How does open enrollment work?

Open enrollment is an annual period when employees can change their benefit selections for the following year.

Open enrollment is a specific timeframe during which employees have the opportunity to review and make changes to their health insurance and other benefit elections for the upcoming year. During this period, employees can switch health insurance plans, add or drop coverage for dependents, or enroll in new types of benefits such as dental or vision insurance. It's important to note that once the open enrollment period ends, changes to benefit selections are usually restricted until the next period, unless there is a qualifying life event like marriage or the birth of a child. Employers typically provide information sessions and resources to help employees understand their options and make informed decisions.

Imagine you work for a company that offers health, dental, and vision insurance as part of its benefits package. Every October, your company holds an open enrollment period where you can review the insurance plans they offer for the next year. Maybe you've been on the basic health insurance plan, but during open enrollment, you learn there is a new plan that better fits your family's needs. You decide to switch to this new plan and also realize you need to add your newborn to the dental plan. You make these changes during the open enrollment period, ensuring that all new coverage starts on January 1st of the following year.

Don't wait until the last minute to review your benefit options during open enrollment. Start by making a list of your healthcare and other benefit needs, such as pharmacy requirements or upcoming surgeries. Attend any informational meetings your employer offers and use the resources available, such as benefits counselors or comparative guides, to understand your choices. Also, take into account any changes in your personal or financial situation that might affect your benefit decisions, and always double-check that your selections have been properly submitted before the deadline.