With open enrollment season in full swing, scheduling time for all-important information and signup meetings is only half the battle. Failing to ensure that employees follow through and review their benefit options rather than simply letting their plans roll over for another year could end up costing them thousands of dollars in out-of-pocket expenses.

According to a recent CareerBuilder survey, 25% of more than 4,000 workers report that they don’t pay attention to benefit changes, citing the confusing process or a belief that the same benefits will be available as reasons for their nonparticipation. Additionally, 15% of the more than 2,900 hiring managers surveyed estimate that an average of more than 10% of their employees miss annual open enrollment deadlines.  

The cost of such a lapse for an employee ranges from $500 to more than $2,500, HR managers estimate. Approximately one-third (34%) say missing open enrollment costs employees an average of $500 in out-of-pocket expenses, 20% say $1,000, and 10% claim employees could pay upwards of $2,500 extra.

Lack of knowledge is a leading factor in why employees don’t sign up for beneficial plan changes. HR managers pointed to the following benefits as those employees don’t typically realize their companies provide:

• Flexible health care spending — 43%
• Wellness benefits — 45%
• Tuition reimbursement — 38%
• Banking programs — 25%
• Discounts on personal entertainment (24%), personal technology (22%), personal travel (20%)
• Transit programs — 10%
• Childcare help — 10%

“Workers who are not maximizing their benefit potential are literally giving away free money every year,” says Rosemary Haefner, VP of HR at CareerBuilder. “In today’s economic environment, it’s even more critical that employees make sure they are not missing out on benefit opportunities that can help them better manage personal expenses for themselves and their families.”

Haefner offers the following tips to make the most of benefit savings:

• Set aside time to review benefit options early in the process so as not to rush decision making.
• Examine how to leverage pre-tax dollars beyond 401(k) plans through FSAs, transit programs and other company offerings.
• Look outside the company to compare plan options with those of a spouse or significant other to decide which plan would be most beneficial.
• Pay attention to perks such as discount programs, concierge services, wellness benefits and more.