Research health coverage, other benefits

Choosing the right health insurance plan is one of the most important decisions Americans make every year — but most of us spend more time planning a vacation or shopping for a computer than we do selecting benefits.

According to the 2014 Aflac Open Enrollment Survey, 41 percent of American workers spent 15 minutes or less researching their benefit options during open enrollment, and 24 percent spent five minutes or less.

In contrast, according to the Zillow Mortgage Marketplace Survey, Americans typically spend much more time researching the purchase of a new vehicle (10 hours), a new computer (4 hours) or a new TV (2 hours).

Unfortunately, workers who don’t set aside sufficient time to research their insurance and benefits options may make hasty decisions and end up wasting their hard-earned money. According to the Kaiser Family Foundation 2013 Employer Health Benefits Survey, employees spend an average of $4,565 a year in premiums for employer-sponsored health plans. Even though life circumstances change and benefits options may change, according to the Aflac survey, the majority — 90 percent — of workers choose the same benefits year after year.

By not taking the time to understand their benefits choices, workers may find themselves faced with a financial crisis and be unprepared to cope with unexpected medical expenses. In fact, the Aflac survey found that 42 percent of workers estimate that they waste as much as $750 each year on mistakes with their insurance benefits.

The survey also found that 73 percent of workers say they sometimes, rarely or never understand everything that is covered by their policy. Sixty-four percent say they sometimes, rarely or never understand the changes in their policies.

It’s important for people to educate themselves about their health care options to ensure they select the right insurance coverage.

Consider these four tips to avoid making costly mistakes:

1. Carefully review and compare all available benefits information. Take time to look up terms you don’t understand, such as voluntary insurance, deductibles, out-of-pocket expenses and others.

2. Understand the financial implications your choices have on your budget.

3. Ask your employer to arrange meetings with health care insurance agents or brokers to answer questions.

4. Attend on-site seminars, participate in webinars and read the relevant education materials.