Costly mistakes Floridians should avoid during open enrollment

Open enrollment season is an important time of the year for your money and health.

Making mistakes can lead to skipping doctor appointments or losing out on tax-free savings.

In Florida, the enrollment window for the Affordable Care Marketplace plans runs from Nov. 1, 2024, through Jan. 15, 2025. Dec. 15 is the deadline to start coverage on Jan. 1, and Jan. 15 is the deadline to start Feb. 1. Most employer-sponsored insurance plans typically start their enrollment period in the fall and end it a few weeks later.

Unlike car or home insurance, once you sign up for a health plan, you must live with your choice for the following year. Experts say people often regret their choices months later and wish they had better scrutinized their options.

“Health insurance is expensive, and the payroll deductions that employees pay towards health insurance can add up to a lot of money,” said Arthur Novoseletsky, a senior benefits consultant with Brown & Brown in Fort Lauderdale. “It’s important to understand the package offered and make the wisest decision possible.”

Here are seven common mistakes to avoid during this open-enrollment period.

Don’t think the most-expensive option is the best.

“Often people pick the most expensive type of plan because they think that that’s the best plan, but because they don’t necessarily understand the benefits, that’s not really the plan that’s the most suitable for them,” says insurance consultant Novoseletsky.

Rather than defaulting to a higher-priced PPO plan, Novoseletsky advises doing the calculations and considering your specific health needs as well as those of anyone else on your plan. You will want to look at your previous health costs and those anticipated health expenses in the year ahead.

For people who generally are healthy, Novoseletsky says a better option often is a high-deductible health plan, which come with a lower monthly premium and is paired with a Health Savings Account.

“You are able to reap the tax savings by putting money into an HSA account to help pay for qualified medical expenses and, if you’re healthy and you don’t use it, that money rolls over from year to year,” he says.

Don’t think the least-expensive plan is the cheapest.

David Wagner, South Florida market president of Florida Blue, says a plan that will deter you or your family member from seeing a doctor when needed may not be the right one.

Some plans may seem less expensive because of lower monthly premiums, but they cost more over a year.

“Look carefully at the copayments and deductibles,” Wagner says. “Sometimes a plan seems inexpensive, but it has high copayments and deductibles.”

Spend the time upfront to see the full scope of what the plan offers or lacks, Wagner says. And he suggests researching: Are routine visits covered? Can you see a doctor remotely? Are your providers on the list? If a doctor is on the list, is the office taking new patients?

“It’s a mistake not to do your homework,” Wagner says. “Read the fine print and understand what you are truly buying.”

Don’t allow automatic plan renewal to make your choice for you.

Automatic renewal may make your life easy, but it might not be the best way to make your health plan decisions. This is especially true if your health care needs have changed in the last year, if you are taking more medications, if you want more benefits such as dental or hearing, or if your finances have changed.

For Floridians insured through federal marketplace plans, if you don’t take any action by Dec. 15, in most cases, the marketplace will automatically renew your coverage for the coming year starting on Jan. 1.

“Plans change and circumstances change,” says Xonjenese Jacobs, director of Florida Covering Kids & Families, a nonprofit based at the University of South Florida College of Public Health that coordinates enrollment across the state through its Covering Florida Navigator Program. “A change in income or household size impacts your eligibility and cost.”

By updating the information each year, Jacobs says, enrollees can get the most accurate picture of the financial help they qualify for and the coverage. 

Don’t put money in a Flexible Spending Account and forget about it.

A Flexible Spending Account (FSA) lets you set aside pre-tax money to pay for certain out-of-pocket healthcare expenses. Experts say people often set up an FSA and then don’t realize the many ways they can use the money, or learn how to submit claims. They lose hundreds of dollars in the account at the end of the year.

“The FSA is such a great option,” Novoseletsky says. “There are all kinds of things you can purchase to use those funds.”

Sometimes, he says, people change jobs or get distracted near year’s end. “It just becomes out of sight, out of mind, and people don’t think about it, and I don’t think employers do the best job of reminding the employees of the money still in their FSA accounts,” he says.

Don’t fail to update your beneficiaries.

Novoseletsky says it’s important to update beneficiaries and their contact information annually — but many people fail to do so.

He has seen people forget to add a current spouse or leave a former spouse as a beneficiary on life insurance. He has also seen people fail to designate any beneficiary or continue to include someone who has passed away.

“You do need a contingent beneficiary as well,” Novoseletsky says.

Don’t go without disability insurance.

Long-term disability insurance can help replace a large portion of your income if you have an accident and become disabled. The money can be used to pay for expenses like a mortgage, children’s college education, or other financial needs.

“Long-term disability insurance is very important for everyone,” Novoseletsky says. “It is a way to protect your paycheck.”

Although many people have some savings, if someone were to get into an accident and could no longer work, long-term disability would provide income through age 65.

For women in their childbearing years, short-term disability is one of the most important insurances, Novoseletsky says. This type of insurance allows new mothers to have up to 60% of their income for up to six weeks for a routine delivery and eight weeks for a cesarean section.

Employers are legally mandated to provide a woman with family and medical leave after giving birth. While the law protects someone’s job for up to 12 weeks, it does not require employers to give paid time off.

Don’t forget to finish open enrollment or ask for help if needed.

Benefits experts say they often see people who think they’ve finished enrolling but fail to complete the process. They recommend double-checking before the deadline.

Another mistake, Jacobs says, is to become overwhelmed by choices and resist asking for help. Whether enrolling in a company-sponsored health plan or the federal marketplace, benefits departments or navigators can help you compare plans and analyze choices.

“Every plan is not created equal, and by that I mean not all Florida Blue plans or UnitedHealthcare plans are the same,” Jacobs says. “A navigator can help you understand what kind of plan you are picking and help you forecast  your health needs for the next year so you can explore the options to get the best coverage.”

Florida Covering Kids & Families is providing navigators in all 67 Florida counties during the 2025 Affordable Care Act Enrollment, with services offered in more than 100 languages, Jacobs says.

Marketplace enrollees also may get guidance from Healthcare.gov assisters. Employees can often call the insurer directly for help with employer-sponsored insurance.

“I can’t tell you how often people buy plans and do not realize what they bought and what coverage their plan lacks until they need it,” says Wagner, of Florida Blue. “Of course, then it’s too late.”

South Florida Sun Sentinel health reporter Cindy Goodman can be reached at [email protected].

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