HR leaders on what really goes into open enrollment

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Anyone who has ever interviewed or been hired for a job knows that many human resource professionals' job descriptions are centered around hiring, firing and recruitment. For many people, that's the extent of their interaction with HR. Most employees don't realize the wealth of knowledge and resources their HR colleagues possess. That is especially true when it comes to the annual enrollment period, or "open enrollment."

Open enrollment is when employees can enroll in employer-sponsored health insurance plans or change their current coverage levels. In the recent blog post, Your Most Important Open Enrollment Questions Answered, our aim was to provide the information readers would need to make the right health care decisions for themselves.

But this piece is different. We're using this article to shine a light on those human resources managers and benefits leaders who band together to make open enrollment happen. We focused on the unseen duties and responsibilities these unsung heroes take on every year. And we spoke to HR professionals from various industries to get their firsthand opinions and advice.

Open enrollment: A recap

One of the things these HR leaders agreed on was that many workers fail to understand the importance of open enrollment. Even if employees feel like their lives haven't changed over the past 12 months, enrolling in a health plan can be confusing. That's why it's important for a company's entire workforce to pay attention to open enrollment forms and emails. If the answer to any of the below questions is 'yes,' employees will likely need to adjust their selections.

Have you had any major life changes in the past year?
Do you anticipate any major changes in the coming year?
Will you turn 26 years old (i.e., age out of a parent's health plan)?
Will you conceive or adopt children?
Will you get married?
Has your prescription medication changed?
Does your company's wellness plan qualify you for discounted premiums?
Has your company modified its existing life, pet, disability or prescription drug plan?

Of course, if anything unexpected happens during the course of the year that might impact an employee's insurance, they shouldn't worry. Special enrollment periods are designed to be a safety net for uncontrollable or unforeseen events. Employees who experience a qualifying event just need to apply as they normally would during the open enrollment period, and they're covered. Employer-sponsored health plans must provide a special enrollment period of at least 30 days during times of transition.

What do human resources departments do for employees during open enrollment?

For most employees, the enrollment period lasts a few weeks and requires checking a few boxes. It's not that simple for HR pros.

The pandemic has created extensive remote or hybrid workplace environments, which have made employee communication more challenging. Samantha Reynolds, marketing manager at the professional employer organization Helpside, says her HR team creates videos and PDF tutorials, uses online enrollment options as well as paper forms, and provides mailed and emailed reminders to reach as many employees as possible.

While sending employees a survey or some paperwork about health insurance usually takes only a few minutes, there are countless steps to take to ensure compliance.

Planning open enrollment starts long before a survey. Our team spends a lot of time answering questions, discussing issues, and clearing up doubts throughout the process. Although educational materials are available, most employees lack knowledge and need guidance. - Bartek Boniecki, Head of People at the biometric photo service, Passport Photo Online

Boniecki also says employees tend to postpone complex decisions, so HR pros are tasked with repeatedly reminding them to complete their paperwork. "Open enrollment fatigue is not a myth," he says. "HR departments are often more responsible for decisions than employees themselves, so they put a lot of effort and time into the process."

The behind-the-scenes work that goes into health coverage can be dizzying. Rachel Cohen works for Red Clover, a human resources management consultancy. She explains that large companies negotiate with benefits providers through annual requests for proposals (RFPs). And even if a company is satisfied with its current plan, benefits leaders often negotiate for improved rates. Once benefits packages are chosen, policies then have to be built into a company's payroll processing system.

"The last, and most critical part, is communicating with employees," Cohen says.

She encourages human resource managers to create and distribute a benefits guide and lead a company-wide function to explain the benefits package and answer any questions. She says the entire process takes between three and six months before the open enrollment period begins.

How much time do human resources departments spend on open enrollment?

Spending several months on open enrollment might sound like a lot, but it is more common than most people think. Human resources professionals who work for smaller companies may spend a bit less time because they have fewer employees and a smaller variety of benefits and plan choices. But Karen Condor, an HR expert at Clearsurance, considers the annual enrollment period a year-round commitment.

"Since health care premiums for employer-sponsored plans have risen substantially, upper management expects HR professionals to help them manage costs by researching and presenting them with the most affordable plans," Condor says.

The HR department also spends a large amount of time outside of open enrollment reviewing employee benefits data and compiling reports for management to steer them to the benefits package that is most useful to employees. - Karen Condor, HR Expert, Clearsurance

Progyny is a fertility benefits provider that works directly with employers who offer their family-building insurance to employees. Open enrollment from the vendor perspective is equally busy.

"Q4 is one of the busiest times of year for us and our clients," says Melissa Maldonado, vice president of client operations. "The year starts with a cross-functional retrospective to review what worked, opportunities for improvement, and feedback from clients on our previous plans. We then look into our client’s preferred communication strategy, what has been successful with their employee population, where we can help, and providing them with the tools to highlight their new or changing fertility and family building benefit."

Do non-HR employees understand how much work goes into open enrollment?

Most non-HR employees understand the concept of "open" or "annual" enrollment. They know it comes around once a year for a few weeks and that they have to make decisions about health coverage for the following 12 months. Unfortunately, most of the human resources professionals we spoke to feel that their colleagues have limited knowledge about how much work goes into their health insurance.

Reynolds compares the open enrollment period to the Wizard of Oz. "So much of the work is done behind the scenes," she says. "People see the outcome, but not the work done to create it."

Employees who miss their enrollment window cannot make changes for a full year unless they experience a life event that would make them eligible for a special enrollment period. One reason a company's workforce might seem uninterested in its health plans is because of misconceptions. Some employees might believe that this year's benefits package is just a recycled version of last year's. Other employees think they need to pay attention to their coverage or payroll only when something goes wrong. The misunderstanding in both cases boils down to a lack of visibility.

"Most people are focused on their individual responsibilities and contributions to the organization," Cohen says. "They typically do not truly understand the amount of time and effort that is put into a benefits plan design and implementation."

For vendors, it is critical that employees and clients understand any new resources and options in their insurance coverage because most of what they're offering focuses on employee needs. "The annual enrollment period is an important time for employers to showcase what's available, what's new, and how they're taking care of their workforce," Moldonado explains.

At the end of the day, the success or failure of a company's annual enrollment period can impact its image and employee experience. A tarnished image can impact that company's ability to recruit, hire and retain talent. And for employees, an incorrect decision could have lasting effects throughout the year. That's why HR professionals strive to make sure their work is mistake-free.

The bottom line on the open enrollment period

For HR professionals, the open enrollment period is busy and exciting but can be frustrating, too.

Employees from across the company submit multiple forms in various formats and each of them requires careful attention. Some employees even submit forms after published deadlines, adding pressure to human resources managers' already frayed nerves. And while human resources managers encourage questions when instructions are unclear, providing individual guidance adds extra time and effort to the enrollment period.

When it comes to annual health coverage, HR and benefits leaders walk a tightrope between keeping colleagues informed and burdening them with too much information. Any mistakes they make can poorly affect employees' lives and the organization's reputation.