Annual Renewal and Open Enrollment

Every employer health plan renews annually.

For many employers, that's January 1.

For others, it may be April, July, October, or another month.

Renewal isn't simply about accepting next year's rates.

It's your annual opportunity to determine whether your health plan still fits your employees, your budget, and your business goals.

Common Renewal Mistakes

Automatically Accepting the Renewal

One of the biggest mistakes employers make is simply renewing the same plan.

Healthcare changes every year.

Networks change.

Rates change.

New funding options become available.

Before renewing, compare:

• Traditional carrier plans
• Association Health Plans
• Union Health Plans
• Level-Funded plans
• Self-Funded plans

Your current carrier may still be the best choice—but you won't know unless you compare.

Forgetting to Collect New Waivers

Employees who continue to waive coverage should complete updated waiver forms during each Open Enrollment.

Current documentation helps protect both the employer and the employee.

Missing Dependent Changes

Each year employees:

• Get married
• Have children
• Get divorced
• Lose other coverage
• Have children age off the plan

Annual Open Enrollment is the ideal time to verify dependent eligibility and ensure employee records remain accurate.

Failing to Review Employer Contributions

Many employers continue using the same contribution strategy for years.

Annual renewal provides an excellent opportunity to determine whether employer contributions still support recruiting, retention, and budget goals.

Poor Employee Communication

Employees become frustrated when they discover changes after the plan begins.

Communicate changes involving:

• Provider networks
• Copays
• Deductibles
• Prescription formularies
• Payroll deductions

Well-informed employees make better enrollment decisions.

Annual Renewal Checklist

• Compare competing plans
• Review provider networks
• Review employer contributions
• Verify employee elections
• Collect updated waivers
• Update dependent information
• Communicate benefit changes before the renewal date

The Bottom Line

Annual Open Enrollment shouldn't be viewed as paperwork.

It is one of the best opportunities employers have each year to improve benefits, reduce healthcare costs, and ensure employees understand their healthcare options.