Essential Guide to Open Enrollment for 2026

September 30, 2025 — Sam H. Fawaz

As we approach the annual open enrollment period for most employers (typically October through November 2025), now is the perfect time to review your employee benefits and make informed decisions that will impact your financial well-being throughout 2026.

Why Open Enrollment Matters More Than Ever

Open enrollment is your once-a-year opportunity to make changes to your employer-sponsored benefits. Outside of qualifying life events (marriage, divorce, birth of a child, etc.), this is likely your only chance to:

• Switch health insurance plans or carriers

• Adjust life and disability insurance coverage amounts

• Modify flexible spending account (FSA) elections

• Review and update beneficiary information

• Evaluate supplemental benefits like vision, dental, or critical illness coverage

Key Areas to Review During Open Enrollment

Health Insurance

Health insurance, especially catastrophic health insurance, is not optional for anyone, as healthcare and hospitalization costs continue to skyrocket.

• Compare your plan options carefully: Don’t automatically re-enroll in your current plan. Premiums, deductibles, and covered providers may have changed.

• Consider your 2026 healthcare needs: Are you planning any major medical procedures? Do you have ongoing prescriptions? Select a plan that matches your anticipated usage.

• Network providers: Verify that your preferred doctors and hospitals are still in-network for your chosen plan.

• Supplemental Insurance: Analyze the real total cost of dental and eye care insurance by comparing total out-of-pocket costs with and without insurance. With meager benefits, limited payments, and high co-pays or co-insurance, the premiums may not be worth the coverage provided, and you therefore may want to forego coverage.

• Total cost analysis: Look beyond monthly premiums to include deductibles, co-pays, and out-of-pocket maximums. Are you a good candidate for a high-deductible health plan (i.e., you’re generally in good health and have minimal consumption of healthcare), which makes you eligible for a health savings account (HSA)?

Life and Disability Insurance

• Life insurance: Review your current coverage amount. Has your income increased? Do you have new dependents? Consider whether your current coverage adequately protects your family’s financial needs. Consider whether you really need accidental death and disability insurance and whether it’s worth the extra cost.

• Disability insurance: Evaluate both short-term and long-term disability options. Your income is likely your most valuable asset—protect it accordingly. For most people, maximizing available disability insurance coverage is a great idea.

• Supplemental coverage: Group rates through your employer are often more affordable than individual policies purchased elsewhere.

Flexible Spending Accounts (FSAs)

• Healthcare FSA: Estimate your out-of-pocket medical expenses for 2026, including prescriptions, dental work, and vision care.

• Dependent Care FSA: If you have qualifying childcare or eldercare expenses, this pre-tax benefit can provide significant savings.

• Remember the “use it or lose it” rule: Most FSAs have limited carryover provisions (some plans require you to use all amounts by December 31; others give you a few extra months), so plan and understand your elections carefully.

Smart Decision-Making Tips

1. Gather last year’s data: Review your 2024-2025 healthcare spending, insurance claims, and FSA usage to inform your 2026 decisions.

2. Calculate total annual costs: Don’t focus solely on monthly premiums. Add up premiums, deductibles, and expected out-of-pocket expenses for a comprehensive view.

3. Consider your family situation: Changes in marital status, number of dependents, or family health conditions should influence your benefit selections. Compare benefits and costs if both spouses work, and make choices that fit your family’s needs.

4. Think ahead: Are you planning a family addition, major surgery, or a career change in 2026? Factor these into your benefit choices.

5. Update beneficiaries: Use this time to ensure your beneficiary information is current for all accounts (e.g., 401(k), 403(b), 457, 401a plans) and insurance policies.

6. Ask questions: Don’t hesitate to attend employer benefit sessions or contact HR for clarification on plan details.

We’re Here to Help

Navigating open enrollment can feel overwhelming, but you don’t have to do it alone. We are available to consult with you on your benefit elections and help you make informed decisions that align with your financial goals and family needs.

To ensure we can provide timely guidance and help you meet enrollment deadlines, please contact us before your employer’s enrollment period closes. Many companies have strict deadlines in late October or November, and missing these dates could mean waiting until next year to make changes.

Take Action Now

• Mark your calendar: Note your employer’s specific open enrollment dates

• Gather your information: Collect recent medical bills, current benefit summaries, and family health information.

• Don’t procrastinate: The best benefit choices require careful consideration—start planning now.

Your employee benefits are a significant part of your total compensation package. Making thoughtful, informed decisions during open enrollment can save you money and provide better protection for you and your family throughout 2026.

Sam H. Fawaz is the President of YDream Financial Services, Inc., a fee-only investment advisory and financial planning firm serving the entire United States. If you would like to review your current investment portfolio or discuss any other tax or financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fiduciary financial planning firm that always puts your interests first, with no products to sell. If you are not a client, an initial consultation is complimentary, and there is never any pressure or hidden sales pitch. We begin with a thorough assessment of your unique personal situation. There is no rush and no cookie-cutter approach. Each client’s financial plan and investment objectives are unique

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How Medicare Costs Are Changing for 2023

October 30, 2022 — Sam H. Fawaz

Medicare’s Open Enrollment Period — which runs from October 15 through December 7 — is your annual opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs. Just in time for Open Enrollment, 2023 Medicare premiums, deductibles, and other costs have been announced, and surprisingly, some of these costs are lower than they were last year.

What to consider

Start by reviewing any materials your plan has sent you. Look at the coverage offered, the costs, and the network of providers, which may be different than last year. Maybe your health has changed, or you anticipate needing medical care, or new or pricier prescription drugs. If your current plan doesn’t meet your healthcare needs or fit your budget, you can make changes. But if you’re satisfied with what you currently have, you don’t need to do anything. The coverage you have will continue.

During Open Enrollment, you can:

  • Switch from Original Medicare to a Medicare Advantage Plan
  • Switch from a Medicare Advantage Plan to Original Medicare
  • Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
  • Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn’t offer prescription drug coverage
  • Switch from a Medicare Advantage Plan that doesn’t offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage
  • Join a Medicare prescription drug plan (Part D)
  • Switch from one Part D plan to another Part D plan
  • Drop your Part D coverage altogether

Any changes made during Open Enrollment are effective as of January 1, 2023.

Medicare Part B (Medical Insurance) costs for 2023

Most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $164.90 in 2023. This premium is $5.20 lower than it was in 2022 due to lower-than-projected spending for a new drug, Aduhelm, and other Part B items and services.1

People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2021) is above a certain amount, you’ll pay the standard premium amount and an Income-Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table.

You filed an individual income tax return with MAGI that was:You filed a joint income tax return with MAGI that was:You filed an income tax return as married filing separately with MAGI that was:Total monthly premium in 2023 is:*Total monthly premium in 2023 immunosuppressive drug coverage only is:
$97,000 or less$194,000 or less$97,000 or less$164.90$97.10
Above $97,000 up to $123,000Above $194,000 up to $246,000N/A$230.80$161.80
Above $123,000 up to $153,000Above $246,000 up to $306,000N/A$329.70$258.90
Above $153,000 up to $183,000Above $306,000 up to $366,000N/A$428.60$356.00
Above $183,000 and less than $500,000Above $366,000 and less than $750,000Above $97,000 and less than $403,000$527.50$453.10
$500,000 and above$750,000 and above$403,000 and above$560.50$485.50

People with higher incomes may also pay a higher premium for a Medicare Part D prescription drug plan, because an IRMAA will be added to the Part D basic premium based on the same income limits in the table above. Part D premiums vary, but the average basic monthly premium for 2023 is projected to be $31.50 (down from $32.08 in 2022).

People with Medicare Part B must also satisfy an annual deductible before Original Medicare starts to pay. For 2023, this deductible is $226 (down from $233 in 2022).

*This premium applies to a new benefit that extends coverage for immunosuppressive drugs for people who qualify for Medicare coverage due to end-stage renal disease. Prior to 2023, Medicare coverage, including immunosuppressive drug coverage, ended 36 months after a successful kidney transplant. Beginning January 1, 2023, Medicare will offer a new benefit that will help continue to pay for immunosuppressive drugs beyond 36 months for people who don’t have other health coverage. It does not cover other items or services. Rates shown apply to people who file individual or joint tax returns. Premiums for beneficiaries filing as married filing separately are different.

Medicare Part A (Hospital Insurance) costs for 2023

  • Part A deductible for inpatient hospitalization: $1,600 per benefit period (up from $1,556 in 2022)
  • Part A premium for those who need to buy coverage: up to $506 per month (up from $499 in 2022) — most people don’t pay a premium for Medicare Part A
  • Part A coinsurance: $400 per day for days 61 through 90, and $800 per “lifetime reserve day” after day 90, up to a 60-day lifetime maximum (up from $389 and $778 in 2022)
  • Part A skilled nursing facility coinsurance: $200 for days 21 through 100 for each benefit period (up from $194.50 in 2022)

If you have any questions about Medicare, would like to review your current investment portfolio or discuss any other financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fee-only fiduciary financial planning firm that always puts your interests first.  If you are not a client yet, an initial consultation is complimentary and there is never any pressure or hidden sales pitch. We start with a specific assessment of your personal situation. There is no rush and no cookie-cutter approach. Each client is different, and so is your financial plan and investment objectives.

1) The Centers for Medicare & Medicaid Services, 2022

You can view more information on Medicare benefits in the Medicare & You 2023 Handbook and access a Medicare plan finder tool that allows you to compare health and drug coverage options at medicare.gov.

You can also call your State Health Insurance Assistance Program (SHIP) for free, personalized counseling. Visit shiptacenter.org or call the toll-free Medicare number 800-MEDICARE (800-633-4227) to find the phone number for your state.

Medicare Part C (Medicare Advantage) costs vary by plan, but the projected average premium for 2023 plans is $18 (down from $19.52 in 2022). You will also have to pay the Medicare Part B premium.

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