Navigating Open Enrollment Season: A Guide for your Employees

Introduction

Open enrollment season is upon us, and for many employees, it can be a bit overwhelming. Choosing the right benefits can have a significant impact on your financial well-being, provider access, and overall health. To help your employees make informed decisions, we've put together this guide to navigating open enrollment effectively.

Understanding Open Enrollment:

For starters, it is important for your employees to understand what your company's open enrollment is, and why it takes place. Open enrollment is the annual period during which an employee and their family can make changes to their benefit selections. It's a crucial time to review their current benefits and decide if any adjustments are needed. Oftentimes changes occur due to family income adjustments, or changes in medical needs. Even if an employee is satisfied with their current benefits, it's wise to reevaluate them, as personal circumstances and the available options may change from year to year.

Sometimes they may even be forced to change! There are instances where your company might switch carriers, or change health plan offerings due to risk adjustments or avoiding a rate increase. In these instances it is especially important for employees to assess their options, and consult resources such as provider searches or benefit enrollment specialists available to endure a smooth transition.

It is important to note as well that, even though an employee's rates or plans may change at open enrollment, their accumulated deductibles and out of pocket expenses may still roll-over. Unless your organization has a January 1st renewal date, an employee's deductible credits and out of pocket maximums will be retained until January 1st, regardless of when your open enrollment takes place.

Reviewing Offered Benefits:

An employee should start their enrollment as soon as possible to leave them ample time to review plans and make informed decisions. What health insurance plan are they enrolled in now? Do they have ancillary coverages like dental, vision, and disability? Are they contributing to a retirement plan like a 401(k)? Make a list of your current benefits to have a clear picture of what you have.

This is where it is crucial to partner with a benefits brokerage that offers technology which allows your employees to view prior and current elections, rates, review carrier resources, helpful value-adds on the plan, etc. so they understand fully what the plan offers.

Evaluating Needs:

As noted above, it is important for employees to consider any changes in their life that might affect present or future benefit needs. Did they get married, expecting a child, or change living situations? These life events can impact the type and level of coverage they require. Additionally, thinking about current state of health and financial goals is crucial. Are they looking to save more for retirement, and would like to utilize an HSA for future savings? If expecting a baby in the next year, is it more important to enroll into a higher cost premium plan in order to reach a deductible or out of pocket maximum faster?

Reviewing Plan Options:

Once needs are assessed, it's time to explore compare benefit offerings. Most employers offer multiple plans, so employees need to pay attention to factors such as varying premiums, deductibles, and out-of-pocket costs. Consider the network of healthcare providers, prescription drug coverage, and any wellness programs or services offered are fundamental to one's assessment as well. This type of comparison should be quite easy for employees to do if your company is using the correct benefits administration technology.

Seeking Expert Guidance:

Your HR department or benefits administrator should provide contact information and make themselves available in the event employees have questions or need clarification. This can provide valuable insights into the various plan options and help employees make informed choices. Education is key. Most benefits platforms allow helpful explanation videos which can decrease the volume of questions being asked directly to HR staff.

Maximizing Benefits:

Remember that open enrollment isn't just about medical insurance. It's an opportunity to optimize your entire benefits package, and give your employees more coverage options to stack. Oftentimes these options are 100% voluntary and do not require an employer contribution, and provide the employee with a more robust benefits package.

When contribution is present, make sure employees are aware and take advantage of any employer-sponsored programs, such as Basic Term Life, Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs) to save money on healthcare expenses.

Deadlines:

Open enrollment will normally have a very set window, so make sure employees are notified to mark the dates on their calendars so as to not miss any deadlines. If an employee fails to make selections during this period, they may be locked into prior benefits for another year, missing out on potential savings and coverage improvements.

Conclusion:

Navigating open enrollment season doesn't have to be a daunting task for your employees. With the right tools and measures, employees will have the resources needed to carefully review available options based on their specific needs.

Health benefits are an investment in your employees future and peace of mind - so it is important to partner with a brokerage that ensures you get it right.

Reach out today to find out how you can partner with Proper to achieve success during this year's open enrollment!