During open enrollment, many families renew their health insurance by simply selecting "same as last year." This approach misses opportunities to save money based on changes in your financial situation.
If you built savings during the year, a high-deductible health plan may now work better for you. Consider this example: a family choosing between a traditional plan with a $1,500 deductible and a high-deductible plan with a $5,000 deductible and $250 monthly lower premiums. The premium difference saves $3,000 per year. Adding $9,000 in health savings account (HSA) contributions through payroll saves roughly $2,670 more in federal income and payroll taxes for someone in the 22% federal bracket. In a quiet year, the family comes out about $5,670 ahead. Even in a year with an emergency room visit and follow-up appointments, the family pays only $3,500 more toward the deductible, and the premium savings cover most of the gap.
HSAs offer what the article calls a "triple tax advantage." Payroll contributions skip federal income tax plus Social Security and Medicare taxes. The balance grows untaxed, and withdrawals for qualified medical expenses also come out untaxed. For 2027, families can contribute up to $9,000, including any employer money, and savers 55 or older can add $1,000. Once the balance covers a year's deductible, many plans let you invest the rest, with growth staying untaxed.
Group legal coverage and supplemental policies often renew automatically. Open enrollment is the time to review whether they still make sense. A flexible spending account (FSA) deserves close attention if you are considering a high-deductible plan, since an FSA cannot be paired with an HSA.