Kick off open enrollment the right way

A recent study found that 80% of Americans rank health benefits among their top priorities for workplace benefits, however; more than half feel “overwhelmed” by annual open enrollment and nearly half cannot identify common health insurance terms like deductible or copay.

A lack of understanding can lead to employee engagement challenges, confusion around plans and offerings, and ultimately low or poor utilization of the available benefits. Poor utilization can result in higher costs to both the member and their employer.

For employers, health insurance is a significant investment that has a huge impact on employees and their families. This is why it’s crucial to kick off enrollment season the right way by empowering employees with the information they need to make informed health-related decisions. Here are five tried-and-true best practices for helping the open enrollment process go seamlessly for all involved.

1) Start planning now

If you are working with a broker or a third-party administrator (TPA), ensure everyone is on the same page and aligned to the same objectives. This includes establishing timelines that meet paperwork deadlines and enable market analysis, plan reviews, provide education and host open enrollment meetings. All of this can take time — my advice is to start planning sooner rather than later.

2) Know current offerings and utilization data

Partnering with an administrator to understand how your health plan is performing is vital. Some questions to consider: What are your goals as an organization? Does your plan meet the needs of your employee population? What are your cost drivers and risks? What services are most utilized by your employees? The answers to these questions will help you create a customized benefits plan strategy to best meet the needs of your plan members.

3) Variety in plan design

Benefit plans with options are a must-have in today’s employment market. When employees have a choice of health plans and cost-sharing designs, they are able to find an appropriate match for their unique coverage needs. Some individuals may be concerned with their monthly costs and want a lower premium option. Others may prefer a higher monthly cost and lower out-of-pocket expenses when utilizing their benefits. Either way — options are essential to help employees get the most out of their plans and coverage.

4) Connect with and educate employees (and their dependents)

Administrators have tools and resources that clearly explain health plan benefits and options to employees, including enrollment kits, flyers, videos, and podcasts. Administrators can play an important role to help ensure employees receive a comprehensive overview of the benefits available so they can make the best selections for themselves and their families. Additionally, by participating in open enrollment meetings, administrators can help communicate plan nuances and explain how to use the benefits to their full potential.

By including decision-making dependents in these meetings, when possible, it allows the family unit to become more informed. This is important because the employee isn’t always the person driving health care decisions. Continuing to communicate to members on wellness, preventive care and how to properly use their health insurance on an ongoing basis is a critical part of a successful benefits strategy.

5) Review benefits regularly

Just because open enrollment is over doesn’t mean you stop thinking about benefits strategy until next year. After enrollment deadlines pass, employers need to pivot their focus to gathering insights and feedback from employees about their benefits. What’s more, administrators should provide utilization data and trends to help understand and act on the information to manage costs and improve the health of employees — as well as save the employees and the plan money in the long run.

Read more: 5 generations of employees share their real open enrollment wants and needs

Employee benefit plans are complex. Not relying on experts like your TPA can fuel confusion about plans for employees and lead to costly missed opportunities for employers. Benefit plan experts are the key. They dig into utilization, trends, and make benefit adjustment recommendations to optimize the plan. Trust the experts — reach out to your administrator today. Have a happy, healthy open enrollment season!

Diane L. Deinhart, vice president, Strategic Partnerships at Nova Healthcare Administrators, Inc.