If you’re like a third of the population, you probably feel a mixture of annoyance and dread as open-enrollment season draws near. And that makes sense. Health insurance documents can be confusing and that makes it difficult to feel confident in your plan choices. In addition, health insurance policies and what expenses are covered continue to fluctuate due to ongoing impacts from the pandemic and a fluctuating economy and insurance market.

On top of this, many are still working remotely or in a hybrid set up, which means the information you typically receive about your benefits choices from HR may be coming to you digitally, which can be more difficult to navigate.

But fear not, Lively is here to make sure you can get the answers you need. We’ve put together five tips that will make sure you’re prepared for open enrollment so that you can make the best selection for you and your family.

Tip #1: Plan for it

The only way to make the best decision for you and your family when it comes to your benefits is to take the time to understand your options. Make sure you know when open enrollment starts and ends, and then set an alarm. Give yourself enough time to review the materials about your benefit options and ask questions from your human resources team and your benefits providers if they are available.

Tip #2: Make sure you know what’s changed

Even if the name of the health plan and its administrator are the same, the details of the plan could have changed. Possible changes include:

• Cost (i.e. deductible, premium, co-pay, etc.)

• Network (i.e. doctors who are considered in-network and whose care is covered more completely)

• Prescription drug coverage

Before you can compare a new plan to your current one, you have to know how your “current” plan for next year stacks up against your current plan.

One major change that many employers are making is a reduction in the percentage of cost they cover for dependents. So if dependent coverage is important to you, make sure you know what your responsibility will be. If the materials you receive don’t make this clear, ask for a specific breakdown in changes including the associated costs.

If your company is offering new health plans, make sure you understand how they function, the total associated costs, and which healthcare providers are in-network.

Tip #3: Get clear on what you need from your health insurance this year

Take time to assess how you actually used your benefits in the past year. Ask yourself:

• How did you and your family use the health system last year? Was it minimal?

• Do you or a dependent have a chronic issue that requires regular prescriptions or specialist visits?

• Do you anticipate any changes to this in the coming year?

The goal isn’t to have the most comprehensive coverage possible just in case a catastrophic event occurs. That wouldn’t be cost-effective. The idea is to have the right amount of coverage for your needs.

A good way to assess what your actual needs are is to review your receipts from medical providers from the previous year. Most providers now send digital receipts right to your email, but if yours didn’t and you don’t have the paper receipts, look over past bank or credit card statements. You’ll quickly see whether or not you had the right amount of coverage or whether you paid too much out of pocket.

Also consider any life changes. Did you get married? Have a child? Did a child age out of your health plan? Any of these changes might affect the appropriate health insurance plan for your needs.

Tip #4: Look for a plan that might better suit your needs

Now that you know what you need, look at your options. Consider:

• Is there a plan that offers better coverage?

• A wider network of doctors you want access to?

• A plan that offers lower premiums but adequate coverage?

If you’re looking to lower your monthly cost for health insurance and want a way to pay for your out-of-pocket medical expenses pre-tax, consider a High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA).

Tip #5: Consider benefits that support financial wellness or reduce costs

If your company offers a 401k, IRA, or an HDHP/HSA combination, these are all ways you can start saving for the future. Traditional retirement accounts like 401ks and IRAs take pre-tax money from your paycheck (thus lowering your tax burden) and put it into an investment account. You can start accessing this money when you’re 59 ½ years old. You will pay the appropriate income tax rate on your disbursements at this time.

HSAs function a little differently. You still deposit the money pre-tax, you can still invest said money, but you can access it tax-free to pay for qualified medical expenses at any time you want. Once you turn 65, you can use the money on whatever you want and any money used for something other than medical expenses will be subject to the appropriate income tax rate. Money used for qualified medical expenses remains tax-free.

Other benefits that might reduce costs are wellness programs and post-tax accounts like Lifestyle Spending Accounts (LSAs), Medical Travel Accounts, and commuter benefits. Some companies offer a reduction in health insurance premiums as an incentive to participate in a fitness challenge or to quit smoking, or something similar. Others use LSAs to support professional development, personal and financial wellness, and to cover expenses related to remote and hybrid work or event coming to the office. So if those are something you’re interested in, ask your HR department about your options.

Open enrollment doesn’t need to be a time of trepidation. It’s actually a time of opportunity! It’s the opportunity to get better health coverage. The opportunity to refine your plan for the future. The opportunity to get a better handle on your budget. Just make sure you make a plan and do the research so you can make the choices that make the most sense for you and your family.