Happy new year, everyone! It’s bound to be a good one, especially with last year’s open enrollment hassles officially behind you, right?
Well, not quite.
Sure, you’ve gotten all of the necessary files over to your carrier right in time for your effective date. Your employees have their ID cards in hand and are ready to take advantage of their benefits. A sigh of relief is in order, but the process isn’t done just yet.
“Now is a really great opportunity to be reflective about what just happened and what could be done better for open enrollment next year, number one,” says Rob LaHayne, Director of Brokerage Services at Namely. “And then number two: Make sure you have all your ducks in a row for the upcoming year.”
Like setting thoughtful new year’s resolutions, now is a great time to look back on your processes around employee benefits and ask yourself a few questions if you haven’t done so already. Did you do a good job explaining benefits during open enrollment? How easy was actually enrolling for employees? What about your processes this year for new hire enrollment, life events, and COBRA administration?
But don’t stress. Let’s go through it all step-by-step so when mid-January rolls around, you won’t be caught off guard by any surprises. When it comes to employee benefits, make like a new year gym membership and start your org off on the right foot.
1. Set up a post-open enrollment meeting with your broker or your senior benefits consultant.
Kick the quarter off by getting together with your broker and chatting about what went well this past open enrollment (e.g. your easy-to-use open enrollment technology) and what could have gone better (not as many employees enrolled in your new high deductible plan as you would have liked).
Debrief on the new plans and benefits you offered. For example: What was employee engagement like with new plans vs. old ones? How well were the differences between them, and their use cases, communicated? Finally, do a cost analysis of benefits this year vs. last year ahead of your first bill.
Next, poll employees about how the open enrollment process went for them. Did they understand all of the options presented to them? Did they have enough time to enroll? “Start laying the groundwork for an effective employee engagement strategy around benefits for the new year,” says LaHayne. Half the employee benefits battle is communicating your offerings in an understandable, digestible way. See how well you did, and consider making plans this year to revamp your open enrollment guide for employees or offer more online resources.
2. Audit your first bill.
Once you have your first carrier bill, you’ll really have something to work with. “Take whatever post-enrollment data file you received from your benefits administration provider and make sure the carrier’s bill is accurate compared to what you submitted.” Take the time to go line item by line item and ensure everything is accounted for.
This is a great task for any HR professional overseeing benefits—and an appropriate one for looping in your broker as well.
3. Once the initial debriefing is done, set quarterly meetings with your broker.
“The goal is that you’re always working towards that next renewal,” LaHayne says. “The first quarterly meeting might just be discussing new ideas on wellness strategies or new regulatory information to be aware of. For subsequent quarterly meetings: Do a deeper dive on the claims experience once you've begun collecting data from your carrier.”
As for the third quarter, start laying out your open enrollment strategy from a product perspective: tweaks to your current planning and any new offerings. “Also, start thinking more and more about what your timeline is going to be for that year’s open enrollment,” LaHayne says. Of course, once Q4 is here, it’s off to the races.
4. Review your COBRA, new hire enrollment, and life event processes.
If you have just completed your first open enrollment with a new broker, it’s especially important to review your process for handling employees’ COBRA coverage for temporarily extending employee health care coverage, when a qualifying event comes along like a termination or change in employment status.
If you are unaware of your process, contact your broker to be sure you understand what needs to be communicated to your carrier, and when. The last thing you want is to be stuck with additional charges in a few months because COBRA is handled incorrectly.
LaHayne also points out the importance of having a solid checklist for new hire enrollment in place. Be sure employees get all of the information they need, preferably in similar detail and fashion to the open enrollment the whole company experiences.
Finally, be sure you have reminded employees how to communicate life events to HR . “Make sure your employees know what the reporting process is for when they get married or have a baby—who to contact and what to expect,” says LaHayne.
5. Remind employees about their new planning at an appropriate time.
Lastly, employees may not remember some of their benefits changes when the time comes for them to actually use them. One example as pointed out by Employee Benefit News are employees newly enrolled in high-deductible health plans. Send a reminder note during the first quarter that their point-of-service payments will be higher, but their payments will go towards the deductible and premiums will be lower. Additionally, as LaHayne points out, remind employees of their new benefits selections before the first pay cycle includes new payroll deductions. Then, you may avoid a flurry of emails wondering why pay amounts have changed.
“There’s so much work that goes into preparing for open enrollment and your communication strategy for employees,” LaHayne says. “Just don’t forget the important step of debriefing afterwards.” With a sound strategy in place and all your bases covered, you’ll be ready to ring in the new year without dropping the benefits ball.