Imagine receiving a call in January, the effective date of the new Plan Year, from an employee who’s at their doctor’s office unable to confirm their medical insurance. Further investigation reveals that the insurance company never received your company’s enrollment elections. Such scenarios underscore the necessity of meticulous open enrollment (OE) planning.
Planning for Success
Successful OE hinges on thorough planning. Effective planning ensures that carriers receive your company’s OE data accurately, that file feeds for the new plan year are set up correctly, that employees receive their ID cards on time, and that payroll deductions align with the new premium rates.
Lessons from Last Year
Start your OE planning by evaluating the previous year. Identify what worked well to replicate and enhance. Consider what faltered and take steps to prevent recurrence. Seek opportunities for innovation in the process or in enhancing the employee experience, and implement them.
Renewal Planning
Engage early with your Benefits Broker or Consultant to discuss renewal expectations. Determine when they will discuss renewal outcomes, anticipate benefit cost changes, gauge employee satisfaction with current plans, and identify any potential changes in carriers or plan designs. This foundational step informs the remainder of your OE planning.
System Updates
Post-renewal discussions, update your systems to reflect changes, such as new rates or plan modifications. Decide whether your internal team, system vendors, or external consultants will handle these updates. Coordinate closely with the chosen team to integrate their timelines into your planning, ensuring configurations are completed promptly.
Enrollment Data Transfer
A critical aspect is ensuring OE data reaches the carriers. Plan the specifics, including whether data will transfer via file feeds or spreadsheets. Adjust for different carrier requirements, especially when introducing new plans or changes. Track all plan election methods meticulously and confirm receipt with carriers to ensure no disruptions in employee coverage.
Additional Considerations
- Carrier Blackout Dates: Strategize how ongoing enrollment changes (e.g., life events) will be managed post-file transfer to avoid conflicts between OE adjustments and ongoing modifications.
- Payroll Deductions: Confirm updates to payroll deductions to reflect new plan year elections, particularly important if there’s no direct integration between the enrollment system and payroll.
- Employee Communications: Collaborate early with your benefits consultant to plan effective communication strategies, ensuring employees are well-informed and trained on their benefits.
- System Testing: Conduct thorough testing of the enrollment system to prevent issues during OE.
In Conclusion
Effective open enrollment doesn’t just happen; it requires strategic foresight, detailed planning, and proactive management. By learning from the past and anticipating future needs, you can ensure a seamless transition into the new plan year, safeguarding both employee satisfaction and administrative compliance. Remember, a well-executed open enrollment period sets a positive tone for the year ahead, reflecting the organization’s commitment to its workforce’s well-being and security.
HCM Tech Advisory has over 20 years of experience and expertise in employee benefits administration, HR technology implementations, and data migration. To learn more and for a complimentary consulting review, contact us at info@hcmtechadvisory.com.
