2023 health insurance: how to take advantage of the open enrollment period

2023 health insurance: how to take advantage of the open enrollment period

  • Some employers have started their enrollment period for their health insurance. In Globe Live Media we explain why it is good to take advantage of it

Starting with the third quarter of the year and the one that will end with 2022, some companies are beginning to celebrate their annual open enrollment period, which serves so that employees can sign up for their health insurance coverage that they will have for the year 2023.

It’s vital that employees think through what’s best for them and consider any other benefits, if offered by their employer. And it is that some may offer some extras such as life or supplemental disability insurance, others grant pet insurance and others help their employees pay some education costs.

“People tend to [review] their benefits very quickly,” said Paul Frontstin, director of health benefits research at the Employee Benefits Research Institute. “I think the most important thing is that you really look at what’s on offer,” he added.

During the open enrollment period for all employees, workers have several options to choose from, including a high-deductible health plan, which in 2023 means one with a deductible of at least $1,500 for individual coverage and $3,000 for individual coverage. for a family plan.

The higher a deductible, the lower the monthly premiums may be than other coverage options.

For 2023, some of the changes that are going to be seen are in high-deductible plans that are related to a health savings account, or also called an HSA, for its acronym in English. These accounts have a triple tax benefit: contributions are made before taxes, investment growth is not taxed, and withdrawals spent on qualified medical expenses are also tax-free.

The limits that have been established for 2023 to make contributions to an HSA will be $3,850 dollars for individual coverage and $7,750 dollars for family coverage. For those who are not offered an HSA as a benefit, another option that a company can give its employees is a health flexible spending account, also called an FSA.

Money contributed to FSAs is made on a pre-tax basis and is used to cover medical expenses that may be needed. For 2022, the contribution limit has been $2,850 per employee. The amounts that will remain for 2023 are still unknown, as they have not been announced.

“You have to think carefully about how often you go to the doctor, how much your maintenance medications cost,” Frontstin said in an interview with CNBC. “You could end up losing at least part of [your contributions], depending on how the FSA is set up,” he added.

According to research by Aon, US employees have contributed an average of $4,412 toward their health insurance in 2022, of which $2,520 was paid in premiums and $1,892 through cost-sharing, such as deductibles, copays and coinsurance.

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