Health insurance open enrollment strategies for employees and employers

As the annual health insurance open enrollment period approaches, experts and data suggest specific strategies for employees and employers to optimize coverage and costs.

For employees, financial planner Jackie Cummings Koski advises against automatically renewing previous years' plans. Because premiums, deductibles, and provider networks can change annually, individuals should compare all available options. While lower premiums can assist with monthly budgeting, they may be offset by higher deductibles or out-of-pocket costs if frequent medical care is required. High-deductible health plans may serve as a cost-effective option for generally healthy individuals who rarely visit doctors.

Data from a WEX survey of nearly 60,000 participants highlights the need for varied educational approaches. While some employees feel highly confident in their understanding of benefits, approximately 34% reported confidence levels of 7 or less on a 10-point scale. The survey indicates that employees are primarily motivated by benefits that support family needs, such as retirement preparation and childcare. Key areas where employees seek more education include Health Savings Accounts (HSAs), Lifestyle Spending Accounts (LSAs), and pet insurance.