Open Enrollment: Choosing Employee Benefits Around a New Baby and Home
Open enrollment is usually straightforward—until life throws in some changes. For the Bolden family, this year’s benefit selection is different from years past. We're selling our home, moving into a new one, and preparing to welcome a new baby in January. With all these life changes, managing our budget and planning have become more intentional.
If you face big life transitions like ours, selecting benefits during open enrollment can be daunting. Here's a look at how my wife and I are navigating this process and how you can approach yours effectively.
Health Insurance: HDHP vs. PPO Plans
The two most common options for health insurance are:
High Deductible Health Plans (HDHPs)
Preferred Provider Organization (PPO) plans
High Deductible Health Plans (HDHPs)
HDHPs typically have lower monthly premiums but higher out-of-pocket costs upfront. These plans allow you to save money in a Health Savings Account (HSA), offering a tax-advantaged way to cover medical expenses.
This type of plan works well for individuals who don’t visit the doctor often and only require routine preventive care. For instance, in years past, this plan worked well for me because I rarely visited the doctor (despite my wife's reminders).
PPO Plans
For 2025, we’re choosing a PPO plan. With a baby on the way, we’ll have frequent doctor visits, and unforeseen medical issues could arise. Early in the pregnancy, my wife experienced complications that required additional care. Having the right health plan provides peace of mind and helps us stay proactive with our budget.
Planning for Baby-Related Expenses
Having a baby brings immeasurable joy—and plenty of bills. Most of our pregnancy has taken place in 2024, but since our baby is due in 2025, our deductible and out-of-pocket maximum will reset.
We joked about how much easier it would be if the baby arrived in 2024 to save on costs. However, we’ve prepared by estimating expenses like:
Prenatal care
Delivery costs
Postnatal care
Pediatric services
Pro Tip: Start estimating costs early. Whether you’re budgeting for a doula, midwife, or pediatrician, understanding these costs upfront can help you plan and avoid surprises.
Balancing Retirement Contributions with Baby Expenses
Another consideration during open enrollment is how to manage retirement savings. While having a baby changes your short-term budget, it’s important to maintain a long-term focus.
Here’s what we’ve done:
Contributed the Employer Match: At a minimum, we contributed enough to receive the full match from our employers. If your employer offers a match, don’t leave free money on the table.
Adjusted Contributions Temporarily: If necessary, reduce contributions for a short period, but avoid stopping them entirely. Once your budget stabilizes, you can revisit your savings strategy.
Taking a Holistic Approach to Benefits Selection
Open enrollment isn’t just about picking what you’ve always picked. It’s an opportunity to:
Evaluate your current needs and future goals.
Explore new benefits added to your plan.
Adjust to any removed benefits.
Big life changes, like having a baby, require intentional conversations with your spouse. Planning ahead ensures you’re prepared for the unexpected while staying aligned with your family’s priorities.
Final Thoughts: Be Diligent and Plan Ahead
While planning doesn’t guarantee everything will go as expected, it provides a foundation for adapting to changes. By being diligent during open enrollment, you can confidently select benefits that meet your family’s needs.
If you’re feeling stuck or want a second opinion, Bolden Wealth Management is here to help. We specialize in simplifying complicated decisions so you can focus on what matters most.
Schedule a complimentary call today, and let’s navigate your open enrollment together!
