Navigating open enrollment can be a daunting task for small businesses, but it’s also a critical time to ensure your employees have access to the health insurance coverage they need. Whether you’re offering benefits for the first time or managing renewals, careful planning and clear communication can make all the difference.
This open enrollment guide for small businesses will walk you through each stage of the open enrollment process, from preparation to post-enrollment follow-up, so your small business can run a smooth, stress-free campaign that benefits both you and your employees.
What is Open Enrollment
Open enrollment is a designated period during the year when employees can sign up for health insurance or make changes to their existing coverage. It’s often the only time people can enroll in a health plan or switch to a different one unless they qualify for a special enrollment period due to a life event like marriage, the birth of a child, or losing other coverage.
For employer-sponsored health insurance, open enrollment typically happens once a year, and employees can choose to add or drop dependents, select new plans, or change coverage levels. For government programs like the Affordable Care Act (ACA) marketplace or Medicare, there are also specific open enrollment periods.
Ideal Open Enrollment Timeline
The most successful open enrollment campaigns start engaging employees months before enrollment begins. That means organizations should review their offerings sooner rather than later so there’s ample time to develop and execute a successful campaign.
Enrollment timelines can vary depending on what state you’re in and when your employees want their coverage to begin. Typically, open enrollment begins November 1 and goes until January 15 of the upcoming year.
If an employee were to enroll before December 15, their coverage begins at the start of the new year. However, if they enrolled after December 15, their coverage would begin on February 1 instead. This is crucial information for employees to have when deciding on their enrollment as it can cause or prevent gaps in their coverage.
To ensure your employees have information like this and that your open enrollment period goes smoothly, it’s recommended that you use this general timeline.
Pre-Enrollment
As a small business, preparation is key to ensuring a smooth open enrollment period. To help make the process efficient for both you and your employees, it’s recommended you start planning your benefits and enrollment period 8-12 weeks beforehand. Here are some steps you can take before open enrollment begins:
- Stay Informed About Healthcare Legislation: Healthcare reform is constantly evolving, and it's essential to stay up-to-date on how these changes impact your benefits offerings. Be ready to answer employee questions about healthcare changes and how they affect their options.
- Plan and Highlight New Enhancements: Make a list of any new features or updates that will improve the open enrollment experience for your employees. Whether it's improved plan options, streamlined processes, or new benefits, be prepared to communicate these enhancements in a clear and engaging way.
- Consider Online Enrollment Tools: If your company hasn't yet implemented an online enrollment program, now is the time to explore your options. Not only can online platforms simplify the enrollment process, but they can also provide your employees with the flexibility to make selections at their convenience. Allow ample time to integrate the program into your website before the open enrollment period starts.
- Track and Analyze Employee Feedback: Keeping detailed records of employee questions, concerns, and preferences will help you identify trends and areas for improvement. Use this information to tailor your communications and ensure that you're addressing your employees' specific needs. Additionally, surveying your employees about their benefits preferences can provide valuable insights into what they want and allow you to customize offerings accordingly.
- Make Adjustments in Advance: Any changes to your benefits offerings should be made well ahead of the open enrollment period to avoid last-minute stress. This gives you time to ensure that everything is in place and ready to go, minimizing the risk of errors or confusion.
- Communicate Thoroughly and Effectively: Knowledge sharing is crucial during open enrollment. Hold meetings—whether in person, virtually, or both—to review coverage options and changes with employees. Make information available through a variety of formats, including one-on-one meetings, benefit fairs, mailers, or digital tools. Additionally, distribute any brochures or pamphlets provided by your carrier, and offer helpful resources such as contact numbers and websites for further support.
By following these steps and engaging with your employees proactively, you can help them feel confident and well-informed during the open enrollment process.
Open Enrollment Period
Even with all your planning, open enrollment can be a stressful and confusing time for employees. Try to have an employee benefits expert available throughout this time to answer any questions employees may have and remind any managers to touch base with their teams.
This is the critical time that employees receive all necessary materials, including but not limited
to the enrollment schedule, deadlines, statement of current coverage, plan-specific changes, rates and summaries, open enrollment booklet and forms, and any other organization-specific information.
It’s important to guide your employees through the process. Create generous deadlines and offer frequent reminders—especially close to those deadlines. This clarification will help your employees stay on track throughout the enrollment process.
Post-Enrollment
Once open enrollment is over, your job isn’t quite done. Ensuring a smooth transition from enrollment to active benefits requires careful follow-up. Here’s a checklist of what your small business should be doing after open enrollment:
- Verify Enrollment Forms: It’s important to double-check all enrollment forms for accuracy and completeness. Make sure that no information is missing and that all forms have been filled out correctly. Catching and correcting these mistakes early can save both you and your employees from headaches down the road.
- Submit Forms to the Carrier: Once you’ve verified that the enrollment forms are accurate, submit them to your health insurance carrier promptly. Timely submission helps prevent delays in coverage activation and ensures that your employees receive their benefits on schedule.
- Ensure Compliance with Health Care Reform: Review your benefits plan to ensure it complies with any relevant health care reform provisions. Staying compliant not only protects your business but also ensures that your employees have access to the benefits they’re entitled to under current laws.
- Follow Up on ID Cards: After submitting enrollment information to the carrier, follow up with your employees to confirm that they’ve received their insurance ID cards. If anyone has not received their card, work with the carrier to resolve the issue quickly.
- Clarify Any Outstanding Questions: Make sure your employees are clear about their benefits and that no lingering questions remain. Checking in with employees after open enrollment gives them the chance to clarify anything they might not have understood about their coverage, helping to reduce confusion and ensure satisfaction.
By taking these steps, you can ensure that your employees are fully enrolled and informed while avoiding potential issues that could arise from incomplete or incorrect enrollment. This follow-up process strengthens the overall success of your open enrollment efforts and helps your small business maintain a strong, supportive benefits program.
Open enrollment doesn’t have to be overwhelming. With proactive planning, clear communication, and diligent follow-up, your small business can turn this complex process into an opportunity to better support your employees.
Still need help navigating open enrollment? Consider reaching out to an employee benefits consultant! They will help simplify the process, keep your business compliant with regulations, and ensure your employees are well-informed and happy with the benefits you provide.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.