Key Takeaways
- Open enrollment is the annual timeframe when employees can make changes to their benefits elections.
- Preparation, clear communication, and helpful guidance can help employees make informed benefits decisions.
- Benefits brokers can help with these tasks and more for a smooth, compliant, and employee-friendly open enrollment period.
Open enrollment is on the horizon. And if this is your first time going through it as an employer or business owner, it may be spooking you more than a ghost on Halloween.
You’ve heard all about it. You may even be dreading it.
But I can tell you this: when armed with knowledge of what to expect and how to navigate it, open enrollment becomes much less frightening and a lot more routine.
We’ve answered some of the most common open enrollment questions asked by employers who have been where you are now. Consider these for early guidance and head into the season with confidence.
What is open enrollment, and why does it matter?
Open enrollment is the annual period when employees can review and make changes to their benefits.
Since health and wellness benefits are highly valued by employees, this is a very important time for them to make critical decisions about their care for the next year.
For employers, open enrollment is a chance to build trust and rapport with staff. Targeted, honest communication about timelines, plan changes, costs, and new offerings shows employees you value their well-being and helps them make informed decisions about their care.
When should I start preparing for open enrollment?
It’s never too early to start thinking about open enrollment.
Being proactive in what is open enrollment’s “off-season” can help your business navigate the process with less stress. In general, it’s a good idea to start preparing at least three to four months before it begins.
Planning ahead gives you ample time to go over plan renewal rates, analyze employee feedback, finalize plan designs, and develop a solid communication plan. Partnering with a benefits broker like LewerBenefits can help you get ahead of open enrollment tasks and reduce stress throughout the process.
What do I need to communicate to employees ahead of open enrollment?
As mentioned earlier, open communication with employees ahead of and during open enrollment can help build trust within your organization. Use a multi-channel communication strategy that meets employees where they are. Think email campaigns, benefits guides, webinars, FAQ resources, and one-on-one support sessions.
An SMS messaging service like YourCo can help you communicate open enrollment updates with employees via text so you can reach them whether they work out of the office or in the field.
Ensure communications include clear explanations of things like plan options and their costs, enrollment instructions, and deadlines. If plan offerings or costs are changing from the previous year, be sure to let employees know well in advance.
Also, don’t assume employees understand how their plans work. An easy-to-understand guide can be very helpful as they head into open enrollment.
Do employers need to review benefits offerings every year?
Yes! Employers should evaluate the benefits they offer employees every year.
It can be easy to offer the same plan year over year. However, as your workforce evolves, so might their needs. Review your medical, dental, and vision plans each year to ensure they still provide value to your employees. Also consider adding “ancillary” or “worksite benefits” such as life, accident, and critical illness coverage to identify any gaps in coverage.
Keep an eye on which benefits employees are using the most, review claim trends, and gather employee feedback to ensure the plans you offer are being used as intended. Consider working with a benefits broker to identify plans that meet the needs of your workforce. They can help you adjust plan designs while also working within your budget.
How can I help my employees make smart benefits decisions?
Are you confident employees have the knowledge and understanding they need of current plan offerings to make informed decisions about their benefits? If an employee signs up for a plan that doesn’t meet their needs, it could have major financial repercussions for them.
Employees are more likely to use their benefits when they understand their value and the role they play in everyday life. Educational resources, personalized guidance, and decision-support tools can help improve understanding. So can sharing real-life scenarios in which specific benefits prove useful.
Compiling and sharing this information with employees can be time-consuming. This is another example where partnering with an experienced benefits broker can help. They have the tools and resources you and your employees need to make these major decisions and can even help answer employee questions, freeing up valuable time you need to focus on your business.
Can employees make changes to their benefits outside of the open enrollment period?
Yes, but only in special circumstances.
“Qualifying Life Events” (QLEs) may open a separate enrollment opportunity. Circumstances such as marriage, divorce, birth or adoption of a child, and loss of health coverage would be considered QLEs.
To qualify for QLE privileges, employees must submit supporting documentation within a specific timeframe to their HR or benefits administrator. Then, they may have a special enrollment period to either enroll in or change coverage. This timeframe can vary depending on the QLE and coverage type, so employees should verify deadlines with HR or their benefits administrator.
QLE timelines are absolute. If the employee misses them, they must wait for the next open enrollment period. Ensure awareness by clearly communicating the QLE process and deadlines. Your benefits broker can help with this as well!
Is it possible to handle open enrollment tasks in-house?
Sure!
But, as you can see, it takes a lot of time, planning, and specialized knowledge for things to run smoothly. If you miss reporting or filing deadlines amidst the chaos, you could be subject to hefty fines.
As a business owner, your time is incredibly valuable. If managing open enrollment feels overwhelming, a benefits broker can help shoulder the workload. They can help with renewal strategy, carrier negotiations, plan design, employee communication, and a whole lot more, so you don’t have to.
With over 70 years of experience helping businesses with benefits administration, LewerBenefits offers the resources, support, tools, and personalized service you need to remain compliant. We have relationships with top carriers and will work with you to deliver plans that meet employee needs and your budget.
If you’d like additional support with your benefits strategy, we’re here to help. Contact us today for a proposal and find out how LewerBenefits can help with open enrollment and other benefits administration tasks.
