By Ted Gotsch
Policy Content and Publications Manager
Millions of Americans are currently in the midst of the annual ritual that is open enrollment season, mulling choices about how to best address the health care, retirement, and life insurance needs for themselves and their families.
These decisions can be stressful even for those who are well-versed in the process. But this year, there is additional cause for concern within the health insurance landscape. While the debate over the expiring Affordable Care Act (ACA) enhanced tax credits continues, it is expected that consumers will see substantially higher health insurance premiums, both inside the ACA marketplace as well as in the employer market, as the overall political uncertainty has negatively affected rates for 2026.
It remains to be seen whether Congress will renew the credits and halt the dramatic price increase that would hit many people, especially those with lower incomes, hard. But for now, the situation is causing considerable consternation for the public, employers, and policymakers.
Fortunately, the Academy has a lot of answers for those with questions about shifting health insurance markets in this country. It recently released the Health Insurance Market Dynamics Resource Guide, which offers a series of actuarially grounded publications exploring key policy and market factors that shape enrollment, risk pool composition, and premium trends.
The materials focus on ACA markets, large-group employer-sponsored plans, and state Medicaid programs. Together they provide a broader picture of how policy changes and market forces may interact, revealing connections among the three markets and the challenges in finding balance. These dynamics are central to ongoing policymaker discussions around access, costs, and eligibility.
With retirement benefits, selections can be even more complicated. Even if an employer offers a retirement plan like a 401(k), how does the employee decide what to invest in? How much of a contribution is enough? And does your workplace match your contribution, and if so, by how much? For those who may also have the option of a pension or an annuity, there may be even more questions and what feels like limited answers.
Employee engagement on these issues is paramount, and is something the Academy’s addressed in a 2022 issue brief, part of a series of papers addressing national retirement policy. More recently, the Academy’s Retirement Policy and Design Evaluation Committee published an issue brief in June examining how employer-sponsored retirement plans provide important protections for spouses, such as in the event of divorce or the participant’s death, but also have gaps that policyholders and spouses need to be aware of. Also, the Academy offers a series of resources on Social Security and others offering focused retirement considerations, such as if someone is a gig worker or has questions about a defined benefit versus a defined contribution pension plan.
It’s a lot to ponder, especially when one considers Social Security as part of the equation. The Academy did a deep dive on retirement policy during a September symposium, and also looked at how Americans save and spend in retirement in an October webinar.
When it comes to open enrollment, there seems to be less focus on the need for life insurance, and that’s a shame. Many workplaces provide their employees with life insurance as part of their benefit package, as well as the opportunity to purchase additional coverage, but statistics show that many more Americans could take advantage of such offerings.
As it stands, some 102 million Americans either don’t have life insurance or need more of it. Why? Because 72% of the public assumes it is more expensive than it is. They miss out on the security such policies bring. Life insurance products can provide critical financial assurance for families affected by loss of a loved one or other covered loss or condition.
Visit the Academy’s website to learn about life insurance and the work our life actuarial volunteers are doing to promote sound public policy. Expanding financial literacy so consumers have a better understanding of the potential benefits of life insurance is another step toward increased security for families.
And don’t forget about other insurance and financial services products that may be available during open enrollment. Options around pet insurance, vision and dental coverage, cyber insurance, and travel insurance may all be part of the conversation around the water cooler and in HR offices for the next few weeks. Some of these issues are ones that Academy volunteers have developed work products and comment letters on, which reflects just how broadly actuarial expertise can go when we consider the impact the profession has on the public.
Taken together, health and life insurance as well as retirement savings are three important pillars that help ensure financial security for American families. During open enrollment, it is important for those making these key decisions to understand each so they can make selections that fit their needs best. Choose wisely.