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Don't Ignore Annual Enrollment Process, Says Aon Consulting Worldwide

Posted on: Thursday, 1 November 2007, 09:01 CDT

CHICAGO, Nov. 1 /PRNewswire-FirstCall/ -- With 2008 just around the corner, employers nationwide are preparing for annual enrollment -- a process that allows employees to enroll or change their enrollment status in their employers' healthcare and financial protection plans. While enrolling can feel like an administrative burden in the short-term, the choices employees make during this time will impact their health care and financial protection throughout 2008, according to Aon Consulting Worldwide, the global human capital consulting organization of Aon Corporation .

(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)

"As healthcare costs continue to rise at double-digit rates, employers may change health plans or shift the cost-sharing to employees to better manage these expenses for the coming year," said Jesika Goldman, vice president with the Human Capital practice of Aon Consulting. "This underscores the importance for employees to put careful thought into the annual enrollment process to make the proper choices based on their individual and family healthcare needs and financial situation."

The following will help employees navigate through the annual enrollment process so they can be prepared and make successful healthcare plan enrollment choices.

1. Determine your healthcare needs up front: A good indication of how you and your family will utilize healthcare coverage in 2008 is to examine your current usage. Look at how you currently use healthcare for routine types of services, such as preventive and wellness care, annual physicals, office visits and exams. Then, factor in those healthcare services you expect to need in 2008 -- like maternity care or scheduled procedures. This will give you a picture of how much care you and your family are likely to require in the coming year. 2. Know your risk tolerance: When offered a choice of healthcare plans, it is important to determine your risk tolerance around the costs for coverage and for care. Ask yourself if you are more comfortable paying a higher fixed cost per-paycheck for coverage to pay less out-of-pocket for care and services? Or, do you prefer to pay less up front, but more when you need healthcare services? Asking these questions will help you understand how to invest your healthcare dollars during the year. 3. Make the most of tools and resources: Take time to carefully review the annual enrollment communication your employer provides and share it with your family. Attend employee meetings and ask human resources personnel when you need help to understand your healthcare choices. Many employers now offer personalized online modeling tools geared specifically to help you make educated enrollment decisions. 4. Consider other coverage options: If you have other healthcare coverage available -- through your spouse's employer, for example -- you should compare his/her plan choices and costs to your own to determine which is right for you and your family. If you're considering choosing coverage under both plans, make sure you understand how the two plans coordinate coverage. In some cases, by choosing coverage under two healthcare plans, you may end up paying for coverage you don't need. 5. Increase your tax savings: If offered, take advantage of your employer-sponsored Healthcare Flexible Spending Account (FSA). An FSA has tax advantages that allow your money to go farther when paying out-of-pocket for healthcare expenses during the year. 6. Protect your family's finances: Remember that annual enrollment means more than just making healthcare decisions. Benefit plans, such as life, accidental death and dismemberment and disability insurance, can help protect you and your family financially in the event of a death, serious injury or illness. To help determine the type of coverage you need, ask yourself how your family would meet their immediate and long-term financial obligations were you to pass away or become injured or ill. Then, consider your personal finances and the financial protection plans available from your employer. By assessing your financial needs and reviewing your available benefit plan options, you can choose coverage that will help to ensure that your family and finances are protected. 7. Don't take "passive enrollment" passively: The best way to ensure that you and your family receive the healthcare and financial protection coverage you want and need is to review and evaluate your options every year. While your employer may offer "passive enrollment" -- where your current coverage rolls over into the next year -- it is important for you to take the time to examine your healthcare and financial protection needs for the coming year and decide what benefit plan choices help you meet those needs for 2008. Ends About Aon

Aon Corporation is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. Through its 43,000 professionals worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was ranked by A.M. Best as the number one global insurance brokerage in 2007 based on brokerage revenues, and voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com/.

About Aon Consulting

Aon Consulting Worldwide (http://www.aon.com/hcc) is among the top global human capital consulting firms, with 2006 revenues of $1.282 billion and 6,500 professionals in 117 offices worldwide. Aon Consulting is reshaping the workplace of the future through benefits, talent management and rewards strategies and solutions. In 2006 and 2007, Aon Consulting was named the best employee benefit consulting firm by the readers of Business Insurance magazine.

Media contacts: Joe Micucci Sara Carlson 312-381-4786 312-381-5045 Joe_micucci@aon.com sara_carlson@aon.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

Aon Corporation

CONTACT: Joe Micucci, +1-312-381-4786, Joe_micucci@aon.com, or SaraCarlson, +1-312-381-5045, sara_carlson@aon.com, both of Aon Corporation

Web site: http://www.aon.com/

Source: PRNewswire-FirstCall

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