Five Actions To Prepare For Health Care Open Enrollment

I was more than 5,000 miles from home when my wife called. I was on a business trip to Sao Paulo, Brazil, just weeks after our daughter was born, when she called to tell me our daughter wasn’t on our health insurance. With only one day to spare, I used the hotel fax machine to enroll her just before the window closed. If you’re like me, healthcare open enrollment always catches me by surprise and often feels like a rushed decision. This year, let’s get ready and prepare for what’s coming. 

Open enrollment is the window of time when you are permitted to make changes to your health care plans, either through your employer or government providers such as healthcare.gov. If you miss the window, you will likely be ineligible for health insurance and risk bearing significant costs if you have a medical event or need costly prescription drugs. To avoid this, consider these five simple actions you can take to get ready for health insurance open enrollment.

​Action #1 Know your deadlines and mark your calendar

Most employers will post the open enrollment period on their website or other company communications. You might even get a flier in the mail preparing you for the upcoming enrollment period. Take note of the dates and mark them on your calendar. Those are dates you don’t want to miss.

For healthcare.gov, the open enrollment period is November 1 through December 15 if you need coverage beginning January 1. If you miss the December deadline, you can still enroll by January 15 and get coverage that begins February 1.

​Action #2 Review your current health status

​Before choosing a healthcare plan, review this past year’s doctor visits, medications, and out-of-pocket costs to see if your current plan served you well. This includes understanding how your expenses matched with your deductibles and out of pocket maximums. Now is a good time to organize receipts, invoices, and EOBs even if they’re still in a pile of unopened mail.

​Action #3 Anticipate upcoming changes to your health status

​Before you enroll, consider any changes to your health you expect next year, like getting married, having a baby, planning a surgery, or managing a long-term condition. In fact, if you discover you are close to meeting your deductible this year, you might consider scheduling your surgery or procedure this year and avoid the expense next year.

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Action #4 Do your research and run the numbers

​Most businesses release next year’s healthcare plans before enrollment. Use this time to compare the offered plans with your current health status that you assessed in Action #2. Review each option carefully and understand their differences. Make sure that your doctor participates in the plan and your current medications are covered. To help you determine the best option financially, consider using our Health Insurance Optimizer.

Action #5 Get familiar with tax-advantaged accounts

​A health savings account can be a great resource. If you choose a high-deductible plan, you can open an HSA, which allows you to save money before taxes for medical expenses. The money can grow without being taxed and can be invested, making it a helpful option for your family. Keep in mind though that high deductible plans will mean higher out of pocket costs. For families, this can mean as much as $7,000 per year to meet your deductible. If this is your first year starting an HSA, you will want to at your budget and plan to save at least as much as the health plan’s deductible. 

Conclusion

​While it’s tempting to wait, preparing now for healthcare enrollment will save you time and provide peace of mind later. Consider the wisdom of planning from Proverbs.

"The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty."​Proverbs 21:5 (ESV)  

​Don’t wait until the last minute looking for a fax machine 5,000 miles away from home. Be diligent and take time now to get ready for your healthcare choices.