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Open Enrollment shouldn't be scary.
But missed deadlines, incorrect payroll deductions, enrollment errors, and employees who don't understand their benefits can turn a routine renewal into an HR nightmare.
Most Open Enrollment problems aren't caused by one major mistake. They're caused by small things that were missed along the way—and often don't surface until weeks or months later.
Here are seven mistakes employers should watch for.
- Starting too late
Waiting for the renewal to arrive before beginning the process leaves little time to evaluate alternatives, make decisions, prepare communications, and build enrollment systems. For a January renewal especially, waiting until November can make everything harder.
- Treating Open Enrollment like an announcement instead of a decision
Sending employees a renewal packet isn't the same as communicating benefits. Employees need to know what's changing, what action they need to take, when the deadline is, and that this may be their only opportunity to make changes until the next Open Enrollment unless they experience a qualifying life event.
- Assuming employees understand what changed
Maybe you're renewing "as is" with no changes from last year. "Same carrier" doesn't necessarily mean "same benefits" or even the same cost. Deductibles, copays, prescription coverage, networks, contributions, or plan options may have changed. Even a plan that looks similar deserves a clear explanation of what's different from the prior year.
- Not verifying enrollment data before sending it to the carriers
Missing dependents, incorrect elections, employees who should have waived, or terminated employees who are still listed can create problems that are much harder to fix after coverage becomes effective. Some errors may also be difficult—or impossible—to correct retroactively. Make sure everyone who should be enrolled is, and anyone who shouldn't be is removed.
- Forgetting payroll
A new plan year may mean new rates, and employee election changes can mean new deductions. One incorrect payroll can create employee frustration, reconciliation work, and potentially a significant financial mess. Be sure you're tracking changes so payroll can be updated correctly.
- Going silent once Open Enrollment ends
Employees may still need ID cards, carrier registration instructions, provider-search information, HSA/FSA information, or reminders about new benefits. January 1 (or your plan year start date) shouldn't be the first time employees hear about how to actually use their new coverage.
- Not having a plan for missed enrollments
No matter how many reminders you send, someone won't complete their enrollment. Employers should decide in advance what happens when an employee doesn't take action. Will their current elections roll over? Will certain benefits require a new election? What happens to an FSA contribution? Knowing the rules before Open Enrollment begins prevents last-minute decisions—and unhappy employees after it's over.
A Little Planning Goes a Long Way
Open Enrollment doesn't have to become an annual fire drill. Starting early, communicating clearly, and having a process for tracking elections, carrier enrollments, and payroll changes can prevent most of the problems that surface after the plan year begins.
At Royal Benefits, we help employers manage Open Enrollment from renewal through implementation—and continue communicating with employees after enrollment ends. Because a successful Open Enrollment isn't just about getting employees enrolled. It's about making sure the benefits actually work when they need them.
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