Open Enrollment Checklist: Review, Communicate, Schedule

Review first, announce second

Open enrollment runs more smoothly when you settle your decisions before employees see anything. Changing a contribution or dropping a plan option after the announcement is what creates confusion, rework and angry emails.

Start with what changed at renewal, then compare it side by side with last year. That comparison is also the core of your employee message, because people mostly want to know what is different and what it means for their paycheck.

• Plan options, provider networks, and any changes to benefits, deductibles, copays or prescription coverage
• Your employer contribution and the resulting payroll deduction for each coverage tier
• Eligibility rules, waiting periods, and how new hires and part-time staff are treated
• Dependent rules and how you verify dependents
• Dental, vision, life, disability and voluntary benefits, including whether anyone actually uses them
• Pre-tax setup under your cafeteria plan, plus any FSA or HSA features (annual limits are set each year, so check the current figures)
• Any retirement plan changes you want to promote during the same window

Check the notices and paperwork

Open enrollment is also when several legal notices and documents come due. The exact list depends on your size, your plan type and whether your plan is insured or self-funded, so ask a licensed advisor for the list that applies to you.

Two items catch employers off guard. The Medicare Part D creditable coverage notice is generally due before Medicare's fall enrollment period begins in mid-October, so if it has not gone out, confirm with your advisor today. The Summary of Benefits and Coverage should also be available when employees enroll.

• Update plan documents, wrap documents and your cafeteria plan document to match any changes
• Confirm that your employee handbook and benefit summaries match the new plan year
• Review the notices your plan type requires and confirm that each has been sent
• Check your ACA status. At 50 or more full-time equivalent employees, you are generally an applicable large employer, and employees averaging 30 hours a week count as full-time. The affordability test is set each year, so check the current figure with a tax professional.
• Confirm that your payroll system can handle the new deductions and tier structure

Communicate so people can actually decide

A benefits guide full of insurance vocabulary does not help someone choosing between plans on a break. Plan on a one-page comparison in plain language that answers three questions: what is changing, what do I need to do, and by when.

If your team is bilingual, translate the key materials rather than hoping someone will interpret. Have a person who speaks the language review the translation, because insurance terms often translate badly. Where translated notices may be required, confirm the details with your advisor.

Think about how your workforce really receives information. Warehouse, construction and healthcare teams may rarely sit at a computer, so consider shift-friendly sessions, onsite or virtual enrollment help, and printed materials at the break room or job site.

• Say what happens if an employee does nothing. Some plans carry elections forward, while others, such as FSAs, usually require an active choice.
• Explain how to waive coverage and whether you collect anything when someone does.
• Remind employees that changes after the window generally require a qualifying life event, and tell them how to report one.
• Name one person and one contact method for questions.
• Encourage employees to review dependents and beneficiaries, not just medical plans.

Dates to put on the calendar

Work backward from the date new coverage takes effect. For many California employers that is January 1. If that date is close, start this week. If your plan year starts on another date, use the same sequence.

• Renewal decisions final: the date your carrier or administrator needs your signed renewal and plan changes. Get it in writing.
• Materials approved and translated: finished before the window opens, not during it.
• Window opens: send a kickoff message with the last day stated clearly.
• Midpoint reminder: target only employees who have not yet acted.
• Window closes: pick a firm last day and a short, defined period for fixing errors.
• Enrollment data submitted: reconcile elections and send them to carriers and payroll by their cutoff dates.
• Deductions tested: confirm payroll is taking the right amounts before the first paycheck of the new plan year.
• Confirmations and ID cards: check that employees received them, especially new enrollees.
• Early next year: note year-end reporting items, such as ACA forms if they apply to you, and confirm the current deadlines.

What to do this month

You do not need to do everything at once. A short, ordered list is enough to keep things moving and reduce last-minute scrambles.

If a step feels uncertain, such as notices, ACA status or plan design, a benefits review with an advisor is one option for getting a second set of eyes before the window opens.

• This week: confirm your effective date and get your carrier cutoffs in writing.
• This week: verify that the Medicare Part D notice and other required notices are on your list.
• Next: finalize contributions and plan options, then build the side-by-side comparison.
• Next: have your translated materials checked by a fluent reader.
• Then: schedule enrollment sessions that fit every shift, and put the window dates on a shared calendar.
• Before the window closes: assign someone to track who has not enrolled and follow up.

This article is general education for employers, not legal, tax or plan advice. Benefit rules and options depend on your group size, location and plan, so talk with a licensed advisor before making changes. Sixth Man Employer & Insurance Services, CA Insurance License #0I01929.