Introduction
As employees navigate complex benefits packages, understanding how to make the most of these options is crucial. Matt Phillips, Assistant Vice President of Benefits at AT&T, shares his top tips to help employees optimize their benefits and empower their financial and health decisions.
Rethinking Health Coverage
Choosing the right health plan can significantly impact one’s financial wellbeing throughout the year. Employees should ask key questions regarding their healthcare preferences. For instance, should they opt for higher deductions with lower monthly premiums or vice versa? Phillips advises that pairing high-deductible plans with ancillary medical coverage, such as accident insurance, can provide additional financial security during unexpected health incidents.
Beyond the Medical Plan
While many focus on medical insurance, Phillips emphasizes the importance of exploring all available benefits. AT&T, for instance, offers a legal plan and elder care planning services, which employees may overlook. Understanding what services are automatically available can also enhance financial and personal wellbeing, reducing the need for extensive enrollment processes.
The Importance of Retirement Planning
As employees consider their retirement needs, maxing out 401(k) contributions and utilizing retirement planning tools can be game-changers. Phillips encourages employees to take advantage of any employer matches, as this is essentially free money which enhances future savings. Moreover, leveraging a Health Savings Account (HSA) is smart for managing healthcare costs, especially as expenses often grow post-retirement.
Avoiding Duplication in Coverage
A common oversight among dual-income households is opting for redundant dependent coverage. Phillips points out that parents should carefully evaluate insurance plans to avoid unnecessary expenses. Instead of insuring children under both plans, families can compare coverage benefits and costs and select the most suitable option.
Utilizing Company Resources
Phillips stresses the value of reaching out to HR and benefits personnel for assistance in navigating the benefits landscape. Many large organizations, like AT&T, provide resources to help employees understand their options better. Engaging with these resources can clarify benefits and unlock potential savings.
Key Takeaways
- Evaluate healthcare options carefully, considering both cost and coverage.
- Explore all available employee benefits beyond just medical plans.
- Maximize 401(k) contributions and consider HSAs for retirement savings.
- Avoid overlapping insurance coverage for dependents to save costs.
- Reach out to HR for assistance in understanding and maximizing benefits.
