Whether you’re joining the workforce, starting a new job, or aging out of a parent’s coverage, choosing the right options from your employer-sponsored health insurance benefits can be overwhelming. These tips will help you know what to look for when choosing your own health insurance plan.

1. Decide whether a high- or low-deductible plan will best meet your needs

Think of your health plan like a subscription with two main costs:

How they work together:

Plans with lower deductibles usually have higher premiums (you pay more each paycheck but less when you need care). Plans with higher deductibles usually have lower premiums (you pay less each paycheck but more upfront if you need care).

To help with paying the deductible, you can contribute to a Health Savings Account (HSA). This money is taken out of your paycheck tax-free and accumulates throughout the year. Then when you need care, you can use the money in your HSA to pay your portion.

2. Check if your employer offers a plan selection tool

Some employers offer tools that ask you questions about your expected health needs in the next year and then provide a cost comparison of your plan options and sometimes a recommendation.

3. Find out whether your medical plan offers incentives

Many medical plans offer an incentive program that reward you for healthy behaviors. By taking a simple health assessment, you can earn incentive dollars that are deposited into your plan account (such as an HSA) and can be used for health care costs.

Some plans give incentive dollars for tracking health numbers such as body mass index (BMI), blood pressure, or cholesterol. Other plans may offer rewards for using various health apps, participating in health coaching programs, or staying up to date on preventive care.

4. Learn about the mental health care offering

Taking care of your mental health is key to your overall well-being, which is why it’s important to understand what your plan offers should you need behavioral health care now or in the future. Step one is to see if your employer offers an employee assistance program (EAP). These programs are offered by many employers and are separate from your health insurance plan. For example, employees of The Cigna Group can utilize up to 10 EAP behavioral care visits per issue at no charge each year before tapping into their medical benefits.

If you’re seeing a therapist regularly, calculate what your out-of-pocket costs will be, taking into account your deductible, copays, and other related expenses.

5. Consider additional benefits that fit your lifestyle

When choosing a medical plan, look beyond just the basics. Many plans now include extra benefits like telehealth and virtual care services, which let you meet with a doctor by phone or video — a convenient option for busy schedules or when you’re away from home. Prescription coverage is also important, even if you only take medications occasionally, as it can save you money and make it easier to access the treatments you need.

Don’t overlook wellness programs and other perks your plan may offer. These can include gym membership discounts, mental health resources, and tools to help you track your fitness goals or manage stress. Taking advantage of these additional benefits can help you stay healthier, save money, and get the most value out of your health plan.

6. Plan for major life events

Life changes such as getting married, having a baby, or moving to a new area can significantly change your health care needs and costs. When choosing your health plan, consider any major events that may occur in the upcoming year and how they could affect your coverage requirements. These milestones may mean you’ll want a plan with broader provider networks, maternity coverage, or additional flexibility for out-of-network care.

Most health plans let you update your coverage outside of the regular open enrollment period if you experience a qualifying life event (like getting married, having a baby, or losing other health care coverage). However, planning ahead can help make this transition easier. Review your current benefits and talk to your plan administrator about what changes you can make and what paperwork you may need. Being proactive lets you focus on what matters most during life’s big moments while staying protected and financially prepared.

7. Remember, you can change plan elections each year during open enrollment

Let’s say you go with a high-deductible plan and then realize you may have underestimated how much care you’d need. That’s OK – you’re only locked into the plan for one year. You’ll need to enroll annually within your employers’ open enrollment period (often called “annual enrollment”), which typically is scheduled for a couple of weeks or longer in late fall or early winter. During enrollment, you have the option to make changes to your plan elections. This is typically the only time you can change your coverage during the year (unless you have a qualifying life event mentioned in #6 above).