Consumers Must Prepare For Major Changes This Benefit Enrollment
Hewitt Associates Offers Employees Tips on Making Wise
Benefit Selections
September 2004 (Newstream) - In light of continued double-digit
health care cost increases, this year's open enrollment
season will bring an unprecedented level of change and decisions
for employees. Global human resources services firm Hewitt
Associates, which administers benefits for more than 18
million employees and their families, offers these tips
to help consumers understand upcoming changes and get the
greatest return for their benefits dollars.
"This year, employees may feel overwhelmed by how many
complex choices they have to make, but it's important that
they take action," said Jennifer Murphy, health care communication
leader, Hewitt Associates. "If they take the time to look
at their choices and use the many tools and rich content
employers are making available, there's a real opportunity
to tailor their benefits to meet their specific health and
financial needs."
Expect sticker shock. Because health care costs
have risen so dramatically over the past several years,
many people can expect to see a percentage of this increase
passed on to them in terms of higher copays, coinsurance,
deductibles, etc. Be prepared.
Start early. Enrollment may not be as easy this
year as it has been in the past, so you should allow enough
time to gather information and educate yourself on the decisions
you need to make. Don't wait until the last minute.
Take inventory. To determine the health care coverage
that will work best for you, you'll need to know how much
you've spent on health care in the past year and how those
expenses were distributed, and really think through anticipated
expenses for next year. Many companies offer online medical
expense estimators and records of last year's claims that
can help you with this.
Don't assume last year's choices will work. Many
employers have implemented major plan design changes in
light of rising costs. Your old plan may no longer exist,
and new and better options may be available. Also, many
employers who formerly allowed employees to default into
their previous year's selections are now requiring active
enrollment.
Explore health accounts. Employers are offering
many different types of accounts (such as Health Savings
Accounts, Health Reimbursement Arrangements and Flexible
Spending Accounts) to help you pay health care expenses
on a tax-advantaged basis. Make sure you know your options
and how these accounts work to help offset health care costs.
(NOTE: Please see attached comparison chart.)
Avoid the urge to overinsure. Despite the high
cost of health care, many employees continue to opt for
coverage far in excess of what they actually need. Absorbing
a little more risk can have a positive impact on your take-home
pay.
Use open enrollment as an excuse for a complete financial
checkup. Take advantage of enrollment to review your
total retirement and financial situation. Look closely at
your life insurance, dependent care and retirement needs,
and be sure you're using all of the tools and information
out there to help with these choices.
Remember you're not in it alone. Employers are
providing a wealth of tools to help, so make sure you know
what's available to you. Tools like medical expense trackers
and estimators, health plan comparison charts and spending
account projectors can help you decide which coverage is
right for you and how to pay for it.
Don't stop at enrollment. Selecting your benefits
is only half the issue. Many employers offer tools that
help with using your benefits more effectively throughout
the year. Be sure to take advantage of provider quality
and cost data, health management information and wellness
initiatives to keep you healthy and maximize the value of
your health care investment.
About Hewitt
With more than 60 years of experience, Hewitt Associates
(NYSE: HEW) is the world's foremost provider of human resources
outsourcing and consulting services. The firm consults with
more than 2,300 companies and administers human resources,
health care, payroll and retirement programs on behalf of
more than 300 companies to millions of employees and retirees
worldwide. For more information, please visit: www.hewitt.com
.
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Produced For Hewitt Associates
CONTACT:
JoAnne Laffey, (847) 442-7648,
joanne.laffey@hewitt.com
Suzanne Zagata-Meraz, (847) 442-7657,
sszagata@hewitt.com
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