Open Enrollment Is Coming. Don’t Just Check the Box.
Health insurance probably isn't something you're eager to spend a Saturday morning reviewing.
We get it.
When open enrollment rolls around, it's tempting to look at your current plan, see that it's still available, click "re-enroll," and move on with your life.
Sometimes that's perfectly fine.
But health insurance is expensive, the details change, and your life may have changed too. Spending a little time reviewing your options now can save you money, and potentially some unpleasant surprises, later.
For plans purchased through the federal Health Insurance Marketplace, open enrollment begins November 1. If you want coverage to begin January 1, you’ll generally need to enroll by December 15. Open enrollment continues through January 15, with plans selected later generally beginning February 1. Employer open-enrollment periods vary, so if you receive health insurance through work, pay attention to the dates provided by your employer.
The Premium Isn't the Price
One of the easiest mistakes to make when comparing health plans is focusing too much on the monthly premium.
It's the number you see every month, so naturally it gets your attention.
But the cheapest premium doesn't necessarily mean the cheapest healthcare.
Your deductible matters. So do copays, coinsurance, prescription coverage, provider networks and your out-of-pocket maximum.
Think about two plans.
One costs $500 per month and another costs $750. The $500 plan certainly looks cheaper.
Until something happens.
If the less expensive plan comes with a much larger deductible and out-of-pocket maximum, one surgery, hospital stay or ongoing medical issue can quickly change the math.
That's why we prefer looking at health insurance in terms of potential annual cost, not just monthly premiums.
What will you pay if you barely use the plan?
What might you pay in a normal year?
And what could you pay in a really bad year?
Those are three very different numbers.
Start With How You Actually Use Healthcare
Before comparing plans, take a look at what happened this year.
Did you see specialists regularly? Are you taking prescription medications? Are you expecting a procedure next year? Do you have doctors you want to keep? Has someone in the family developed an ongoing medical need?
Then compare that reality with what each plan covers.
Pay particular attention to provider networks and prescription drug formularies. A plan that looks great on paper may not look nearly as attractive if your doctor is out of network or a medication you take regularly is poorly covered.
The goal isn't to find the plan with the lowest number in one column.
It's to find the plan that makes the most sense for your situation.
Don't Overlook the HSA
If you're considering a high-deductible health plan, the Health Savings Account deserves some attention.
HSAs have an unusual combination of tax advantages: eligible contributions can reduce taxable income, money in the account can grow tax-deferred, and withdrawals for qualified medical expenses can be tax-free.
And unlike a Flexible Spending Account, an HSA isn't generally a "use it or lose it" account. The money can stay invested and carry forward from year to year.
That can make an HSA much more than a way to pay this year's doctor bills. For the right person, it can also become a useful long-term retirement planning tool.
For 2026, the annual HSA contribution limit is $4,400 for self-only coverage and $8,750 for family coverage.
But don't choose a high-deductible plan just because you like the HSA.
The insurance still needs to make sense.
Someone who expects significant medical expenses may be better served by paying a higher premium in exchange for a lower deductible and lower potential out-of-pocket costs.
Changing Jobs? Pay Attention
Health insurance gets more complicated when you're changing employers.
COBRA may allow you to continue your former employer's coverage temporarily, but you'll generally be responsible for the full premium plus an administrative fee. Depending on your circumstances, an ACA Marketplace plan may be another option. Losing employer coverage generally creates a special enrollment opportunity.
This is one of those situations where you don't want to make the decision in isolation.
Changing jobs can affect income, taxes, retirement-plan contributions, HSA eligibility and health insurance all at once.
And if you're receiving an ACA subsidy, estimating your income accurately matters. If your actual income ends up higher than the estimate used to determine your assistance, you could have to repay some or all of the excess when you file your tax return.
Watch Your HSA Contributions, Too
There's another easy-to-miss issue when changing employers.
Suppose you contributed to an HSA through your old employer and your new employer contributes to another HSA on your behalf.
Those contributions don't live in separate universes.
For 2026, the annual HSA contribution limit is $4,400 for self-only coverage and $8,750 for family coverage, and the limits apply across your accounts.
It's worth checking before year-end rather than discovering an excess contribution at tax time.
Your Health Insurance Is Part of Your Financial Plan
We tend to think about health insurance as an employee benefit or a healthcare decision.
It's also a financial planning decision.
The plan you choose affects your monthly cash flow, the amount of emergency savings you may need, your taxes, your HSA strategy and potentially your retirement plan.
So don't automatically click the same box you clicked last year.
Take a look at what's changed. Compare the total costs. Make sure your doctors and prescriptions are covered. And think about how the decision fits with everything else you're trying to accomplish financially.
You may end up choosing exactly the same plan.
But this time you'll know why.
If you'd like help thinking through how your health insurance choices fit into your broader financial plan, schedule a complimentary 15-minute call.
A Weekly Perspective on Planning and Markets
Each week, we share The Week in Review — a short collection of articles on
financial planning and wealth management, along with a brief overview for context.
One email per week. No promotions, no sales – just clarity.
This material was written in collaboration with artificial intelligence (ChatGPT) and derived from sources believed to be correct.
Stordahl Capital Management, Inc is a Registered Investment Adviser. This commentary is solely for informational purposes and reflects the personal opinions, viewpoints, and analyses of Stordahl Capital Management, Inc. and should not be regarded as a description of advisory services or performance returns of any SCM Clients. The views reflected in the commentary are subject to change at any time without notice. Nothing in this piece constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Advisory services are only offered to clients or prospective clients where Stordahl Capital Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Stordahl Capital Management unless a client service agreement is in place. Stordahl Capital Management, Inc provides links for your convenience to websites produced by other providers or industry-related material. Accessing websites through links directs you away from our website. Stordahl Capital Management is not responsible for errors or omissions in the material on third-party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third-party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. Please note that trading instructions through email, fax, or voicemail will not be taken. Your identity and timely retrieval of instructions cannot be guaranteed. Stordahl Capital Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.