What to Know:
• Most workers don’t spend much time considering their benefit offerings during open enrollment.
• This year could be different, with costs noticeably higher.
• Here are some key tips and strategies to make the most of your employer-sponsored plan.
Costs are Rising:
The cost of health care has been rising steadily for years. More recently, there has been a noticeable jump. For employers, those cost increases are reaching a post-pandemic high, according to WTW. U.S. employers project their health-care costs will increase by 7.7% in 2025, compared with 6.9% in 2024 and 6.5% in 2023. Because of higher costs, employers are considering new ways to adjust their plan offerings.
Consider Your Health-Care Expenses:
When weighing options, use previous years as a guide, advised Gary Kushner, chair and president of Kushner & Company, a benefits design and management company. You should consider: "Am I a low-, medium- or high-claims family? Did I have an incident that required acute care or basically lots of preventative care?"
Health Savings Accounts:
Along with a high-deductible health insurance plan, more than 50% of employers also offer a health savings account, or HSA, which can help with additional health-care costs. The IRS defines "high-deductible" as at least $1,650 for self-only plans or $3,300 for family coverage for 2025. The IRS also determines the maximum allowed contribution each year.
Life and Disability Insurance:
During open enrollment, employees may also be presented with different disability and life insurance options, which are often included in a standard benefits package. Employer-issued life insurance policies typically amount to a year’s salary. You can buy additional life insurance through your employer. This is called supplemental life insurance, or voluntary life insurance, and it’s optional coverage that you can add to your employer’s basic group policy.
Take Advantage of Voluntary Benefits:
Additional benefits may be optional but equally important these days, particularly when it comes to well-being. Going into open enrollment, nearly 1 in 5 employees cite deteriorating mental health, according to a recent report by Gallagher. "More so than ever we are seeing employers looking to address the broadening needs in their workforce," said Tom Kelly, principal in the Gallagher health and benefits practice, and "today’s employees are looking for more holistic wellbeing support."
Conclusion:
With costs rising, it’s essential to take a closer look at what’s at stake during open enrollment. Consider your health-care expenses, weigh the benefits, and make the most of your employer-sponsored plan. Take advantage of voluntary benefits like health savings accounts, life and disability insurance, and wellbeing initiatives to improve your overall well-being.
FAQs:
Q: What are the key tips and strategies for making the most of your employer-sponsored plan?
A: Use previous years as a guide, consider your health-care expenses, and take advantage of voluntary benefits like health savings accounts, life and disability insurance, and wellbeing initiatives.
Q: What are the rising costs for health-care?
A: The cost of health care has been rising steadily for years. In 2025, U.S. employers project a 7.7% increase in health-care costs.
Q: What are some voluntary benefits that employees can take advantage of?
A: Health savings accounts, life and disability insurance, and wellbeing initiatives, such as financial coaching, stress management classes, and discounts on gym equipment.
