Reuters: Open Enrollment Q & A

1) What are most important items for employees to consider as they approach open enrollment season in the era of COVID-19?

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Reuters: Open Enrollment Q&A

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Tuesday, 10/6/2020: Barnum participates in the Open Enrollment #ReutersBenefits chat featuring Eric Nadeau, VP of Barnum Benefits and Brian Parmelee, VP, Risk Management of Barnum Financial Group.

3 Key questions for employees to ask approaching open enrollment are: What are the changes in the plan? How are my providers affected by the changes? How will my paycheck be impacted? Employees need to be comfortable with digital platforms with COVID restrictions.

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2) Please explain the key factors employees should think about when selecting healthcare coverage for the coming year. Should they consider the costs associated with COVID-19 testing and treatment? Anything else?

COVID testing should undoubtedly be covered at 100%. Many companies have included the treatment of COVID as well, but employees should still check with their specific plan to confirm.

#ReutersBenefits

3) What are the biggest mistakes employees make during open enrollment season?

The biggest mistake is doing nothing, assuming benefits will be “about the same” as last year. Many companies are adjusting to increased costs and reduced work forces, which means they may have to make changes to their benefits to keep functioning.

4) What tips do you have for selecting pre-tax benefit options, such as flexible savings accounts, health savings accounts, and dependent care accounts? What is the best way to figure out the math?

The tax benefits and “forced savings” associated with both FSA and HSA can be very beneficial. Even a simple $50 contribution to an HSA per paycheck can create a large balance in the future. Also, FSA must be spent while HSA can carry to the next year.

5) How should workers approach disability insurance in a pandemic? How much coverage do employees need?

Get as much as you can afford! Keep in mind you will owe tax on group DI benefits, while if you own an individual policy, benefits are tax-free. At a minimum, you have to cover your MUG (mortgage, utilities, groceries).

6) Does it make better financial sense to buy life insurance through an employer or to shop around?

As long as you can pass a medical exam, ALWAYS shop around. It is generally more affordable, and the insurance follows you to new jobs. More importantly, you can obtain much more coverage. Is 2x salary enough so your family doesn’t have to change any lifestyle? Pay for college?

7) Given the recent volatility in the markets, how should workers approach retirement benefits now?

Do the math out. Volatility has zero impact on sequence of returns. Keep investing if you can afford to do so. If you are concerned with your investments, reach out to your financial advisor, and a second set of eyes on allocation will be free of charge.

8) Non-traditional benefits are an important aspect of job satisfaction, especially among millennials. What benefits matter most to workers now?

These can include flexible work schedule, PTO, paid volunteer time (polling stations?), and remote work options. Many of these benefits are important for employees who need flexibility. Companies that offer such benefits show they value and trust their employees.

9) Can you discuss the value of wellness programs? Do they help workers save money – and lead to healthier outcomes?

Both physical and mental health are essential for overall well-being. This can be accomplished through education, communication and a supportive work environment. Benefits often include weight loss and stress management. Healthier yes, but also a money saver!

10) The pandemic is challenging workers from every angle. How can employees maximize mental health options now?

Mindset can be one of the most important paths to awareness and better mental health. Be aware of what your firm offers, and don’t hesitate to use available options that can help. At Barnum, we frequently bring in external experienced speakers, too.