Go In With Confidence This Year

It’s that time of the year again...Benefits Open Enrollment! Now more than ever we see how important our health is. Not only taking COVID-19 into consideration, but all the effects it has caused.

First off, what is open enrollment? It is an annual period where you are able to enroll or make changes to your employee benefit plans. This includes:

• Health Insurance

• Dental Insurance

• Vision Insurance

• Life Insurance

• Disability Insurance

• HSA or FSA Insurance

• Dependent Care Accounts

This year commit to being prepared and go in with confidence by reviewing every benefit your company offers.

Sometimes it is difficult to predict the future, but this year we are coming from a different place. It is time to be forward thinking and intentional about your health care.

Health and Dental Insurance

Lots of things have changed in the last 12 months.  You need to think about the needs of your family and what options you have for health care if there is more than one income earner in the home. Compare plans with the needs of your family plan in mind.  See which plan either saves you most money or offers the best coverage.  Be sure to consider in and out of network doctors in your decision.  

One thing that has impacted millions is our routine health checks or scheduled procedures. Many of us have either pushed off our medical appointments due to financial strains, had our appointments cancelled, or just plain forgot since being in quarantine. Take all of these into consideration when choosing your health plan for the upcoming year because you may spend time and money catching up on these appointments.  If you or your spouse need extensive dental work then maybe it is wise to choose the premium dental plan for 2021. Remember it is always better not just financially but also for your overall health to take a preventative approach instead of waiting for an emergency to strike.

Life Insurance

You may be surprised, but I often recommend using the life insurance your company offers at work. Many times this is more bang for your buck. Try to get as much life insurance from work as you can even if it means a health screening. Group plans are so much less expensive than the open market. Review the total coverage you have and be sure you are covered for 8 to 10 times your income especially if you have dependents.

Disability Insurance

Let’s begin by saying, you probably have limited options for disability insurance inside the workplace.  Confirm that you understand what is available no matter what.  If you are considering having surgery or expecting a baby you may need some disability time and paying a little extra for more time or greater coverage may be a wise move.

Dependent Care Accounts (DCAs)

Dependent care accounts (DCAs) allow married couples who pay for child care to save before tax dollars up to $5,000 per year for dependent care expenses. You can access the account for reimbursements with your receipts and/or pertinent documentation for child care, nursery school, or at-home care for dependents. If you put $5,000 for the year 2021 or $416.67/month into this account it will come out of your paycheck prior to taxes. Therefore, your taxable income is reduced by $5,000 for the year. Not only is it an automatic savings account, but it is advantageous on your tax returns. Be sure to only designate the exact amount you will need because the funds do not roll over to the next year.

Flexible Spending Account (FSA) and Health Savings Account (HSA)

Flexible spending accounts are pre-tax savings accounts for health care needs.  You can pay for prescriptions, co-pays, and other out of pocket costs with these funds.  Many companies have a debit card to use these items but sometimes you will need to be reimbursed.  Either way using this account saves you taxes.  Just remember that these funds do not roll over from year to year.  Plan for only the amount you will use in 12 months.

HSAs are nice because they are savings accounts that grow tax-deferred if you don’t use it today for out-of-pocket medical expenses.  These accounts are win-win.  Save for potential medical today or allow the funds to grow for your future.  And you can earn interest on these dollars!  The maximum you can contribute in 2021 is $3600 if you are single and $7200 if you are married.  You can keep this account until you turn 65 at which point you can use the money for anything you desire after you pay the taxes!

Let’s go into 2020 prepared! If you have any questions or want help deciding on your own benefits, schedule a time to chat here. Let the Enrollment Season Begin!