Understanding Open Enrollment

Understanding open enrollment can make the difference between receiving the health care you need and struggling with health care bills that result from enormous hospital and doctor bills. Open enrollment is the term employers use to designate the period during which you can make changes to your group health plan and tax savings accounts, such as flexible spending accounts and dependent care accounts.

Open Enrollment Period

• Open enrollment periods are generally scheduled for a period of at least 30 days during the last quarter of the calendar year. Depending on the size of the workforce and the number of insurance options your employer provides, the period could be longer than 30 days. Planning open enrollment period is a lengthy, arduous process for employers. It requires an assessment of what employees currently have in the way of benefits and what the company can provide for the upcoming year. Open enrollment season is one of the busiest times of the year for compensation and benefits specialists.

Open Enrollment Changes

• Changes to your employee benefits can be made only during open enrollment period, which is the reason it's important to understand how open enrollment works. Employees use this time to review their health coverage options, deductibles, availability of medical providers with whom they feel comfortable and employee contributions. In addition, you must make decisions about wages set aside for flexible spending, health care savings and dependent care accounts that can reduce your taxes. Changes you make during open enrollment become effective Jan. 1.

Qualifying Life Events

• Aside from open enrollment season, the only other time employees can make changes to their benefits selections is with a qualifying life event. Marriage, divorce, childbirth and adoption, retirement and changes to work hours are included in the list of qualifying events. Your employer can provide you with a comprehensive list of events that permit you to make changes to your employee benefits.

Useful Information

• Before open enrollment season begins, employers announce the importance of gathering materials necessary to make wise choices. Some employers conduct meetings to explain the purpose of open enrollment and respond to employee questions about benefit changes. Your medical and financial information from the current year and previous years will simplify the enrollment process. Information about frequency of doctor visits, hospitalizations, anticipated medical procedures, money spent on prescription drugs and childcare expenses are the types of documents that will help you determine if you need to make changes to your current coverage. If your employer is offering a new group health plan, this information will help in comparing the advantages of one benefits package over another.