How to Make the Most of Your Employee Benefits as Costs Rise
SEB Marketing Team
As the cost-of-living climbs, employees are feeling the pinch, not just at the grocery store or gas pump, but in their benefits plans too. Health and wellness supports provided by employers are growing more expensive to maintain, and that often means higher deductibles, steeper co-pays, or reduced coverage for those who rely on them most. But while these shifts can feel out of your control, how you use your benefits doesn’t have to be. By approaching your benefits package with a little more strategy, you can stretch its value, reduce out-of-pocket expenses, and protect your financial wellbeing without sacrificing your health or peace of mind.
Understand the Full Scope of Your Benefits
Most employees receive a benefits handbook or online portal access that outlines what’s included in their plan. But many skim the surface, focusing only on the basics, and miss out on meaningful savings. Start by reviewing your plan documents. Take the time to understand your deductible (how much you pay before your plan kicks in) along with co-pays for common services, and your co-insurance rates (what percentage of the cost you’ll be expected to share). Knowing your plan’s out-of-pocket maximum is equally important, as this is the highest amount you’ll pay in a year before your insurer covers 100% of eligible costs.
If your plan includes a prescription drug formulary, check where your medications fall within the pricing tiers. A simple switch to a preferred drug could save you significantly throughout the year.
Use What You’re Already Paying For
With a solid understanding of your coverage, the next step is to get more out of it. Preventive care is a good place to start. Many plans cover annual physicals, screenings, and vaccinations at no additional cost. Taking advantage of these services helps catch potential issues early, which can lead to better health outcomes, and fewer bills, down the road.
If your employer offers a Health Spending Account (HSA) or Flexible Spending Account (FSA), contributing even a modest amount can offset future medical expenses. These accounts allow you to set aside pre-tax dollars for things like prescriptions, therapy sessions, or medical devices—expenses you’re likely to incur anyway.
Wellness programs are another underused resource. Whether it’s subsidized gym memberships, health coaching, or online resources, these programs often come with incentives or premium reductions for consistent participation. Virtual care or telemedicine is also increasingly available and offers a convenient, lower-cost way to consult with healthcare providers.
Rethink Your Choices During Open Enrollment
Many employees simply auto-renew their current plan each year without revisiting whether it’s still the best fit. But your needs may have changed and, likely, so have the options. Use open enrollment to take stock. If you’re expecting a new child, anticipating a surgery, or managing a chronic condition, look at which plans offer the best coverage for those scenarios. High-deductible plans may appeal with their lower premiums, but only if you’re prepared for potentially higher costs upfront. On the other hand, a low-deductible plan might be more predictable if you expect frequent healthcare visits.
It’s helpful to estimate your total annual costs, not just your monthly premium, but expected deductibles, co-pays, and prescription expenses. This gives you a clearer picture of what your actual spending could look like over the year.
Keep Everyday Costs Down
Even the best plan comes with out-of-pocket costs. The key is knowing how to manage them. Opting for generic prescriptions when available is one of the easiest ways to cut pharmacy expenses. These versions are regulated for safety and effectiveness but come at a much lower price.
Whenever possible, stick with in-network providers. Going outside the network may mean your plan pays less, or not at all, leaving you with unexpected bills. And always check if a service requires prior authorization. Getting approval ahead of time prevents denied claims later.
After a visit or procedure, review your medical bills carefully. Errors can happen, from duplicate charges to misapplied fees. Don’t hesitate to ask for itemized statements or contact the billing office if something doesn’t look right.
Think Beyond Healthcare
It’s easy to focus solely on health insurance, but there are likely other benefits you’re not fully using. Dental and vision plans often cover preventive care, like cleanings and eye exams, with minimal out-of-pocket costs. These services not only support your overall health but can help detect issues early before they become more serious and expensive.
Disability and life insurance, if offered, provide a layer of financial security that’s easy to overlook until it’s needed. Employee Assistance Programs (EAPs) can also offer free support for mental health, financial guidance, and even legal resources.
And if your employer matches contributions to a retirement plan, such as an RRSP, make sure you’re contributing enough to take full advantage. That match is part of your compensation, and not using it is leaving money behind.
Rising benefits costs may be unavoidable, but how you engage with your benefits is entirely in your control. A little time spent understanding your plan, using its features wisely, and making informed choices can help you reduce healthcare expenses and boost your overall financial stability. Your benefits package is more than just a safety net; it’s a toolkit. Use it well, and it becomes a powerful part of your long-term wellbeing strategy.