Addressing Top Employer Concerns in Open Enrollment
Steve Taylor
Transforming outdated HR with People Strategies that drive growth, boost engagement, and scale success.
In conversations with employers and HR professionals, a recurring theme has been the struggle with ineffective open enrollment processes. The main concerns revolve around communication, understanding, and timely access to information.
Key Issues Identified
Lack of Effective Communication and Support
Employee Understanding: Many employees do not fully grasp the plans being offered. There is a notable lack of support and materials to help them differentiate between plan types, such as high deductible plans versus PPOs, or the benefits of FSAs and HSAs.
HR Expertise: While HR professionals are adept at routing employees to the right solutions, they are not necessarily benefits experts. The burden often falls on them to explain complex benefits information, which can be overwhelming without adequate support from brokers or insurance providers.
Insufficient Time to Pivot on High Renewals
Advance Notice: Employers should receive renewal information 60 to 90 days before the effective date. This allows sufficient time to assess the affordability and suitability of the benefits.
Renewal Reactions: Employers receiving renewal information too late feel trapped into renewing unfavorable plans. Early notice allows for creativity and strategic planning, such as reallocating budget surplus into HSAs or exploring alternative plans.
Recommendations for Employers
To mitigate these issues and improve the open enrollment experience, consider the following steps:
Enhance Employee Education
Comprehensive Materials: Provide detailed, easy-to-understand materials that explain the differences between plan types and the advantages of FSAs and HSAs.
Interactive Sessions: Organize webinars or Q&A sessions where employees can learn about their options and ask questions in real-time.
Timely Renewal Information
Set Expectations: Ensure that your broker or PEO provider understands the importance of timely renewal information. Follow up regularly to stay on track.
Explore Alternatives: If faced with high renewals, use the advance notice to explore alternative solutions, such as negotiating new terms or switching providers.
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Consult with Experts
Broker Assistance: Work closely with an insurance broker who can provide insights and negotiate on your behalf. A good broker will ensure transparency and help you find the best solutions for your team.
Regular Reviews: Schedule regular check-ins with your broker to discuss plan performance and anticipate any changes well before renewal time.
Conclusion
Effective communication, timely information, and proactive planning are essential to a successful open enrollment period. By addressing these key issues, employers can ensure that their teams are well-informed, satisfied with their benefits, and that they are making the most cost-effective choices for their organization.
If you're experiencing these challenges or need assistance with your benefits strategy, don't hesitate to reach out for support. Our team is here to help you navigate these complexities and find the best solutions for your needs.
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