Navigating open enrollment: 5 ways to make the best choices for your family

Open enrollment for your health insurance generally rolls around every fall. It may feel a bit overwhelming, especially as you juggle the responsibilities of work and family life. But with rising insurance costs, taking the time to make thoughtful choices can help you make the most of your money while caring for your family’s health.

Whether you qualify for health insurance through an employer, purchase it yourself on the Marketplace or are navigating the world of Medicare, it’s a good time to reassess your coverage needs.

Here’s a guide with five steps to help you navigate open enrollment with confidence. So you can ensure you’re making choices that reflect your family’s values and needs, and taking full advantage of your benefits.

Health plans change and so do your family’s needs. So while last year’s plan may be right for you again this year, there’s a chance a different plan may serve you better in 2025. Before digging into the details of the plans available to you, review your family’s current and future health needs by following these steps.

Consider approaching this decision like you would if you were creating a budget. Ask yourself, on behalf of you and your family members:

• How often do you typically go to the doctor?
• Do you have a chronic condition?
• What prescriptions do you take?
• Do you anticipate a dental procedure or a medical surgery?
• Has, or will, your family situation change? Will you have a new baby or a child heading to college or the workforce? (Not all family changes require that you wait for open enrollment. Check your plan details if you have a life event after open enrollment season.)

Of course, you can’t anticipate everything, but this is a good place to start.

You may encounter a few health insurance plan options during the open enrollment process.

• Preferred Provider Organization (PPO): Offers better flexibility in choosing your health care provider, including specialists (no referral needed). More likely to have higher premiums and lower out-of-pocket costs if using providers within the network.

• Health Maintenance Organization (HMO): Requires you to choose a primary care physician from a list the HMO maintains and get referrals to see specialists. You may have lower premiums, but you’ll also have less flexibility in choosing who you want to see. Check the network for providers that you may want to keep ahead of your decision.

• Copay Only Plan: Offers more transparency into the costs and quality associated with the cost of care and providers before receiving care or making appointments. All you pay is the pre-determined copay. There’s no coinsurance or deductible.

• High-Deductible Health Plan (HDHP): Likely has higher deductibles and lower premiums. Can be paired with a health savings account (HSA) to cover qualified out-of-pocket costs.

• Medicare: Federal health insurance for people ages 65 and older or those with certain disabilities. It includes:
  
  • Part A: Hospital insurance
  • Part B: Medical insurance
  • Part C (Medicare Advantage): Private insurance alternatives to traditional Medicare, offering additional benefits.
  • Part D: Prescription drug coverage

• Medicaid: Joint federal and state program providing health insurance for low-income individuals and their families.

• CHIP (Children’s Health Insurance Program): Health coverage for children who do not qualify for Medicaid.

• TRICARE: Health insurance for military personnel, retirees and their families.

Do you need to get health insurance coverage on your own? Check out the Marketplace options available in your state by visiting healthcare.gov.

Don’t just automatically keep what you’ve always had. Assess if last year’s plan is still the best choice for your needs, especially more costly family plans. What’s working well? Where are there gaps?

Take the time to compare the benefits, costs and provider networks of each plan offered to you. Make sure your preferred doctors and hospitals are in-network and that your medications are covered.

If you have an adult child who has the option for individual coverage, look at both plans side by side. If you and your spouse/partner each have options, evaluate both. Does it make sense for you to do different plans from your employers or add both of you to one plan? Involve your spouse in the decision process. And, while it may be dry, read the detailed plan information that comes along with your plan. Understanding your current plan’s strengths and weaknesses will help you make better choices.

Both flexible spending accounts (FSAs) and health savings accounts (HSAs) can be powerful tools for helping you manage health care costs. An FSA can provide tax advantages, reducing out-of-pocket health care and dependent care costs. If you have a high-deductible health plan, you are eligible to contribute to an HSA, which allows you to save money tax-free for health care.

When you contribute to an FSA, the dollars are taken out of your paycheck before federal income and Social Security taxes are applied. Because the dollars are taken pre-tax, this reduces your taxable income, therefore reducing your overall tax burden. The withdrawal of the funds for qualified medical or dependent care expenses (these are two separate accounts) also are tax-free.

The health FSA provides you with a way to pay out-of-pocket medical, dental and vision expenses not covered by insurance, including copayments, deductibles, prescriptions and some over-the-counter medications, while the dependent care FSA allows you to pay eligible expenses such as day care, before- and after-school care and summer day camps for eligible children, as well as elder care or care for a disabled dependent.

Other FSA benefits include:

• Immediate access to the entire annual amount you designated at the start of the year. You don’t have to wait until you make the contribution with each paycheck. This can help cover unexpected medical expenses.
• Ability to budget for anticipated health care costs, making it simpler to manage out-of-pocket expenses.

If you’re expecting significant medical expenses next year, an FSA may be a great way to save on taxes. However, it’s important to plan carefully. It’s a “use it or lose it” plan, so any unused dollars you’ve contributed to your FSA may be forfeited at the end of your plan year.

HSAs, which are available only to individuals who are enrolled in high-deductible health plans, offer a triple tax advantage with tax-deductible contributions, tax-free growth and tax-free withdrawals. They also offer flexibility and long-term savings potential, making them a valuable tool for managing health care costs both now and into your retirement.

The triple tax advantage means the money you contribute to an HSA is tax deductible, reducing your taxable income. Contributions are typically pre-tax if made through payroll deduction. The funds in your HSA grow tax-free, which means any interest earned or investment gains in the account are not subject to taxes. And finally, withdrawals for qualified medical expenses—such as deductibles, copayments, prescription medications, dental and vision care and some over-the-counter items—are not taxed. 

Other benefits include:

• Portability. Since it’s owned by you, and not your employer, the funds in your HSA stay with you even if you change jobs or retire.
• Rollover funds. You can roll over any unused funds year after year, and therefore build up savings over time.
• Investment opportunities. These become available when you reach a certain threshold set by your HSA provider.
• Additional retirement savings vehicle. After age 65, you can use HSA funds for non-medical expenses without penalty (although those withdrawals are subject to income tax).
• Flexibility. You can choose how much you contribute annually up to the maximum amount set by the IRS and catch-up contributions for those ages 55 and older.

In 2025, you can contribute up to $4,300 to an HSA if you have individual coverage. The HSA contribution limit for families is $8,550.

Beyond basic health insurance, you also may want to consider a variety of other options that can help protect various aspects of your life, from dental or vision care to your family’s long-term financial security. Your employer may provide some of these benefits, as well as the opportunity to purchase more on top of what they offer. Consider the following:

Covers routine dental care such as cleanings, fillings and more extensive procedures such as crowns, root canals or even orthodontia. You may have opportunities to purchase various levels of care, based on your family’s needs. Employee’s share of the premium often is pre-tax.

Helps cover the cost of eye examinations, glasses and contact lenses. Depending on your policy, it also may help with corrective surgeries. Employee’s share of the premium often is pre-tax.

Life insurance provides financial support to your beneficiaries in the event something happens to you. During open enrollment, you may be able to secure life insurance without undergoing a medical exam, take advantage of group rates, and possibly lock in guaranteed coverage regardless of your health status. Also assess the amount of insurance you have and seek supplemental or additional coverage outside your employer’s basic benefit if needed. 

Disability insurance opportunities may include both short- and long-term disability coverage. Short-term provides income replacement for a limited or set period of time if you are unable to work due to illness or injury, while long-term, depending on the policy, could cover the period of time until you retire.

Review options for supplemental insurance, coverage that complements your existing contract. It’s designed to fill in gaps by providing additional benefits if your current disability policy does not fully replace your income.

Consider accident insurance (provides a lump sum if you’re injured in an accident) or critical illness insurance (offers a lump-sum payment upon diagnosis of a serious illness like cancer, heart attack or stroke. Both of these supplemental policies can help cover medical expenses or lost income.

If you’re the primary breadwinner, these additional health-related coverages—as well as life, disability or supplemental insurance offerings—can help ensure your family is taken care of. In addition to reviewing what’s available to you through your employer or through Marketplace, check in with a Thrivent financial advisor. They can help you determine your needs and your budget for additional coverage.

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As a general rule, you can multiply your annual salary by 10 to determine a reasonable amount of life insurance. But our calculator can give you a more personalized target.

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While a review of your retirement accounts can be done anytime, open enrollment is a perfect opportunity to reassess your retirement savings strategy, especially if you’re contributing to a tax-advantaged employee-sponsored account, such as a 401(k) or a 403(b). Here are some things to consider:

• Maximize your contributions. Review your current contribution level to make sure you’re taking full advantage of any employer match. That’s “free money” for retirement you don’t want to leave on the table. Consider setting up automatic increases annually until you’ve reached the point of saving 10–15% of your salary. Your plan administrator typically has a tool that can show the difference more savings would make over time.

• Review investment options. Review the investment options available in your plan and ensure your asset allocation aligns with your risk tolerance and timeline for retirement. Rebalance as needed, especially if market fluctuations have caused your investments to shift.

• Update beneficiaries. Especially if you have experienced life changes like marriage, divorce or the birth of a child, this is an ideal time to review and update all beneficiary designations. Make sure you have contingent beneficiaries named as well.

• Evaluate tax implications of your contributions. Are your dollars going into traditional pre-tax or Roth after-tax buckets? Consider what is most beneficial based on your current tax situation and future retirement plans.

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Whether you’re considering insurance options with employers, in the Marketplace or with government-sponsored programs, the window to open enroll is typically short, lasting just a few to several weeks. Consider these tips to make the process go smoothly:

• Set reminders. Find out when your open enrollment period begins and ends and mark the deadlines on your calendar, with reminders to ensure you don’t miss out. It’s crucial to enroll within that window. If you miss it, you likely will need to wait until next year’s open enrollment.

• Talk to someone if you need help. Talk to your human resources department, or if you’re over 65 and considering Medicare or Medicare Advantage choices, speak with a licensed agent. Talk to someone who is an expert in that field and can highlight medical and prescription drug considerations. This also can be helpful for people who are the power of attorney for a family member or are helping a family member with their choices.

• Evaluate, validate and don’t procrastinate. Don’t wait until the last minute. If you have questions about coverage or specific providers, call early. Give yourself extra time to enroll in case you encounter technology issues. And once you’ve made your selections, ensure everything is correct.

• Submit your choices on time. Make sure you submit your final selections before the deadline to avoid being automatically enrolled in a default plan.

Open enrollment is your opportunity to make choices that will protect and support your family throughout the year. By taking the time to assess your needs, compare your options, and involve your loved ones in the decision, you can ensure that you’re choosing the best possible coverage for your unique situation. Remember, these decisions are about more than just numbers—they’re about caring for the people who matter most to you. Your family’s health and financial well-being are worth every moment you invest in making the right choices during open enrollment.