A Guide to Open Enrollment for Employee Benefits

Every fall, small business owners from Main Street to the startup scene get a reminder in their inbox: it's time for open enrollment. If your stomach is doing backflips, you're not alone. Open enrollment can feel a bit overwhelming, especially when you're already juggling payroll, hiring, and everything else that comes with running a growing business.

The good news? It doesn't have to be complicated. At Benefits Made Great, we walk local business owners through open enrollment all the time. Let’s break down what open enrollment for employees is, how it works, which benefits can be chosen, and how to prepare for the upcoming enrollment period.

If you’re ready to pick a benefits plan, you can call us at (913) 243-3412 or fill our contact form, and we’ll reach out to you.

What Is Open Enrollment for Employees?

Open enrollment for employees is the yearly window for your team to sign up for, change, or drop their workplace benefits. Think of it as an annual check-in on medical coverage, dental insurance, retirement plans, and more.

Outside of this window, employees aren't allowed to make changes to their benefits. The only exception to this rule is a qualifying life event. Getting married, having a baby, or losing coverage from a spouse's job are a few examples. Open enrollment is the one guaranteed chance each year for your employees to make sure their benefits still fit their needs.

The open enrollment season is important for business owners too. A smooth open enrollment is a great way to build trust with your team and show them you care about their wellbeing. A confusing one can leave employees frustrated, or worse, stuck with coverage that doesn't actually work for them.

How Does Open Enrollment Work?

Here's how open enrollment works, step by step, for most small businesses.

1. Review your current plans. You and your broker look at renewal rates and decide if any changes are needed for the year ahead.
2. Give your team a heads-up. Let employees know about the upcoming enrollment period. This is usually done a few weeks before it opens. You have to share plan details, costs, and any changes from last year.
3. Employees review their options. Once the enrollment period opens, your team compares plans and decides whether to keep their current coverage, switch to something new, or add a family member.
4. Employees submit their choices. Elections are turned in before the deadline, whether that's through a paper form, an HR platform, or your broker.
5. Elections get locked in. After the window closes, payroll deductions are updated and the new benefits take effect, typically on January 1.

The Two Open Enrollment Styles

Employers also get to choose between two enrollment styles. Each approach has trade-offs, so it's worth talking through with your broker which one fits your team.

• Active enrollment: every employee must resubmit their choices each year
• Passive enrollment: benefits roll over automatically unless someone makes a change.

Benefits Available During Open Enrollment

Did you know that open enrollment usually covers more than just health insurance? That’s right, depending on what your business offers, your team might be able to choose from:

• Medical insurance: This includes HMO, PPO, or high-deductible health plans. This is usually the big one for employees, since it covers everything from routine checkups to hospital stays. HMOs tend to have lower costs but need referrals for specialists, while PPOs cost more but give employees more freedom to see the doctors they want.

To learn more about HMOs, PPOs, and how to choose the best one, read our how to choose a group health insurance plan guide.

• Dental insurance: This helps cover cleanings, fillings, and bigger procedures like crowns or root canals. Most dental plans also cover two routine cleanings a year at little to no cost, which makes it an easy benefit for employees to actually use.
• Vision insurance: This is for eye exams, glasses, and contacts. It's a small monthly cost that can save employees a good deal of money, especially for anyone with kids who need glasses or contacts. Check out how we could help you with your vision insurance plans
• Disability insurance: This can replace part of an employee's income if they can't work due to an illness or injury. Short-term disability covers a few months, while long-term disability can be provided for years, giving employees a safety net if something unexpected happens.
• Life insurance: This gives employees and their families some financial peace of mind. Many employers offer a basic policy at no cost to the employee, with the option to buy additional coverage for themselves or family members. To learn more about how we can help you, check out our life insurance services.
• Retirement plans: This includes options like a 401(k) or 403(b), along with any employer match. These plans are a major draw for job seekers. An employer match is essentially extra compensation for your team, making it one of the most valued benefits you can offer.
• Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): These let employees set aside pre-tax money for their medical bills. FSAs are tied to your employer plan and usually have a use-it-or-lose-it rule. HSAs on the other hand are owned by the employee, roll over year to year, and are only available with high-deductible health plans.

Every business is different, so your benefits plan might look a little different from the one next door. That's actually a good thing. It means you can build a package that fits your team and your budget.

The Open Enrollment Period

The open enrollment period is the designated window of time when employees are allowed to choose their workplace benefits. Here’s what you need to keep in mind about the open enrollment period:

• When enrollment starts: Most employers hold open enrollment one to two months before the new plan year begins. This gives HR and payroll enough time to process the paperwork. Your employees must follow the strict deadline you set for your business.
• State Individual Plans: State-run exchanges like Covered California have separate deadlines. Make sure your team knows that your company’s deadline is completely different from the state's public insurance marketplace deadlines.
• Enrollment period duration: For most small businesses, the duration of this period is between two and four weeks, though some companies keep it open a little longer.

Whatever dates you land on, what’s important is to give your team enough time to read through their options, ask questions, and make a confident choice, rather than rushing through the process at the last minute.

How to Prepare for Open Enrollment

A little prep work goes a long way. Whether you’re a business owner in Kansas or Missouri, or anywhere in between, this is what you need to do when getting ready:

• Start 60 to 90 days early: Begin reviewing carrier plans, financial contributions, and premium rates at least two to three months before your open enrollment period begins.
• Communicate early and often: Send multi-channel reminders through email, text, and team meetings to prevent missed deadlines and late submissions.
• Simplify the paperwork: Use benefit summaries in plain English so employees can easily understand their coverage tiers, deductibles, and co-pays.
• Provide dedicated support: Schedule one-on-one Q&A sessions for employees through your HR team or insurance broker to address specific family medical needs.
• Compare, don't just renew: Take a fresh look at your options each year to counter rising healthcare costs instead of automatically auto-renewing last year's benefits.
• Audit compliance requirements: Ensure you distribute mandatory federal and state notices, including the Summary of Benefits and Coverage (SBC) and any applicable ACA or ERISA disclosures.

Common Open Enrollment Challenges

Even with good planning, open enrollment can hit a few bumps. Some of the most common challenges include:

• Confusing terms: Words like premium, deductible, and coinsurance can easily trip up plenty of employees, and that confusion can lead to making poor choices during open enrollment.
• Incorrect or incomplete paperwork: Employees are busy, and benefits paperwork often lands at the bottom of their to-do list.
• Missed deadlines: Rushing the enrollment process leads to mistakes, missed deadlines, and frustrated employees.
• Keeping up with rules: Benefits laws and requirements can shift from year to year, and it's tough to track them while also running a business.

How We Can Help During Open Enrollment

Open enrollment doesn't have to be something you dread every year. Every challenge has a way to overcome it, and that's exactly where we come in. At Benefits Made Great, we work with local entrepreneurs, startups, and growing businesses to take the guesswork out of open enrollment.

• Confusing terms: We translate benefits jargon into plain English your employees actually understand, so they can make confident choices instead of guessing.
• Incomplete paperwork? We build a simple, guided enrollment process with checklists and reminders, so employees submit everything correctly the first time.
• Missed deadlines? We help you build a realistic schedule from day one, so nothing gets rushed at the last minute.
• Keeping up with shifting rules? That's our job, not yours. We stay on top of benefits laws and requirements so you don't have to.

From choosing the right plans to guiding your employees through their choices, we're here to make open enrollment one less thing on your plate. Reach out to us today at (913) 243-3412, and let's get your business ready for a great open enrollment season.