It’s that time of year again! Many companies are gearing up for their annual open enrollment period. Having led numerous open enrollments for companies of varying sizes and stages, I’m here to share some insights to help you navigate this crucial process smoothly. While each company’s approach may differ depending on its size and resources, the foundational steps remain consistent across the board.
Key Steps to a Successful Open Enrollment
1. Select a Broker You Trust
Choosing a broker who will act as your advocate is incredibly important. They should be available for internal project planning, team communications, and liaising with insurance carriers. Ensure your team has someone with at least some experience in benefits administration or someone in a leadership role who asks insightful questions to guide the process. If your broker isn’t responsive and educating you as they guide you through the process, it’s worth considering a new one.
2. Review Competitive Quotes Early
Work with your broker to review quotes from 2-3 carriers 90-120 days before open enrollment begins. Your broker should present this information, but you may need to reach out to begin the process. Being proactive allows you plenty of time to find the right balance of plans for your team. Ensure the carriers offer networks in your employees’ locations, especially if offering an HMO option. Learn the lingo and understand the difference between deductibles, out-of-pocket maximums, in-network and out-of-network coverage, co-pays, and co-insurance. Decide on the company’s contribution toward each plan and ensure it’s clearly communicated. Be aware of any state-specific requirements like age-banded rates, which your broker can help with.
3. Embrace Automation
Ask your broker about available automation options for the open enrollment process. While manual paperwork is an option, it’s time-consuming and can be prone to errors or omissions. Automating the process can save significant time and allow you to focus on revenue-generating activities. Embracing technology from the beginning is a smart move.
4. Have a Solid Plan
Always verify your broker’s premium calculations to avoid costly errors. Collaborate with your broker to prepare and review employee communications. Conduct a live training session—virtual training works well for remote teams and provides a recording for those who can’t attend. Send out reminders with pre-prepared messaging and follow up with late enrollments. Securely send completed enrollment forms to your broker to protect personal health information (PHI). Finally, update your HRIS with the new premium contributions and review the pre-payroll register report to ensure accuracy before finalizing payroll.
5. Integrate with Other Business Processes
Update your onboarding process with the new employee education materials to streamline future enrollments. If you have the capacity, create and send a total rewards survey to your team before open enrollment to identify exactly what benefits your team is interested in.
Common Challenges During Enrollment
Company Size
The size of your company can greatly impact the complexity of the enrollment process. Larger companies may face more challenges coordinating with multiple departments and ensuring that all employees receive the necessary information.
Resources
Limited resources can make the enrollment process more challenging. Small to medium-sized businesses may not have dedicated HR staff to manage the process, making it essential to rely on your broker for support.
Brokers
Not all brokers are created equal. If your broker isn’t proactive or responsive, it can slow down the entire process. Ensure you have a broker who is committed to guiding you through each step.
Late Starts
Starting the enrollment process late can lead to unnecessary stress and errors. Begin preparing at least 90-120 days in advance to ensure everything runs smoothly.
Navigating open enrollment doesn’t have to be a daunting task. By selecting a trustworthy broker, reviewing competitive quotes early, embracing automation, having a solid plan, and integrating with other business processes, you can ensure a smooth and efficient enrollment period.
Remember, preparation is key. The more proactive you are, the easier the process will be for both you and your employees.
