Preparing for Annual Enrollment

Preparing for Annual Enrollment

Many companies hold their annual enrollment events in the fall, allowing employees to choose their benefit coverage for the upcoming year. This is an important time for HR staff and managers to help employees understand and value their benefits.

For employees, the annual enrollment period is a chance to make decisions that could significantly impact their finances for the year ahead. It's crucial to realize that once the enrollment period ends, changing these decisions might not be possible until the next years’ enrollment window.

Here are some tips to help you navigate this process:

1. Note Key Dates

• Mark your calendar with the start and end dates of the enrollment period. You'll get details about these dates and next year’s benefits as the enrollment window opens. Pay close attention to deadlines to avoid missing out.

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2. Set Aside Time for Review

• Schedule 1-2 hours to go over the benefits information from your employer. If your spouse has benefits offered by their employer, review those as well. Gather the following:
   
  • Last year’s enrollment confirmation or check your current benefits from your paycheck deductions.
   
  • Assess your current benefits and decide if they still meet your needs.
   
  • Review next year’s benefits materials for cost increases and other changes.
   
  • Look into new benefits your employer may offer and consider if they could be useful.
   
  • Decide on your benefits for next year. Some benefits automatically roll over, while others require re-enrollment or updated contribution elections (like FSAs and HSAs). New, or previously declined, benefits will need a new enrollment.

3.Complete Your Review Before the Deadline

• Finish your review before the enrollment period ends. Give yourself enough time to understand the materials, make decisions, and complete the enrollment process.

Review Session Agenda

When you sit down to review your benefits, keep these questions in mind:

1. Any issues with last year’s benefits? Identify any problems and see if you can switch options or drop benefits     you don’t need.
2. What’s changing with your health plan premiums? Expect an increase and plan accordingly. Consider cheaper health plan options, enrolling in your spouse’s plan. Splitting coverage between two different employer plans may be your lowest cost option.
3. Adjust Health Savings Account (HSA) and/or Flexible Spending Account (FSA) contributions? Depending on your current years’ experience, you may want to make increases or decreases to the savings plans. Don’t neglect the Dependent Care FSA option if you have childcare or elder care needs.
4. Are there any benefits you missed last year? Think about any benefits you wish you had enrolled in and consider adding them this year.
5. Unused benefits? If you have benefits you didn’t use and don’t plan to use, consider dropping them.
6. Changes in your family’s needs? Review any changes in medical, dental, or vision needs that might require a different plan. For example, maybe you need to upgrade to a Dental plan that include orthodontia coverage.
7. Review family coverage carefully. Ensure all family members are correctly enrolled in each desired benefit. Checking the “Family coverage” box may not be enough. You will probably need to enroll each family member.

These tips should help you and/or your employees prepare for the upcoming annual enrollment event.

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 Written by Brian Mitchell

Brian has experience leading Total Rewards strategy and implementation for large employers.

Benefit Boosts by Brian Mitchell© – Vol 2024-015

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