We are approaching that lovely time of the year. When leaves turn colors, the weather cools down, and soups become a go-to dish. However, we also get close to Open Enrollment time for so many organizations. This will be a busy and crucial time for HR and business owners. It’s the window when employees make important decisions about their benefits for the upcoming year, which can impact their healthcare, retirement savings, and overall financial well-being. Best to ensure now that your open enrollment process is streamlined, transparent, and compliant with all regulations. Here are 4 key points for maximizing your efficiency in 2024:
- Start Early and Plan Effectively
Preparation is key and one of the most important things you can do to ensure a smooth open enrollment process is to begin early. Create a timeline that outlines the key deadlines for meetings, employee questions, and document submission for both employees and vendors.
Avoid that last-minute scramble, distribute plan documents and other materials at least 4-6 weeks before the start of open enrollment. This gives employees ample time to review their options, ask questions, and make informed decisions. One-on-one meetings can make a world of difference as well, especially for employees who may be unfamiliar with certain benefits.
- Communicate Clearly and Frequently
Clear communication is essential. Open enrollment can be overwhelming due to the sheer volume of information employees must process. Benefit plans, coverage changes, costs, and deadlines should be presented in clear, easy-to-understand language. Additionally, utilize multiple communication channels such as email, company intranets, text messages, and in-person sessions to ensure all employees receive and understand the necessary information.
Interactive tools, such as online benefits calculators and decision support systems, can help employees weigh their options and make more informed decisions based on their personal circumstances.
- Ensure Your Broker Completes EOIs for Supplemental Life Insurance
One issue I have encountered with clients is a lack of follow-up on the completion of Evidence of Insurability (EOI) forms, particularly for supplemental life insurance. Many carriers offer guaranteed issue amounts, meaning employees can obtain life insurance coverage up to a specified amount without undergoing a medical exam or providing health information. However, if an employee elect’s coverage above this guaranteed amount, they must complete an EOI to provide evidence that they are insurable for the additional coverage.
In my experience, this responsibility can fall on the broker, or the employer. So, if you are unfamiliar with your own procedure, now is the time to get that clarified. Failing to complete EOI’s in a timely manner can result in a situation where an employee thinks they are covered for a certain amount, but when a claim is made, the coverage may be denied due to the incomplete form. This can lead to significant legal and financial issues for both the employer and the employee's family.
Here are some steps to ensure EOIs are completed:
- Review Coverage Limits: During open enrollment, ensure employees are aware of the guaranteed issue limit and the need for EOI when electing higher amounts.
- Partner with Your Broker: Brokers should have clear procedures in place for tracking EOIs. Regularly check in with them to ensure all necessary forms are completed before open enrollment closes. If your broker is not keeping track, or assisting you with this, it may be a sign to rethink that relationship moving forward.
- Follow-Up Communication: Implement reminders for employees who have elected coverage above the guaranteed limit but have not yet completed the EOI. A simple email reminder or follow-up call can prevent issues later on.
- Provide Decision Support Tools
Many employees struggle to choose between complex benefit options. If you have never done so before, consider offering decision support tools to reduce confusion and help employees pick plans that best suit their individual needs. Some examples of support tools are comparison charts, cost estimators, and educational resources. Check with your broker to see if they have documents which explain complicated benefits, such as Health Savings Accounts (HSAs) and more.
isolved’s Ben Admin program also comes with a built-in cost estimator when employees complete their elections in the system. Employees are able to adjust coverages according to the per-paycheck cost and make educated financial decisions around this.
Conclusion
As your business approaches open enrollment, it’s essential to focus on thorough planning, clear communication, and compliance with regulations to ensure a smooth process. By providing the right tools, leveraging your broker partnerships, and keeping an eye on crucial details like EOIs for supplemental life insurance, companies can mitigate the risks associated with mismanaged enrollments. After all, the key to a successful benefits program lies in making sure employees understand their options and have the resources they need to make informed choices.
By investing time and effort into the open enrollment process, with programs such as isolved’s Ben Admin tool, employers not only support the health and well-being of their workforce but also protect their business from potential legal and financial risks. Consider these best practices moving forward to ensure both your organization and its employees are prepared for a successful year ahead.\
Alex Vial
HR Advisor, HR Services
Alex obtained his Bachelor of Science in Business Administration, with a focus in Human Resource Management from The University of New Orleans. He has worked in a variety of industries, including not-for-profit organizations, Telecommunications/IT, and Solar/Renewables. In his career, he has focused on human resource and legal compliance for companies operating in multiple states, Professional Development and employee trainings, employee engagement, onboarding, offboarding, and conflict resolution. Alex believes the best part of HR is helping companies create pro-employee cultures, increasing retention and reducing recruiting costs. Alex loves tackling new challenges on behalf of his customers at empact and Crescent.
His personal philosophy is “The obstacle in the path becomes the path. Within every obstacle is an opportunity to improve our condition.” – Ryan Holiday
