When the company sends out benefit selection emails, most people just skim the subject line and move on. They think that if they stick with last year's plan, it will automatically continue.

However, this few minutes of clicking determines how much money will be deducted from your paycheck each month and your medical expenses for the entire year. This is why open enrollment can be daunting.

Employer-sponsored health insurance can typically only be changed once a year. Unless there are significant life changes like marriage, childbirth, or loss of other insurance, there are almost no options to switch plans mid-year.

This means that even if the plan you choose now isn't right for you, you'll have to stick with it until this time next year. So, the statement that choosing incorrectly can lead to losses for a whole year is not an exaggeration.

This year is particularly difficult to overlook. According to preliminary results from a survey by the consulting firm Marsh, it is expected that the average cost of health benefits per employee will rise by 8.2% by 2027.

Since this is the largest increase since 2003, I was a bit surprised to see the numbers. Some responses indicated that without cost-saving measures, the average could rise by as much as 11%.

Another consulting firm, Mercer, found that two-thirds of large companies with over 500 employees plan to increase the insurance premiums deducted from paychecks in 2027. Additionally, 48% of them plan to raise deductibles or copays.

Ultimately, even if the plan has the same name as last year, the details are likely to be different. Therefore, rather than relying on automatic renewal, it's essential to take a look at it yourself.

The most common mistake when comparing plans is only looking at the monthly premium. Cheaper plans often have higher deductibles, which can end up costing more if you visit the hospital frequently.

My method is simple. I multiply the monthly premium by 12 and add the expected hospital and medication costs for the year to compare the total amounts for each plan.

It's also crucial to consider the maximum out-of-pocket expense. This number tells you how much you could potentially pay in a worst-case scenario, such as major surgery or hospitalization.

If you are generally healthy and rarely visit the hospital, choosing a high-deductible health plan (HDHP) with a health savings account (HSA) may be advantageous. The IRS has announced that the HSA contribution limit for 2027 is $4,500 for individual coverage and $9,000 for family coverage.

If you are over 55, you can contribute an additional $1,000. HSAs offer tax deductions when you contribute, tax-free growth, and tax-free withdrawals for medical expenses, making them a powerful savings tool.

However, to qualify as an HDHP, the deductible must be at least $1,750 for individual coverage and $3,500 for family coverage in 2027. The out-of-pocket maximum cannot exceed $8,700 for individuals and $17,400 for families.

On the other hand, if you have chronic conditions or take regular medications, a plan with set copays, even if slightly more expensive, may provide peace of mind. Knowing your fixed monthly expenses can be a significant advantage.

The second pitfall is the network. You must verify whether your current primary care physician, Korean doctors, or frequently visited hospitals are included in the new plan's network.

If a doctor you were comfortable consulting in Korean becomes out-of-network next year, your medical costs could skyrocket or may not be covered at all. The most reliable way is to search for their names directly using the insurance company's doctor finder tool.

The third consideration is the prescription drug list, commonly referred to as the formulary. Even within the same insurance company, the drug tiers can vary by plan, and some medications may be excluded starting next year.

Recently, employers have cited GLP-1 class obesity treatments as a significant reason for rising costs, so coverage conditions for these medications may change. If you are taking any medications, be sure to compare them one by one.

If you use an FSA, it's also important not to set aside too much money. Generally, any unused funds expire at the end of the year, so it's best to contribute only what you expect to use.

Some companies may allow a portion of the funds to roll over or provide a grace period, so check your company's policies first. The 2027 medical FSA limit is still pending official announcement from the IRS, so it's safest to rely on the figures provided in your company's materials.

Freelancers or self-employed individuals without company insurance should look at the state marketplace. The open enrollment period for Maryland Health Connection for 2027 is from November 1, 2026, to January 15, 2027.

To start coverage on January 1, you need to enroll before the deadline, so it's best to double-check the exact dates on the website. The site also has a feature that allows you to preview next year's plans and prices.

Marketplace enrollees should not assume that the subsidies they received last year will be the same this year. Entering your income anew may change the premiums you need to pay, so be sure to log in before automatic renewal.

If your spouse also has company insurance, compare both plans side by side. Depending on whether it's better to consolidate the family under one plan or enroll separately, the total costs for the year can vary significantly.

In summary, the order is as follows: calculate the total annual costs, check the doctor and hospital networks, compare medications, and determine HSA or FSA amounts.

This can all be done in just 30 minutes. Compared to the time spent regretting medical bills throughout the year, it's a very worthwhile investment.

If it were me, I wouldn't hit the automatic renewal button this year. In a year when premiums are rising so significantly, last year's correct choice could become this year's wrong one.

Right before the deadline, the HR team gets busy, and the website slows down. I recommend taking some time this weekend with a cup of coffee to slowly go through the benefit selection email.