During open enrollment, these moves can help lower post-pandemic high health-care costs.

• This year could be different, with costs noticeably higher.
• Some tips and strategies to maximize the benefits of your employer-sponsored plan include understanding the plan's features, contributing the maximum amount allowed, taking advantage of any matching contributions, and regularly reviewing your investment options.

Most Americans who obtain their health insurance through work do not spend much time evaluating the benefits and costs provided by their employers.

On average, employees spent only 45 minutes annually deciding on the most suitable benefit options, according to a report from Aon.

The opportunity to closely examine what's at stake arises during open enrollment season, which usually takes place in early December.

And, for starters, costs are going way up.

Costs are rising

For years, the cost of health care has been steadily increasing. Lately, there has been a significant spike.

According to WTW, U.S. employers anticipate a 7.7% increase in health-care costs in 2025, surpassing the 6.9% increase in 2024 and the 6.5% increase in 2023.

Companies plan to reduce total costs by implementing programs and choosing lower-cost providers and sites of care, potentially limiting their network of doctors.

On average, employers cover approximately 81% of health-care plan costs, with employees responsible for the remaining percentage, as stated by professional services firm Aon.

Employees will inevitably bear some of the higher costs.

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In 2025, the average cost per employee for health benefits is predicted to increase by 5.8%, following two consecutive years of increases above 5% after a ten-year period of averaging only around 3%, according to a report by consulting firm Mercer.

Mercer's research director of health and benefits, Beth Umland, stated that these are the changes employees will feel.

The cost of health insurance for workers is already high, with family premiums for employer-sponsored health insurance increasing by 7% this year to an average of $25,572. On average, workers are responsible for more than $6,200 of that amount, while employers cover the rest.

Companies are worried about the impact of post-pandemic cost increases on their workforces, as it affects their decisions about insurance coverage and care, according to Tim Stawicki, WTW's chief actuary of health and benefits.

Consider your health-care expenses

Employees are frequently given the choice between two medical insurance plans: one with a higher monthly premium and a lower deductible, and another with higher out-of-pocket costs but lower premiums.

Gary Kushner, chair and president of Kushner & Company, advised using previous years as a guide when making decisions.

Consider whether you are a low-, medium- or high-claims family, and if you had an incident that required acute care or mostly preventative care.

If you typically visit the doctor annually for a routine check-up, you may want to consider a high-deductible plan with a lower monthly premium.

Health savings accounts

In addition to a high-deductible health insurance plan, over half of employers also offer a health savings account (HSA) to help with extra health-care expenses.

In order to utilize an HSA, one must possess an eligible high-deductible health plan, as defined by the IRS as having a minimum deductible of $1,650 for self-only coverage or $3,300 for family coverage in 2025.

The IRS sets the maximum contribution amount for HSAs each year, which is $4,300 for individuals in 2025, an increase from $4,150 in 2024, and $8,550 for families in 2025, an increase from $8,300 in 2024. Additionally, employees aged 55 and above can make an extra $1,000 catch-up contribution beyond the annual limits.

Out-of-pocket expenses, including doctor visits and prescription drugs, including expensive weight-loss medications, can be covered using HSA contributions that grow on a tax-free basis.

HSAs serve as a crucial safety net for managing rising out-of-pocket expenses, as any unused funds can be rolled over from year to year, according to WTW's Ihrke.

Ihrke advised to ensure that you are considering how to add funds to your savings account to cover a doctor's bill or save it for future years.

Life and disability insurance

Employer-provided life insurance policies are usually equivalent to one year's salary. You can purchase additional life insurance through your employer, which is called supplemental or voluntary life insurance, and it's an optional coverage that you can add to your employer's basic group policy.

Disability insurance offers two main types: Short-term disability typically replaces 60% to 70% of your base salary, with premiums often paid by your employer. Long-term disability, which usually begins after three to six months, typically replaces 40% to 60% of your income.

Determine what coverage is right for you and your family, then decide whether to purchase additional coverage or supplemental insurance through your workplace group plan or independently.

Take advantage of voluntary benefits

Nearly 1 in 5 employees reported deteriorating mental health during open enrollment, according to a recent report by Gallagher.

""Employers are increasingly seeking holistic wellbeing support for their workforce," said Tom Kelly, principal in the Gallagher health and benefits practice."

Some wellness initiatives may comprise financial counseling, stress reduction courses, and gym equipment discounts.

Providing tuition assistance, student loan repayment programs, backup child care, and stipends for enrichment programs and camps can significantly enhance long-term wellbeing.

Kelly stated that although these benefits are optional, they are increasingly contributing to the overall worth of the product or service.