Healthcare open enrollment is just around the corner. This is the designated period each year when employers choose which plans and benefits to offer their employees in the coming year.
Open enrollment begins in November this year, with selected plans taking effect on January 1. You can expect to receive your first communications from benefits providers starting next month into September, and will most likely see a price increase for 2025, so it’s time to start preparing now.
Navigating the variety of health benefit choices and price increases can be stressful for founders. Without proper guidance, employers may choose plan options that don’t fit their company’s budgets or meet their employees’ needs, leading to dissatisfaction and potential financial stress.
Burkland’s People Operations team is here to help guide your startup through the process. Read on for more information, and contact us to request your benefits consultation.
Key Considerations for Startups During Healthcare Open Enrollment
Healthcare open enrollment is a crucial time for both employers and employees. For startups, this period can have significant budget implications and set the tone for employee satisfaction throughout the year. Here are the most important considerations for employers to be aware of during healthcare open enrollment along with action items for each:
1. Budget Considerations
Balancing cost and coverage is crucial for maintaining financial stability while offering competitive benefits. When you receive your benefits renewal notice from your current provider, you might find that your costs have increased significantly.
Action Items:
- Analyze Costs: Work with a benefits consultant to analyze the cost of different plans and determine what fits best within your budget.
- Employer Contributions: Decide how much the company will contribute to premiums, HSAs, or FSAs, and how much of the cost to pass on to employees.
2. Plan Variety and Flexibility
Different employees have different healthcare needs, so offering a range of plans can help meet these diverse needs.
Action Items:
- Diversify Plan Options: Consider providing a mix of plan types, such as HMOs, PPOs, EPOs, and HDHPs with HSAs. Ensure there’s something for everyone, from those who prefer lower premiums to those who need more comprehensive coverage.
- Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): Evaluate FSA and HSA options. These accounts can help employees manage their individual healthcare expenses more effectively.
3. Legal Compliance
Maintaining compliance with healthcare regulations avoids legal issues and potential fines.
Action Items:
- Stay Informed: Keep up-to-date with federal and state healthcare laws, such as the Affordable Care Act (ACA) requirements.
- Regular Audits: Conduct regular audits of your benefits offerings to ensure they meet legal standards.
- Documentation: Maintain thorough records of all communications and changes to ensure compliance.
- Leverage Industry Experts: Consider bringing on an experienced benefits consultant to provide extra support and a system of third-party checks and balances.
4. Clear Communication
Clear communication ensures that employees understand their options and deadlines, reducing confusion and frustration.
Action Items:
- Early Notification: Start communicating about open enrollment well in advance. Use multiple channels such as emails, meetings, and internal portals like Slack or your company intranet.
- Comprehensive Guides: Provide detailed guides that explain any changes from the previous year, and any choices employees may need to make, along with deadlines.
- FAQs and Q&A Sessions: Create a list of frequently asked questions and hold Q&A sessions to address common concerns.
- Workshops and Webinars: Host educational sessions that explain the details of each option, including costs, coverage, and benefits.
- One-on-One Consultations: Offer individual meetings with HR or benefits consultants to help employees choose the best options for their needs.
5. Employee Feedback
Understanding employee needs and preferences can help tailor benefits to improve satisfaction and retention.
Action Items:
- Surveys and Polls: Conduct surveys to gather feedback on current healthcare offerings and desired changes.
- Focus Groups: Hold focus groups to dive deeper into employee preferences and experiences.
6. Streamlined Administration
Efficient administration reduces errors and ensures a smooth enrollment and ongoing management process.
Action Items:
- Leverage Payroll Technology: Look to the benefits administration features within your payroll software to manage enrollments, track deadlines, and communicate with employees.
- Outsource When Needed: Consider outsourcing administrative tasks to a benefits consultant if internal resources are limited.
Open Enrollment Support from Burkland
At Burkland, we understand the complexities and challenges startups face during healthcare open enrollment. Our open enrollment offering is designed to guide you through every step of the process. From selecting the right plans and ensuring compliance to educating your employees and managing administrative tasks, our benefits experts are here to support you.
Our comprehensive services include:
- Thorough review and cleanup of eligibility data with vendors before enrollment begins.
- Personalized benefits consultations to tailor plans to your startup’s needs.
- Cost/benefit analysis of your current plan and other available options.
- Negotiating with providers to get the best options and possibly reduce rates.
- Validating key aspects of plan design including out-of-pocket maximums, preventive care benefits, Health FSA contributions, HDHP, and HSA limits.
- Detailed compliance audits to avoid legal pitfalls.
- Employee education sessions to ensure informed decision-making.
- Ongoing support for employee questions throughout the process.
- Streamlined administrative support to reduce your HR burden.
Investing in quality healthcare benefits is not just about legal compliance; it’s about creating a workplace where your employees feel valued and supported. Let Burkland help you navigate the complexities of open enrollment, so you can focus on what you do best—scaling your business.
Contact us today to learn more about how our Open Enrollment offering can benefit your startup. Together, we can build a healthier, happier, and more productive workplace.