Open Enrollment

This is where I see a few people make errors that haunt them for the following year.

Health-care options:

Please do not choose this quickly and do not wait until the last minute. I suggest that you review what you actually paid for in 2024 – medical, dental, prescriptions, optical and other needs. Now you have an idea of your historic expenses. Do you have any major procedures coming up – medical or dental? Now match the various health plans offered.

If you are healthy, a high deductible health plan (HDHP)  might be a good fit. They come with lower monthly premiums because they do not cover the first $X of medical costs (every plan has a different deductible). I like to partner these with a Health savings account (HSA), which is a pretax savings account for future (no time limit) medical bills. Once you have a certain amount of money in the account, it can earn interest or dividends. I have personally saved money to help offset my medical expenses when I retire. Note that you must have a HDHP plan to have a HSA  – Medicare does not qualify.

Flexible Spending Accounts are another type of pretax savings for medical expenses BUT the money must be used up by the end of the year. Note that some employers will allow you to roll over a set amount.

Legal Plans: If you do not have a will and the legal plan will cover the cost – I recommend that you enroll. I believe that every adult needs a will, health care power of attorney and a living will. If you have any health issues, I would add a general power of attorney to that list.