FridayOL

Get ready, Kiwis! Open enrollment is just around the corner – and it's your golden opportunity to review and adjust your employee benefits package for 2025. For many of us, this is the *only* chance we get all year to make changes to things like health insurance, life insurance, and other crucial perks. Don't miss out on ensuring you have the cover you need, at a price that works for you.

But navigating open enrollment can feel a bit overwhelming. There's a lot of jargon, and it's easy to get lost in the details. That's why we've put together this guide to help you understand the key terms and make informed decisions about your benefits. Let's break it down.

Key Terms You Need to Know

• Open Enrollment: This is the designated period each year when you can enroll in or change your employee benefits, typically during autumn.
• Premium: The amount you pay regularly (usually monthly) to maintain your health insurance coverage. Understanding how premiums are calculated is key to budgeting.
• Deductible: The amount you have to pay out-of-pocket for covered healthcare services before your insurance kicks in. Lower deductibles usually mean higher premiums, and vice versa.
• Co-pay: A fixed amount you pay for specific healthcare services, like a doctor's visit or prescription.
• Co-insurance: The percentage of covered healthcare costs you pay *after* you’ve met your deductible. For example, if your co-insurance is 20%, you’ll pay 20% of the cost, and your insurance will cover the remaining 80%.
• Network: A group of healthcare providers (doctors, hospitals, specialists) that your insurance company has contracted with. Using in-network providers typically results in lower out-of-pocket costs.
• Out-of-Pocket Maximum: The maximum amount you’ll have to pay for covered healthcare services in a plan year. Once you reach this limit, your insurance covers 100% of covered costs.

Making Smart Choices

Here's how to make the most of open enrollment:

• Review Your Current Coverage: Are your current benefits still meeting your needs? Consider any changes in your health status, family situation, or financial circumstances.
• Compare Plans: Don't just stick with what you know. Take the time to compare different plans offered by your employer. Look at premiums, deductibles, co-pays, and co-insurance.
• Consider Your Healthcare Usage: If you frequently visit the doctor or take prescription medications, a plan with lower co-pays and a lower deductible might be a better choice, even if the premium is slightly higher. If you're generally healthy and rarely need medical care, a high-deductible plan might save you money.
• Factor in Preventative Care: Most health insurance plans cover preventative care services (like annual check-ups and screenings) at no cost to you. Take advantage of these benefits to stay healthy.
• Don't Procrastinate: Open enrollment periods are usually short, so don't wait until the last minute to make your decisions.

Resources to Help You

Your employer's HR department is a great resource for information about your benefits. You can also find helpful information on the websites of health insurance providers and government agencies. Take the time to understand your options and choose the benefits package that's right for you and your whānau.

Nāku no,

Your Financial Wellbeing Team