How Physicians Can Maximize Benefits This Open Enrollment Season

It's that time of year again: open enrollment season. For many physicians, it can feel more stressful than it should.

Medical school taught you how to treat complex conditions, but it didn't prepare you to compare insurance plans, weigh deductibles, or understand the alphabet soup of benefits. We see this all the time with our clients, and you are not alone if you feel overwhelmed.
Here are some key things to keep in mind as you prepare for open enrollment, along with a few common pitfalls we see physicians run into.

1. Run the Numbers on Your Health Insurance Options

Open enrollment is a chance to step back and make sure your health insurance still fits your household’s needs rather than just defaulting to what you chose last year.

We often see physician couples where both spouses have employer coverage simply pick what looks like the best family plan without comparing all the options. The reality is that you do not always have to put everyone on the same plan. In some cases, it can make sense for each spouse to stay on their own employer plan, or for one spouse to cover the kids (dependents) while the other enrolls as an individual.

• • Premiums: the amount you pay each month for your insurance
  • Deductible: the amount you pay out of pocket before insurance starts covering costs
  • Co-insurance: the percentage of costs you share with your insurer after meeting your deductible (for example, you pay 20 percent, insurance pays 80 percent)
  • Out of Pocket Maximum: the maximum you will pay in a year for covered services; once you hit this number, insurance covers 100 percent

It is easy to get hung up on the deductible, since a higher number can feel intimidating. But do not let that alone drive your decision. A high deductible health plan often means you will pay a much lower monthly premium. If you do not anticipate a lot of healthcare expenses in a given year, that tradeoff can work in your favor. You are covered for emergencies but not overpaying every month.

High deductible plans typically come with another big advantage: eligibility for a Health Savings Account (HSA). An HSA is one of the most powerful tax-advantaged tools available. You get a deduction on contributions, growth is tax free, and withdrawals are tax free if used for qualified medical expenses. Many employers help offset your medical costs by contributing directly to your HSA, which is essentially free money.

For 2026, the maximum HSA contribution is $4,400 for self-only coverage and $8,750 for family coverage. Individuals age 55 and older can contribute an additional $1,000 as a catch up contribution.

Bottom line: Do not assume you have to put your whole family on one plan. Compare premiums, deductibles, co-insurance, out of pocket maximums, and HSA eligibility across both employers’ options to see the real cost picture.

2. Disability and Life Insurance: The Limits of What Work Provides

Most employers provide a baseline of life and disability insurance coverage. That is a helpful starting point, but it is important to understand the details because in most cases it is not enough to cover the needs of physicians, especially those who are married or have children.

Life Insurance:

Employer provided life insurance is a nice benefit, but it almost never provides the level of protection your family would actually need. Coverage is usually limited to a flat amount or one to two times your salary. That may sound like a lot, but it typically falls short once you factor in student loans, a mortgage, childcare, and future education costs.

On top of that, the coverage usually is not portable. If you leave your job, the policy does not go with you. Many employers allow you to “buy up” additional coverage at group rates, but even that is best viewed as supplemental. What is often appropriate is a supplemental individual policy purchased outside of work. Term policies are typically affordable for physicians and allow you to tailor the coverage amount and length to your family’s specific situation.

Disability Insurance:

Disability coverage through work has similar limitations. It often replaces only a percentage of your income (and sometimes that benefit is taxable). The maximum benefit caps can leave a large gap for high earning physicians. And while employer coverage is better than nothing, it usually will not be enough to maintain your family’s lifestyle if you are unable to work long term.

This matters because disability is far more common than most people realize. According to the Social Security Administration, a 20 year old worker today has about a 1 in 4 chance of becoming disabled before retirement age. For physicians, that risk carries extra weight because so much of your financial plan depends on your ability to earn.

Bottom line:

View your employer provided life and disability insurance as a foundation. Then build on it with personal policies such as term life insurance and individual disability insurance that reflect your real income, family needs, and long term goals.

3. Do Not Overlook Non-Traditional Benefits

Health insurance and basic coverage get most of the attention during open enrollment, but many employers are adding creative benefits that can save you hundreds or even thousands of dollars each year. The key is to take a closer look at your benefits with an eye toward what you already spend money on.

A few examples to look for:

Dependent Care Flexible Spending Account (FSA): If you have young kids in daycare, preschool, or after school programs, a dependent care FSA can be a big tax saver, if you meet eligibility requirements. Contributions are made pre tax, which means you are reducing your taxable income while covering childcare costs you already pay. For many physician households, this can free up thousands of dollars per year.

Wellness perks: Some employers reimburse gym memberships, fitness classes, or even provide wellness stipends. If you are already paying for these out of pocket, this benefit can put money back in your pocket.

Student loan repayment assistance: A growing number of employers are offering student loan repayment benefits. Even if it is a modest monthly amount, it directly reduces your loan balance and interest over time, which matters if you are carrying six figures of student debt.

Other extras: Look for continuing education allowances, legal services, commuter benefits, or lifestyle stipends. These may not sound huge, but they can add up quickly when they offset things you would be doing (and paying for) anyway.

Bottom line: Do not just stop at health, life, and disability insurance. Take a closer look at your full list of benefits with this question in mind: “What am I already paying for today that my employer could help me cover?” Taking the time to engage with these perks can make your existing lifestyle less expensive, and that is real savings.

Final Thoughts
Open enrollment only happens once a year, so it is worth slowing down and running the numbers. Compare options carefully, look beyond just the monthly premium, and think about how each benefit, from health insurance to disability coverage to wellness perks, fits into your bigger financial plan. As a physician, your benefits package can be one of the most valuable parts of your compensation. Making intentional choices now can save you thousands of dollars and headaches later on.

Wrenne Financial Planning is a registered investment adviser. The content of this blog post is intended for informational purposes only and is not intended to be investment advice. The views expressed in this blog post are subject to change based on market and other conditions. Some information has been obtained/provided from third party sources and is believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.