
You may have access to dental and vision coverage, disability insurance, supplemental life insurance, dependent-care benefits, legal services, or other programs.
Not every benefit is necessary for every person. The goal isn't to sign up for everything available. It's to understand what you're being offered and determine what fits your family's needs.
Benefits Are Part of Your Financial Plan
Open enrollment shouldn't be viewed as just another HR task.
Your health insurance affects your cash flow. Your HSA can affect your tax and retirement strategy. Your life and disability insurance protect your family's financial plan. Your retirement contributions help determine what your future may look like.
These decisions are connected.
Before you click "submit" on this year's benefits elections, take a few minutes to review what has changed in your life and whether your benefits still support your financial goals.
At Northern Peak Financial, we believe financial planning goes beyond investments. It's about making sure all the pieces of your financial life are working together.
If you'd like to review how your workplace benefits, retirement accounts, insurance, or other financial decisions fit into your overall plan, we're happy to help.