It is that time of year again. Pumpkin spice, apple orchards, haunted houses, football, and…3M open enrollment! Well, maybe open enrollment did not make your Top 5 List, but it began on October 7th and closes October 23rd. 3M provides an excellent guide to help you make decisions. We will walk you through the high points and factors to consider, so you get the most out of your 2021 benefits.
With COVID-19 and all the new terrain that has come with it, 3M has tried to simplify your life by not introducing too many new features. Noteworthy changes include increased cost of medical premiums (due to the rising costs of healthcare), decreased additional and spouse life insurance premiums, and 100% coverage of standard progressive lenses under the VSP+ Plan.
3M employees, spouses, eligible dependents, and domestic partners.
3M provides three medical insurance plan options.
The Plans:
Questions to consider when selecting:
The Choice Advantage and Prime Advantage Plans (otherwise known as the Advantage Plans) are generally best suited for those who expect lower medical expenses during the year. For those who expect higher medical expenses, the Basic PPO plan could be a better option.
For additional information, see 3M’s People Like Me guide available in the annual enrollment section of your 3M benefits login. It shows examples of what someone in your shoes might select.
Health Savings Account (HSA)
Flexible Spending Account (FSA) – Health Care
An FSA for dependent care allows you to pay for childcare costs with tax-free dollars. If you know you will incur these costs, using this account to set aside money is the most tax efficient way to do so.
Note: those with annual compensation in excess of $130,000 may not be able to contribute the full $5,000/year. Visit Your Benefits Rewards to determine your contribution amount.
If you have a spouse who plans to enroll in a 3M medical plan, you should be aware that there is an extra charge of $211/month (or $2,532/year) if your spouse is eligible for coverage via a current/past employer. If not offered employer-provided coverage or unemployed, this fee is waived.
Tobacco Free Discount – To be eligible for the tobacco free discount, you need to recertify every year. You are then eligible to receive lower premiums on the 3M Medical plan ($30/month for employees plus $30/month for all covered dependents), additional life, and critical illness insurance.
3M Healthy Living Credit – After completing online assessments, employees are eligible for a $50/month credit; enrolled spouses/partners are eligible for $25/month.
However, even if you do forget to floss, 3M dental insurance has got your costs covered—at least part of them.
There are three plans. The only difference is how much 3M will pay towards your annual costs: $500, $1,500, or $2,500. The more 3M is obliged to cover, the higher the premiums. Estimate how much you expect to spend on dental treatment over the next 12 months and then select accordingly.
3M provides 1x salary coverage at no cost to employees and offers the opportunity to increase coverage during open enrollment. This year, the premiums have decreased from prior years so take a close look at the new amount.
Although it may be easy to select an additional multiple of salary coverage, if you are in good health, you typically will pay higher premiums through a group coverage plan than getting the same coverage outside of 3M.
We can help you to determine the right amount of coverage your family needs and consider lower-cost alternatives. If you do not think you will have an alternative in place by January 1, 2021, make sure to elect your typical multiple of salary coverage. You can stop the coverage at any time during the year.
You will have the same medical, dental, and vision plans as last year. Moreover, you will have the same life, critical illness, and accident insurance.
However, for the medical plan, critical illness, and additional life insurance, you will not receive the Tobacco-Free discount, so your premiums will most likely increase!
For the Health Savings Account, you will not receive a 3M contribution and your payroll deduction will default to $0. For the Flexible Spending Account, you will not participate.
In other words, do not forget to sign up!
Unless you have a qualifying event—marriage, divorce, new baby, death, spouse loss of coverage—you will not be able to change your medical, dental, or vision plan until the next enrollment period. You can add or cancel life insurance mid-year, but you might need to take additional steps.
Enrollment began October 7th and ends on October 23rd. Elections take effect on January 1, 2021. If you have already submitted your selections, but are having second thoughts, you can still make changes by October 23rd.
While Open Enrollment might not be as fun as a haunted house or as entertaining as a football game, it is a terrific opportunity for you to take advantage of the benefits that 3M offers.
We want you to feel confident in the financial decisions you are making for open enrollment. Please reach out if you would like additional assistance on how certain benefits apply to your unique financial situation. As always, it is our pleasure to serve you.
Notes:
*Premium – the amount of money you pay to participate in a plan
**Deductible – the amount of money you pay for medical expenses before insurance kicks-in and helps you pay.