Open enrollment is upon us, and it's time for some serious health care benefits decisions to be made across America.
As a broker, what should you keep in mind as you interact with HR departments and business decision-makers in preparation for open enrollment? According to Aflac, a lot.
Aflac conducted a study last month that underscored the lack of understanding among American workers when it comes to health care benefits, and how this influences benefits decisions during open enrollment. The findings showed that:
• More than three quarters (76 percent) of American workers admit to making mistakes about their benefits decisions in the past.
• 42 percent of workers say they have wasted money each year because of mistakes they made with their insurance benefits.
So, what are some of the common mistakes people have admitted making, both financially and otherwise? First, people often misjudge how much money should be put in their flexible spending account. They either short-change themselves or overestimate how much money should be set aside for yearly medical costs. The study also found that people are simply not always aware of all their options, and they neglect to elect either dental, vision or voluntary insurance. Voluntary insurance helps with the costs of unexpected medical emergencies, and HR managers should be sure to emphasize this point with employees.
The study also found that workers have had to make some personal sacrifices to accommodate out-of-pocket medical costs, such as cutting back on social activities, luxury items, and taking a vacation.
So what is the key take-away here? When speaking with HR managers, brokers need to reiterate that employees are not always fully aware of their health care benefits. HR needs to properly communicate benefits options to all workers to help them avoid future open enrollment mistakes.
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