The 4 Biggest Mistakes People Make During Open Enrollment—and How to Avoid Them

Open enrollment season is a critical period for employees to review and update their benefits elections. However, many people make common mistakes that can lead to regretful decisions. By understanding these missteps and learning from them, employees can make more informed choices during open enrollment. This article will explore the four biggest mistakes people make during open enrollment and provide strategies to avoid them.


1. **Waiting until the last minute**
Procrastinating on researching your options during open enrollment can lead to uninformed decisions. According to a survey by Justworks and The Harris Poll, nearly half of millennials and Gen Z adult workers are confused about their health-care insurance options and make regretful choices as a result. To avoid this mistake, start early and take advantage of resources provided by your HR department, such as Q&A sessions, town halls, and print materials.

2. **Assuming the most expensive option is best**
Choosing the most expensive health plan does not guarantee the best coverage. It's essential to assess your specific health needs and anticipate future expenses. Consider factors such as past health costs, anticipated procedures, prescription drug costs, and your risk tolerance. High-deductible health plans (HDHPs) paired with a health savings account (HSA) can be a cost-effective option for those with minimal health coverage needs.

3. **Ignoring Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)**
HSAs and FSAs offer tax benefits and flexibility in covering qualified medical expenses. However, many employees overlook these accounts during open enrollment. To make the most of these benefits, learn about the differences between HSAs and FSAs, and determine which one best suits your needs. For example, HSAs provide a triple tax benefit, while FSAs require you to use the funds within the year or risk losing them.

4. **Not learning from past mistakes**
Reviewing your previous elections and adjusting them as needed can help you avoid making the same mistakes year after year. Life events, such as marriage, divorce, or the birth of a child, can significantly impact your benefit needs. Take the time to assess your current situation and make changes accordingly.


By being mindful of these common mistakes and taking proactive steps to avoid them, employees can make more informed decisions during open enrollment. This will not only help them save money but also ensure they have the appropriate coverage for their needs.