It’s that time of year again. Open enrollment at IU runs from Monday, Nov. 2 through Friday, Nov. 13, and for a lot of us, it’s a two-minute task. Log in, see that everything looks the same, and click through. Your medical and dental coverage rolls over anyway, so why spend more time on it?
This year is different. I’m an IU employee too, and when I read through the changes for 2027, one thing jumped out right away: if you have an HSA or an FSA, doing nothing this year could cost you. Let’s walk through what’s changing and what to do about it.
What’s changing
Starting Jan. 1, 2027, Fidelity replaces WEX as the provider for IU’s Health Savings Account (HSA) and Flexible Spending Accounts (FSAs). That sounds like a behind-the-scenes paperwork change, and in some ways it is. But three details matter for your money.
Your HSA contribution won’t go up on its own. Whatever you’re contributing now will carry over, but it won’t automatically rise to the new 2027 limit. The IRS raised the HSA limit to $4,500 for self-only coverage and $9,000 for family coverage (up from $4,400 and $8,750 in 2026). If you’ve been maxing out your HSA, you’ll need to bump your contribution yourself. Just remember that IU’s own contribution ($1,000 for employee-only coverage, $2,000 for everyone else) counts toward that limit, so your share tops out at $3,500 or $7,000.
Your existing HSA balance stays at WEX unless you say otherwise. New contributions will go to a new Fidelity HSA. The money you’ve already saved stays put unless you give consent to transfer it during open enrollment. The transfer through IU is free. Skip that step, and you’ll end up with two HSA accounts to keep track of, and any account fees WEX charges on the old one are yours to pay.
Your FSA ends unless you re-enroll. This one isn’t new, but it catches people every year. If you don’t actively sign up, you won’t have a healthcare FSA or dependent care FSA in 2027. If you count on that dependent care FSA for daycare costs, that’s a big one to miss!
Three things to do before Nov. 13
- Check your HSA contribution. Decide how much you want to put in for 2027 and update it. If you were maxing it out before, the new limit gives you a little more room. If you’re 55 or older, you can add an extra $1,000 catch-up contribution on top of that.
- Decide what to do with your WEX balance. If you want everything in one place, give your consent to transfer it during open enrollment. Either way, make it a decision instead of something that just happens to you.
- Re-enroll in your FSA if you want one. Look back at what you spent this year on things like prescriptions, copays, and daycare, and set your 2027 election from there. The healthcare FSA limit for 2027 is $3,400. Remember, only a small amount carries over (up to $660 of unused 2026 money, and $680 going forward), and anything above that is lost. It’s better to be a little conservative than to leave money on the table. And don’t forget your 2026 account: keep using your WEX card for this year’s expenses, and get your 2026 claims in by Feb. 28.
That’s it. Fifteen minutes, maybe less, and you’ve avoided a surprise in January.
While you’re in there
Since you’re already logged in, it’s worth taking a few more minutes to look at the whole picture. Life changes, and your benefits should change with it.
Did you get married, have a baby, or have a kid age out of your coverage this year? Make sure your dependents are up to date. Is the medical plan you picked years ago still the right fit for how your family actually uses healthcare? Compare the plan summaries and premiums side by side instead of assuming. And take a look at your supplemental coverage, like AD&D and critical illness, to make sure you still want what you’re paying for.
Open enrollment is also a great reminder to check your beneficiaries. It isn’t part of the enrollment screens, but it’s one of the easiest things to forget and one of the most important to get right.
Make it count
Benefits are a big part of your compensation, and open enrollment is the one time each year you get to make them work better for you. An HSA in particular is one of the most powerful savings tools out there. It’s worth a few minutes to set it up right.
If you’d like help figuring out how your HSA, FSA, and retirement savings fit into the bigger picture, that’s exactly the kind of planning I love doing. Let’s take a look together!
For full plan details, premiums, and the official instructions, visit IU’s Open Enrollment page.
This post is for educational purposes only and is not individualized financial, tax, or legal advice. The Shield Finance is not affiliated with or endorsed by Indiana University. Plan details can change; always confirm with IU Human Resources and your official plan documents.
