If you're fortunate enough to work at a company that offers benefits to its employees, you're probably hearing a lot about something called "open enrollment."

There's a reason for all the posters, benefit fairs and e-mails you may be suffering through. For most people, "open enrollment" is their once-a-year chance to make any changes to their medical or dental insurance plans, or sign up for flexible spending accounts. You may also be offered the chance to buy long-term disability insurance or other benefits.

"If you get married or have a child or have some other life-changing events, you can make changes to your health plan and benefits, but other than those kinds of major life changes, you get one chance a year to do this," says Dr. Charles Cutler, co-author of "Navigating Your Health Benefits For Dummies."

In an era in which a health crisis can destroy your finances and devastate your professional life, it's more than a good career move to pay attention. Understanding the process can be tricky, though.

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Educate yourself

At some companies, your choice may be straightforward; there is one insurance option, and it combines dental and medical.

Other employers, though, offer a variety of plans, ranging from cheaper, no-frills policies, which carry a high deductible or require pricier copays, to full-service plans that cost a lot up front but provide the most robust benefits.

It's important to understand what you are signing up for. A cheaper plan may restrict you to certain doctors or discourage visits to specialists but that might be OK if you're 23 and in good health. Conversely, a buy-up plan may let you visit more doctors for a higher price.

Also, check whether your financial responsibility is limited to a copay, such as $20 for a visit to your primary care doctor or $30 to a specialist, or to coinsurance, where you pay a set percentage of the doctor's bill, as determined by the insurance carrier. Some employers offers health savings account, with lower premiums but high deductibles.

Mental health coverage is another issue to consider. Some plans will limit the number of visits you can make to a therapist or heavily penalize you for out-of-network care.

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Weighing the issues:

What are your current needs and might they change in 2007? Are you on your own? Or do you have a family to consider? Or maybe you're considering starting a family?

Answering those questions can help you figure out what type of health insurance plan or benefits you need.

"Also, if you know you have certain chronic health conditions or are expecting certain health expenses, focus on those areas and what plans will serve those needs," Cutler says. "If you have a concern about whether a specific service is offered, you can call the health plan and ask."

Other issues to consider: might you want to join a gym next year or perhaps get eye surgery so you don't have to wear glasses? Some health plans negotiate discounts or provide reimbursements that could save you money.

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Flexible spending accounts

Flexible spending accounts let you set aside pretax dollars to pay for qualifying medical and dependent care expenses. Some examples: office visit copays, contact lens supplies, dental work and childcare. You save money because you don't pay taxes on the funds set aside in these special savings accounts.

The catch: the criteria is strict as to what qualifies as an eligible expense, so you'll need to read the plan rules carefully. Don't expect your teeth whitening to be reimbursed, for example, because it's considered a cosmetic rather than a medical expense.

The accounts also operate on a use-it-or-lose-it basis; if you set aside $1,000 for medical expenses, but only use $750, you lose the difference. So, playing it safe and estimating conservatively is probably the best strategy.

"Most people would rather not leave money in the accounts so they'll put in a little bit less," says Cutler, who recommends using the previous year's out-of-pocket expenses, as well as any estimates of future costs, as a guide for funding flexible spending accounts

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Is your office refrigerator frightful? E-mail asap columnist Lisa Singhania at This email address is being protected from spam bots, you need Javascript enabled to view it to discuss.

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