3 Big Risks You Take by Skipping Open Enrollment

One of the major mistakes I often see employees make is neglecting the annual open enrollment period. How? by not reading HR emails, overlooking the benefit materials, and failing to attend the open enrollment sessions. Even when they do attend, many continue working during the session, missing out on crucial information.

The most common reason I hear is, "I’m so swamped with work! I don’t have time to go through all those materials or attend the sessions." But here’s the truth: work is a never-ending story, while our health has its limits. Nothing is more important than your health and ensuring a solid financial cushion when your health is compromised.

 Let's take a look at what might happen if you neglect the annual open enrollment:

1. You can risk missing the deadline.

What happens if you miss the deadline? You can either lose your coverage or, if your current health plans are automatically rolled over to the next benefit year and you have not made any changes, you will end up with benefits that no longer suit your needs.

Once the open enrollment is gone, you will not be able to make any changes to most of your benefits until the next annual open enrollment. The only time you can change your benefits during the benefit calendar year is when you experience a qualifying life event (marriage, divorce, legal separation, the birth or adoption of a child, etc.), which usually allows you to make changes within 30 days. Check your company’s benefits guide for specific details.

2. You risk facing an unpleasant situation in the future.

Let me illustrate this with two real-life examples from my experience.

Situation 1: In one of the companies where I worked, our medical provider was changing our health insurance group number. All employees were expected to receive new medical insurance ID cards by January 1st. This information was communicated to the staff through multiple emails, reminders, and open enrollment sessions. 

One Saturday morning, I received a phone call from a department head, let's call him John. He was hysterically screaming because his son had gotten into an accident. When they came to the ER, John discovered his medical insurance had been canceled. It turned out that the employee’s insurance was not canceled. John just provided his old insurance ID card which had been deactivated. This situation occurred because the employee had not read any open enrollment emails, had not attended any benefit sessions, and had no idea he was supposed to receive a new medical card. Even though one call to the medical provider resolved the issue, the employee unnecessarily put himself - and me - through a very stressful situation.

Situation 2:  Another employee went to her dentist for a procedure that typically cost her nothing. However, she was unpleasantly surprised to receive a $300 bill afterward. The reason? Her company had changed dental providers, and her dentist was no longer in-network. Because she hadn’t read any open enrollment emails or attended any sessions, she had no idea about the change and ended up paying out-of-network charges.

3. You risk missing out on selecting more cost-effective plans or contributing to FSAs that could save you money. You might also lose out on new benefits that could greatly support you in the future. 

Here’s another example: During an annual open enrollment, our company introduced a new supplemental short-term disability (STD) insurance plan. While the company also offered a basic STD plan, the supplemental plan provided 100% of an employee's base salary for up to 16 weeks of medical leave - a significant benefit at an affordable monthly premium.

A few months later, one of our employees had to take medical leave due to a serious health condition. They applied for the company’s basic STD insurance, which was initially denied, leading to an appeal process. The employee had no idea about the supplemental STD plan that could have provided him with a crucial financial cushion during such a challenging time.

Staying informed during the annual open enrollment period is important for several reasons:

• Stay Updated on Changes: 

Learn about changes or updates to the company’s insurance providers, health plans, and new benefits. This ensures that your coverage fits your current needs.

• Make Timely Adjustments:

Being aware of the enrollment deadlines allows you to make any necessary changes to your benefits on time, avoiding lapses in coverage or unexpected costs.

• Discover New Benefits:

New benefits introduced by the company could be invaluable in the future. Staying informed helps you take full advantage of these opportunities.

• Get Expert Guidance:

The open enrollment period is the perfect time when you can ask questions and clarify benefit information with your benefit specialists or HR representatives. This ensures you fully understand your options and make the best decisions.

• Prioritize Health and Financial Wellness:

By actively participating, you prioritize your health and financial wellness. This proactive approach helps you build a reliable financial cushion for challenging times.

Staying informed during open enrollment ensures you make the best decisions for your health and financial well-being.

🔔 If you find this post useful, share it with your network. Your support could help someone navigate a tricky workplace situation.

If you need guidance on your current workplace situation, I am here to help! 

📅 Schedule a call with me by visiting the "Work With Me" page.

✍ DM me if you have any questions!