As an Employee Benefits Advisor at Andres O’Neil & Lowe Insurance Agency, I’m here to help guide you through the often overwhelming process of annual open enrollment. This critical period is an opportunity for your employees to review and select benefits that align with their needs and life circumstances. However, as an employer, your role in facilitating this process is equally important.
Here are some essential considerations to keep in mind as you prepare for open enrollment:
1) Start Early and Be Strategic
Starting the process early allows you to assess your current benefits package and determine if it’s still meeting the needs of your employees. This is also the perfect time to compare different plans, negotiate with carriers, and possibly secure more favorable terms.
Consider conducting a survey or gathering feedback from your employees to understand their priorities. Do they value lower deductibles, or are they more interested in expanded coverage options? Use this information to make strategic adjustments.
2) Fully-Insured vs. Level Funded Plans
One of the key decisions you’ll need to make is whether to stick with a fully-insured plan or explore level funded options. Here’s a quick breakdown:
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Fully-Insured Plans: The insurance carrier takes on all the risk. These plans offer predictability in terms of costs, as premiums are fixed, and any claims are handled by the insurer. This makes budgeting easier, but it might come with higher upfront costs.
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Level Funded Plans: These plans provide a hybrid solution where you pay a set amount each month, but if your claims are lower than expected, you might get a refund. For small to mid-sized businesses looking to save on premiums, level funded plans can be an attractive option, but they require careful consideration.
3) Expanding Your Benefits Offering
Adding more benefits to your package can make your company more attractive to current and potential employees. Consider the following options:
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Standard Life Insurance: Offering a basic life insurance policy can provide peace of mind to your employees.
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Voluntary Benefits: These include options like dental, vision, critical illness, and accident insurance. While these are typically employee-paid, offering them enhances your overall package and can be a deciding factor for job seekers.
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Wellness Programs: Integrating wellness programs into your benefits package not only supports the health and well-being of your employees but can also reduce overall healthcare costs by promoting preventive care. Consider adding an Employee Assistance Program to support employees’ emotional well-being.
4) Educating and Engaging Your Employees
It’s not enough to just offer great benefits; your employees need to understand them to make informed decisions. Consider the following engagement strategies:
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Informational Meetings: Host virtual or in-person sessions where employees can ask questions and learn more about their options. Encourage employees to bring their spouses to these meetings to fully understand the robust benefits offered.
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Digital Resources: Provide easily accessible guides, FAQs, and videos that explain the details of the benefits in clear, simple terms.
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One-on-One Consultations: Offer the opportunity for employees to meet with benefits advisors to discuss their specific needs and get personalized recommendations.
5) Stay Compliant and Updated
Compliance with federal and state regulations is non-negotiable. Keep these points in mind:
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Ensure that your benefits offerings are aligned with the latest legal requirements, such as the Affordable Care Act (ACA) mandates, and that your documentation is up to date.
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Regularly review any changes in the law that could affect your benefits strategy.
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Employers are required to provide several compliance notices to new and existing employees, so make sure you have the most recent documentation.
At Andres O’Neil & Lowe, we automatically provide compliance updates to all our clients to help them stay on top of regulatory changes.
Conclusion
Preparing for open enrollment is a complex but vital task that can significantly impact your company’s success. By starting early, choosing the right plan, expanding your benefits, engaging your employees, and staying compliant, you’ll be well on your way to offering a competitive and comprehensive benefits package.
If you need guidance or want to explore your options further, I’m here to help. At Andres O’Neil & Lowe Insurance Agency, we’re committed to supporting businesses across Northwest Ohio, Southern Michigan, and Northeast Indiana in making the best decisions for their teams.
Let’s make this year’s open enrollment a seamless and successful experience for everyone involved!
