Open Enrollment Season: The Costly Insurance Quote Mistake Everyone Makes

Every year, employees receive that familiar notification: open enrollment is here. But rushing through health insurance selections without doing the math? That’s a sorry move that could cost you thousands. Financial advisor Suze Orman warns against making this critical error during the annual enrollment period, and the numbers suggest she’s right to be concerned.

Why This Mistake Happens

Most people focus solely on one factor when choosing health plans: the premium cost shown on the quote. They see Plan A costs $150 and Plan B costs $200 monthly, then automatically pick Plan A. But that’s ignoring the bigger financial picture. Healthcare expenses don’t stop at premiums—they include deductibles, co-pays, co-insurance, and out-of-pocket maximums. Failing to account for these can leave you financially exposed.

Mercer’s latest predictions show employers will face premium increases of 6.5% to 9% in 2026, depending on cost-containment strategies. While companies may absorb some of this, employees often shoulder a portion through higher paycheck deductions. Yet the real mistake isn’t just about premiums—it’s about ignoring the total cost picture.

Breaking Down the Real Costs

Deductibles and Plan Types

High-deductible health plans (HDHPs) offer lower premiums but require you to pay more out of pocket before insurance kicks in. The advantage? You can pair an HDHP with a health savings account (HSA), a tax-advantaged account where pre-tax contributions go toward medical expenses. Your employer may even contribute to your HSA.

The mistake people make: choosing an HDHP without verifying they have sufficient savings to cover the deductible when needed. If you don’t have $2,000-$3,000 in emergency reserves, this plan type could backfire.

Co-Payments and Co-Insurance

Beyond the deductible lies another layer: co-payments (fixed fees per visit, like $30 for a specialist) and co-insurance (a percentage you pay after the deductible, perhaps 20% of costs). These vary significantly between plans and depend on whether providers are in-network or out-of-network.

The Smart Comparison Strategy

Don’t rely on plan summaries alone. Instead, pull your 2025 medical claims and receipts, then calculate what those same expenses would cost under each 2026 plan option your employer offers. Exclude one-time extraordinary expenses—focus on typical usage patterns.

This data-driven approach reveals which plan genuinely fits your healthcare habits and budget. Yes, it requires effort, but avoiding this step is the sorry mistake Orman warns about: selecting a plan based on incomplete information.

Your future self—and your bank account—will thank you for running these numbers before that open enrollment window closes.