Open enrollment is a busy time for a business and their employees. As an employer, the value of a quality health insurance plan is returned to you with happier, more productive employees. Agri-Services Agency has put together a few tips to help make your open enrollment a successful one.
Tip #1: Communicate to your employees the value of the health insurance coverage.
When employees understand the value of your benefits plan retention is greatly increased. Consider providing the following documents to help communicate this value to your employees:
- A total compensation package statement that shows the employee the value of their health insurance as part of their total compensation.
- A well-organized benefits summary which focuses on key benefits that everyone wants to know about all in one place. Agri-Services Agency can help you obtain or create this benefit summary.
Tip #2: Keep employees informed of any plan changes.
Employees often stress over making the right health insurance decision. When faced with no life changes to consider, many simply automatically re-enroll in the same coverage without taking the time to review the plan offerings. So it’s important to communicate changes for the coming year to ensure employees have all the information to make the best decision. Examples of common plan changes include change in deductible, co-payment, provider network, out-of-pocket limit or employee premium contribution.
It’s also the right time to communicate any new employee benefits being offered, such as voluntary coverages like dental, life or critical illness coverage.
Communicating plan changes is especially important for employers also offering a tax favored spending/saving account. Changes in benefits or employee premium share can directly affect an employee’s decision to participate in the spending/saving account. Common spending/savings accounts include:
- Health savings accounts (HSAs)
- Health flexible spending accounts (FSAs)
- Health reimbursement accounts (HRAs)
The rules governing these accounts can be complicated. It is critical that your employees properly understand the rules as violations of their specific participation, contribution, and distribution requirements can lead to penalties. And don’t forget to include any tax favorable accounts on your compensation package statement, especially if your business contributes dollars to these accounts on your employees’ behalf.
Tip #3: For employers with more than 50 full time employees, offering coverage to employees’ dependents is required by law.
Be sure your plan document indicates that employees can elect to cover their dependents. Failure to provide dependent coverage may trigger a $3,000 penalty per full-time employee. The Affordable Care Act also requires that dependents must be allowed to stay on their parent’s plan until they reach 26 years of age, even if other coverage is available.
BIG TIP: Small employees that offer dependent coverage can be vital differentiator between you
and a competitor.
Tip #4: Listen and respond to your employees’ questions throughout the entire year.
Open lines of communication go beyond a successful enrollment period. Employees may have questions about the specific details of their health insurance plan. Agri-Services Agency is always here to help your employees. Our dedicated service agents are available 24/7 to answer questions and solve your employees’ concerns.
As your broker, Agri-Services Agency is proud to help you establish the best practices to make your next open enrollment simple and smooth. Helping you understand your group benefits, laws that govern those benefits and providing supporting communication to your employees is what we do best.
If you’d like to discuss how Agri-Services Agency can help you through open enrollment and beyond, call us today at 877-466-9089.