KC Open Enrollment Guide

Why Open Enrollment Matters More Than You Think

Most KC employees treat open enrollment as an annual hassle — click through the screens, keep everything the same, move on. That's a mistake. Your benefit elections are one of the biggest financial levers you control, and the right choices can be worth thousands of dollars per year. The wrong ones can leave money on the table or leave you exposed to unexpected costs.

Open enrollment is also the only time you can make most changes without a qualifying life event (marriage, birth of a child, job change). So even if nothing in your life has changed, it's worth pausing to ask: are my current elections still the best fit?

Decision 1: Healthcare Plan

This is the highest-stakes benefit decision for most KC employees. KC typically offers:

• HDHP + HSA: Lower premiums, higher deductible, HSA eligibility
• PPO Standard: Moderate premiums, lower deductible
• PPO Premium: Higher premiums, lowest deductible, richest coverage

The right plan depends on your expected healthcare utilization — not just your monthly premium preference. Before choosing, pull your explanation of benefits (EOB) from last year and add up what you actually spent out of pocket. Then compare that against what each plan would have cost you in premiums.

Decision 2: HSA or FSA Contribution

If you enroll in the HDHP, you can contribute to a Health Savings Account (HSA). If you're on a PPO, you may be eligible for a Healthcare Flexible Spending Account (FSA).

HSA (HDHP only):

• 2025 limits: $4,300 (individual), $8,550 (family)
• Funds roll over year to year — no use-it-or-lose-it
• Can invest the balance once it reaches a threshold
• Triple tax advantage (in, grow, out — all tax-free for medical)

Healthcare FSA (PPO plans):

• 2025 limit: $3,300
• Use-it-or-lose-it — most plans allow a $640 rollover or 2.5-month grace period
• Good for predictable medical expenses you know you'll incur

Dependent Care FSA (both plan types):

• $5,000/year pre-tax for qualifying childcare or dependent care
• Available regardless of which healthcare plan you choose
• Excellent value if you have kids in daycare, preschool, or after-school programs

Decision 3: 401(k) Contribution Rate

Open enrollment is also a natural time to review your 401(k) contribution rate, even though you can change it at any time. The key question: are you contributing at least 5% to get the full KC match?

• KC contributes 3% of your pay flat, regardless of what you contribute
• KC matches dollar-for-dollar up to 2% of your contribution
• 5% employee contribution = 5% KC contribution = 10% total going to your retirement account

If you're not at 5%, bump up by even 1%. Use the budget builder to see the take-home pay impact — it's usually smaller than you expect.

Decision 4: Life and Disability Insurance

KC typically provides basic life insurance (1x annual salary) and basic disability coverage at no cost. During open enrollment, you can purchase supplemental coverage, often without medical underwriting — meaning you don't have to pass a health exam to qualify for a higher death benefit. This matters if you've had health changes since you last elected coverage.

Review supplemental life insurance if:

• You've gotten married or had children since your last election
• You've taken on significant new debt (mortgage, car loans)
• Your spouse or partner doesn't work and depends on your income

Decision 5: Beneficiary Designations

This isn't a coverage election, but open enrollment is the ideal time to audit it. Your beneficiary designations on your 401(k) and life insurance override your will — your estate plan doesn't matter if your beneficiaries are wrong. Common situations that require updates:

• Divorce (your ex-spouse may still be listed)
• Marriage (new spouse may not be on file)
• Birth of a child
• Death of a listed beneficiary

The Enrollment Deadline Is Real

Missing the open enrollment window means you're locked into your current elections for the full plan year, with two exceptions:

1. Qualifying life events (QLEs): Marriage, divorce, birth of a child, adoption, or losing other coverage allows a special enrollment period outside open enrollment.
2. New hire enrollment: You get a separate window when you first become eligible for benefits.

Don't count on a QLE to make changes you could make now. Complete your enrollment before the deadline and save a screenshot or confirmation email as proof.