By Andrew Langdon CFP®, EA, CSLP®: September 2025

As summer winds down, many veterinary professionals turn their attention to one of the most overlooked — but financially impactful — times of the year: open enrollment. Whether you’re a W-2 associate navigating benefit options from your employer, or a practice owner finalizing the benefits package you offer your team, September is the ideal time to get organized.

Open enrollment typically happens in October or November, but proactive planning now can make a meaningful difference to your finances in the year ahead. Here’s a breakdown of what to focus on — including health insurance, retirement plans, student loan benefits, and even estate planning support — with actionable insights for both associates and owners.

1. Health Insurance: PPO vs HDHP (and the HSA Advantage)

When choosing a health plan during open enrollment, veterinarians are often offered two main types: Preferred Provider Organization (PPO) plans and High Deductible Health Plans (HDHPs) — sometimes with access to a Health Savings Account (HSA).

PPO Plans:

PPOs offer more predictable out-of-pocket costs and greater provider flexibility. You can usually:

• See specialists without referrals
• Access out-of-network care (though at a higher cost)
• Pay lower deductibles, but often higher premiums

PPOs may be a better fit for those:

• With chronic medical conditions
• With dependents who need regular care
• Who prefer consistent co-pays over larger one-time bills

HDHP + HSA Plans:

HDHPs are lower-premium plans with higher deductibles, often paired with HSAs. The HSA allows pre-tax contributions (up to $4,300 for individuals or $8,550 for families in 2025), which:

• Reduce taxable income
• Grow tax-free when invested
• Can be used tax-free for qualified medical expenses — now or in the future

HDHPs may suit:

• Healthy individuals with minimal healthcare usage
• High earners looking for an additional tax shelter
• Those who want to invest for future healthcare needs or even retirement (HSA funds roll over year to year and never expire)

For Practice Owners:

When designing a benefits package, consider offering both PPO and HDHP options if possible, giving your team the flexibility to choose what fits their needs. Contributing to employees’ HSA accounts — even a small amount — can make a big impact and set your practice apart in the eyes of potential hires.

2. Flexible Spending Accounts (FSAs): Use It or Lose It

FSAs allow employees to set aside pre-tax dollars for:

• Medical and dental expenses (Medical FSA)
• Childcare or dependent care costs (Dependent Care FSA)

The key difference from HSAs: FSA funds generally must be used within the plan year (some plans offer a small carryover or grace period). Overestimating your needs could lead to forfeited dollars.

Pro Tips:

• Track your typical annual expenses for prescriptions, co-pays, and childcare.
• Use a benefits worksheet or portal tools to estimate how much to contribute.
• Double-check the carryover policy on your specific plan.

For practice owners, offering FSAs adds value to your benefits program without significantly increasing costs — especially helpful for supporting working parents on your team.

3. Long-Term Disability Insurance: Protect Your Income

Veterinarians’ greatest financial asset is often their ability to earn income over time. Long-term disability (LTD) insurance protects that.

For Associates:

If LTD is offered through your employer:

• Review how much of your income is covered (commonly 60–66%)
• Understand the elimination period (often 90 days)
• Ask whether the premium is paid pre-tax or post-tax (this determines whether the benefit will be taxable)

Supplement if needed: Group coverage is often limited or capped. You may need a supplemental policy from a private insurer or through the AVMA LIFE Trust, which offers customizable, portable disability coverage tailored to veterinarians.

For Practice Owners:

• Make sure you’re covered — your income (and practice cash flow) could be at risk if you’re unable to work.
• Explore Business Overhead Expense (BOE) insurance, which pays practice bills (payroll, rent, etc.) while you’re disabled.
• Offering LTD to your team helps build trust and long-term retention.

4. Group Life Insurance: Employer Coverage and Supplementing It

Many employers offer group term life insurance — often a flat amount (e.g., $50,000) or a multiple of salary (1x or 2x). While it’s a valuable foundation, it’s rarely sufficient for most veterinarians, especially those with:

• Dependents
• Mortgages or practice debt
• Student loans
• Long-term care obligations

For Associates:

• Find out how much coverage you receive automatically and what supplemental options are available.
• Evaluate whether that coverage stays with you if you leave your job (usually not).
• Consider supplementing through private carriers or AVMA LIFE, which offers portable, affordable term coverage designed for veterinarians.

For Practice Owners:

Offering group life insurance is a relatively low-cost benefit that provides real value to your team. It also signals a long-term commitment to employee well-being. You should also carry your own individual life insurance policy, especially if your family or business depends on your income.

5. Retirement Plan Contributions and Enhancements

Open enrollment is a good time to check or change your 401(k) contributions and investment strategy.

For Associates:

• Maximize your contributions if you can ($23,000 for 2025, plus a $7,500 catch-up for age 50+)
• Make sure you’re capturing the full employer match
• Adjust your investment allocations as needed based on age, goals, or risk tolerance

For Practice Owners:

If you offer a retirement plan, now is the time to:

• Evaluate participation rates
• Consider adding a Safe Harbor provision to satisfy IRS requirements
• Explore adding a profit-sharing component
• Review plan fees and investment options to keep your plan competitive

Don’t have a plan? Consider starting one — options like SIMPLE IRA, SEP IRA, or a Solo 401(k) can make sense depending on your practice structure and goals AND you get a start-up credit, a direct tax reduction when filing taxes.

6. Student Loan Repayment Assistance

Veterinary graduates often carry six figures of debt. Offering or using employer-sponsored student loan assistance can be a game changer.

For Associates:

If your employer offers it, confirm:

• How much is paid annually (up to $5,250 per year is tax-free through 2025)
• Whether there’s a required service commitment or clawback provision
• Whether the benefit affects your loan forgiveness path (e.g., PSLF)

For Owners:

This benefit is increasingly popular and a strong recruiting tool. Implementing a Section 127 educational assistance program lets you contribute to an employee’s student loans tax-free, up to the IRS limit.

7. Legal Plans and Estate Document Assistance

Some benefit packages include legal service plans that offer discounted or free:

• Wills and living trusts
• Financial and healthcare powers of attorney
• Legal consultations for family and estate matters

For veterinarians with children, spouses, or any assets, having estate documents in place is essential — and often overlooked.

Final Thoughts: Choose Wisely

Open enrollment may feel routine, but it’s an annual opportunity to protect your income, reduce taxes, and align your benefits with your personal goals. Don’t default to last year’s choices — review carefully, compare options, and ask questions.

• For associates: These benefits are a substantial part of your compensation — often 20–30%.
• For owners: A well-designed benefits package helps attract and retain top veterinary talent while offering tax advantages to your practice.

Taking full advantage of open enrollment isn’t just smart — it’s a crucial part of your financial planning.