Why? Benefits Administration The date coverage starts depends on when you lose coverage and the date a plan is selected. Youcouldadd the examples above into your general 401K messaging and call it a day. "I'm sorry to hear you lost your job. An announcement is made via email to ensure employees are informed about open enrollment dates and benefits being offered. Open Enrollment Period: October 10, 2022 - October 31, 2022 This is the annual opportunity for you to make changes to your benefits and to add or drop eligible dependents from coverage. If you experience one of these life events, you'll want to get in touch with your FSA administrator within 30 days of the event to find out if you are eligible to make changes to your plan. Were hiringsee all of our open positions. Were one day away from open enrollment! Employees who experience qualifying life-changing events (such as getting married, divorced or legally separated, having or adopting a child, or moving to a new residence or work location that affects benefits eligibility) are eligible to enroll in or make changes to their benefits elections outside of the open enrollment period. Put together educational materials when employees get a raise, and remind them that nows a good time to up their contribution if they can. Cathy has been in the insurance industry for 28 years. The official dates are [DATE] to [DATE]. If appropriate coverage is offered to employees (regardless of whether they enroll) these employers will not be subject to the penalty. Tips for writing a professional excuse email. Please purchase a SHRM membership before saving bookmarks. Open Enrollment is your annual opportunity to review your benefit plan options and make . Please log in as a SHRM member. Welcome to Open Enrollment! Web spread the word about your company's open enrollment with these 30 short reminders. Think about it your employees are a unique set of people with their own needs, life circumstances and goals. The information below covers what open enrollment is and what you may do during this time. [Instructions or refer to additional resources]. The attachments can include: Getting essential information to employees is vital but shouldnt overwhelm the employee. Keep your health in check *All Shipping prices displayed are for the lower 48 states only. As a top 1% graduate of the 2011 UT Arlington class, Brian emphasizes excellence and ingenuity, leading FBS to the forefront of benefit education and enrollment. Track employee time and maximize payroll accuracy. Karen Frost, health strategy and solutions leader at Alight Solutions, a benefit administration company, offered these pointers to HR benefit managers for open enrollment and throughout the year: Employers Enhance Emotional and Mental Health Benefits for 2020, Bretton Chatham But why stop there? FBS Blog Whatever the case, if you made a mistake during open enrollment, you're probably wondering if there's a way to make changes to your elections later on in the year. It can be beneficial to ask your employees if they like the way information is being provided to them, if they would prefer information to be distributed in different ways, or if they have any questions that have yet to be answered. Common qualifying life events include: Changes in marital status . I know how much you loved working there.". Heres what you need to do to get started now! $(document).ready(function () { Well, in an ideal world, youd be able to pair up every one of your employees with a savvy and charming financial guru who could look at their unique financial situation, and give tailored recommendations on how they should be spending their free dollarsi.e. For an employee, missing this vital deadline can mean losing coverage, or being unable to change benefits elections, which can have a significant financial impact on the employee. [Insert link to benefits portal and instructions]. He just cant beat a 100% return on his money. Short-term insurance is a plan that provides health insurance for 30-364 days (depending on your state) to act as a stopgap when there is a lapse in longer health coverage. If the open enrollment dates are Nov. 15 through Dec. 15, consider giving your employees a deadline of Dec. 5, suggests Starr Harry, client success manager at G&A. The information must get to vendors to ensure employees elections are accessible on day one of your companys benefits plan year. $('.container-footer').first().hide(); You will not be subject to this penalty if you have offered appropriate coverage to employees, regardless of whether they enrolled in coverage. Open enrollment is an annual window when you can enroll in health coverage, switch to a different plan, or drop your coverage (that last point is only applicable if you have an employer-sponsored plan; self-purchased individual/family plans can be dropped at any time). And to make matters worse, employees are skittish about their retirement savings right now thanks to COVID. Like Every Letter, You Need To Start By Addressing Your Staff. It's possible the employee had actually selected benefits but failed to confirm their election for some reason. pliance is currently $0. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Changes made at open enrollment are effective January 1, 2023. If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. The point of offering healthcare employee benefits for employees is to ensure that they are properly cared for. He is a graduate of Texas Tech University holds many different licenses in the insurance industry including the Insurance Counselors License through the Texas Department of Insurance. Mistakes happen -- and it happens more than it probably should when people are choosing health insurance. money left over after basic living expenses are covered. Open enrollment begins [DATE] and closes [DATE]. All rights reserved. This is the time for you to [Instructions], Were excited to bring you [Detail plan options and info]. Close the email out by reminding employees of the importance of benefits enrollment. The UCPath communications sent to employees are attached for your reference. After open enrollment ends, you can only make changes to your elections if you've experienced a qualifying life event. The IRS states that a qualifying event must have an impact on your insurance needs or change what health insurance plans that you qualify for. The call-to-action lets them know the open enrollment date, where they can find information, and when enrollment packets will become available. SHRM Online, September 2019, 10 Questions for Employees Choosing a Health Plan, Your employer is not legally obligated to allow you to make changes to your elections after the open enrollment period has ended. You can purchase coverage through the marketplace, but you wouldn't be eligible for any subsidy or anything (sounds like you make too much to qualify anyway). As an Account Executive, she was a key team member on the TRS-ActiveCare account from its inception through the duration of the contract. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. He writes about HR, compliance, and benefits solutions. (A version of this article appeared in Plan Sponsor magazine in February 2018.). Enrollment ends Jan 15th in most states. However, this may not be practical, especially for employees with growing families. About Us Business Associate Agreement ACA Compliance, Medical Consulting Hire, onboard, manage, and develop productive employees. Demonstrating to your employees that their needs are important to you will instill high employee morale, and ensuring that you have done all that you were required to do in regards to ACA regulations will protect your business in the event that an employee misses the open enrollment deadline. If you don't have time to send a formal letter, consider sending an excuse email instead. (Feel free to copy-pastewe won't tell.) For Workers and Families For Employers and Advisers If you've lost your job, had your hours reduced, or experienced other qualifying events there are options available to workers and their families to maintain health coverage, including the Consolidated Omnibus Budget Reconciliation Act, or COBRA. Home We are available 24 hours a day / 7 days a week. Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. Heres what you need to do to get and early start: [Instructions]. Get benefits strategy and communication tips that will make you even better at your job. The open enrollment announcement email should go out two weeks before your benefits packages are made available to employees. Deadline to enroll for insurance to start Jan 1 is Dec 15. He would lose more money than hed gain if still carrying that debt. Its recommended the announcement email should go out two weeks before benefits packages are made available to all employees. Although many of these suggestions are not legal requirements, it is in your best interest to take these steps in order to protect your business and its productivity. Despite your own best efforts to communicate important information and deadlines, you may have employees who dont successfully enroll on time. (Feel free to copy-pastewe wont tell. HR teams in larger companies may even conduct special meetings or hold benefits fairs, all designed to help employees understand their benefits options so they can make informed decisions. Here's what to expect: Emails are essential for company-wide communication because every employee gets assigned a company email when hired. Make Sure You're Getting the Best Deal, Jaleigh White, a member of the AICPA Financial Literacy Commission, noted that "even though the volume of an open-enrollment benefits package can seem overwhelming, employees would benefit from taking 30 minutes, at least, to read through all materials and explore the impact of any changes the company is making to their benefits, and carefully consider any changes to their personal situation that could impact their elections for the coming year.". Sample 401K Communication to Employees. The dates give your human resources department time to process and review employee elections and send them to the benefits providers. Reach out to our team any time to chat! 1.) Provide contact information to let employees know how they can access Q & As, learn more about their benefits, and how to contact the human resources benefits specialist. Share links to reputable personal finance blogs and podcasts. Between having multiple options, confusing plan descriptions, debating voluntary benefits and tight open enrollment deadlines, it's pretty easy to see how things might get confused. Make Time for Employees Who Missed Open Enrollment. By requiring employees to sign either an acknowledgement of benefits form for those who opt in to coverage, or a waiver of coverage form for those who opt out or miss the deadline to enroll in employer-based benefits packages, you will create a uniform policy. To learn more, schedule a consultation with one of our knowledgeable business advisors. Get the cold and allergy relief you deserve. Regardless of the reason, this common situation can result in added financial burden on the employee, additional missed days at work due to lack of proper health coverage, and frustration for both employee and employer. Russ holds a Life, Accident & Health insurance license and a Risk Managers license through the Texas Department of Insurance, and brings to FBS over thirty years of risk management and pool administration expertise. In order to prevent these issues, it is important to understand what it means when an employee misses open enrollment and how it can affect your businessbefore it actually happens. Are there any changes in my life that might make another health insurance choice more valuable this year? Surveying your employees will help you clarify benefits options and the open enrollment process, demonstrate your willingness to set aside time to help answer their questions, and potentially reduce the number of employees that miss open enrollment. You can stay informed, educated, and up-to-date with open enrollment, benefits administration, and other important topics using BerniePortals comprehensive resources: Crafting and following a comprehensive onboarding checklist ensures a consistent, As the cost of living continues to rise around the country, many employeesespecially HR professionals play an indispensable role within an organization. Mr. James started his insurance career in 1993 with American Fidelity in Lubbock, Texas and remained with them until 2000. Sample 3: Letter of permission for missing work due to an important matter. Missing open enrollment can be a costly mistake for employees, so employers should take adequate steps to help their employees through the enrollment process. If a company operates based on the fiscal year, the ideal open enrollment time frame would be in October. Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each year. Log-in Now! Starting the conversation about open enrollment early and providing multiple information channels throughout the open enrollment period can help ensure that employees haven't missed open enrollment at work. If you miss the open enrollment period, you won't be able to enroll in a plan unless you have a qualifying event (such as getting married, having a baby or losing employer-sponsored coverage). As HR representatives address open. Center for Advocacy, Resources & Education (CARE), 2022 Salary Program for Non-Represented Staff, Resources for Trans and Non-Binary Employees. There are simple steps employers can take to ensure a successful open enrollment period. } All rights reserved. If an employee misses . Remember, this is a guide to get you thinking about your message to employees. Pointers to pass along as open enrollment gets underway. Now What? This can happen for a variety of reasons, including a change in family status, work or information overload, or challenges in navigating the benefits enrollment process. In some circumstances, employees may be granted a special exception that allows them to retroactively register for benefits outside the standard enrollment window when they missed health insurance enrollment. Partnering with a respected third-party administrator is a great way to help educate your employees on their benefits and help make sure they get the most out of the open enrollment experience. Standalone Consulting Agreement Why? If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. When employees miss open enrollment and lose health coverage, this can add financial and emotional burdens that may affect their health, well-being, and productivity at work. If you are looking to outsource Paychex can help you manage HR, payroll, benefits, and more from our industry leading all-in-one solution. What Happens If an Employee Misses Open Enrollment? How to Draft a Open Enrollment Email to Employees (With Template). Thank them in advance for doing their part to make this a successful open enrollment. If youre offering new plans, however, passive enrollment isnt an option, so allow additional time and resources to communicate and follow up with employees. If Dave finds himself suddenly having to pay for something unexpected (like a broken transmission or a flooded basement) and doesnt have cash saved up, his options for paying off this bill are to a) raid his existing 401K funds and pay a penalty, (b) take out a loan against his account, reducing his after-tax pay by paying back principle and interest, or (c) use a high-interest credit card. The UCPath Center mailed an Open Enrollment notice and Open Enrollment Form to employees who were on an unpaid leave of absence as of September 30, 2021. It starts valuable dialog on whats being offered and how to take advantage of it. Still, missing open enrollment can make a bad situation worse. Learn more, Money Girls Quick and Dirty Tips for a Richer Life. Many employers even offer benefits education during open enrollment to help employees understand their options and make informed decisions. If youre truly invested in helping your employees not only plan for retirement, but also create savings and dig out of debt, offer education in the moments that matter: Reiterate your 401K messaging whenever employees get a raise, bonus, or promotion. ensure a successful open enrollment period. As an employer, you may be faced with administrative burdens and unhappy or unproductive employees. Remind employees they will receive a confirmation of their changes. Turning 26 and being dropped from a parent's coverage, Change in number of eligible family members due to birth, death, adoption, or other family status change, Change in work hours or job position that could affect insurance eligibility. This can cause important ones like open enrollment to fall through the cracks or simply be skimmed so they can move on to the next thing. Copyright 2023 The Regents of the University of California. Asking for employee feedback: Employees can be a great resource for offering suggestions about the best ways to structure benefits enrollment to ensure maximum participation. There are benefit fairs, promotional material, and banners on the company website. Depending on your circumstances, your opportunities to enroll after the end of the annual open enrollment period may be limited. Changes in number of dependents - if you have a child, adopt a child, or if a child passes away. We are looking forward to a successful enrollment season. Hopefully, we'll be able to restore your employment after this critical time. Picking an annual theme will keep your communications fresh and help unify all of your messages under one umbrella. Other qualifying life events that would make an employee eligible for SEP can include: If an employee experiences a decrease in income, they may be eligible to apply for health coverage through the government's Medicaid and Children's Health Insurance Program (CHIP). Thank you for visiting theFSAstore.com Learning Center. If you have questions please send to [email] or attend the upcoming Q&A [Date, time location]. All of these options would result in him losing money beyond the cost of the surprise expense. Here are some points you can (and should) include: Be Concise, and Swift. The portal can also include a count-down counter to encourage employees to enroll. $("span.current-site").html("SHRM MENA "); The good news is that were here for you every step of the way! Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. These include: Since there is little wiggle room with open enrollment deadlines, employers should focus on preventing employees from missing the annual deadline. In this article, we will focus on the importance of sending an open enrollment email to employees. He currently serves as the benefit consultant for several of the FBS Benefit Co-Operatives and many standalone school districts. Missing open enrollment can be a costly mistake for employees, so employers should take adequate steps to help their employees through the enrollment process. You want to provide employees with essential information about the upcoming benefits period that is engaging. When employees miss open enrollment and lose health coverage, this can add financial and emotional burdens that may affect their health, well-being, and productivity at work. Bonus tip: Dont just send all these links in a one-time email. She and her team will provide the district with monthly billing services. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). Here's what to tell them. In fact, the terms of your benefits plans may prohibit you from making exceptions for employees who do not make benefits elections within a certain time periodsuch as before the new plan year begins. We endeavor to answer all inquiries within 24 hours on business days. Bookmark () Riia O'Donnell on Nov 27, 2018 But if not enough people participate in the program, the company may also not see the benefits. You want to give your employer time to reassign any of your tasks. Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). We've got great ideas for top health purchases before the Grace Period deadline. } Richardson, TX. If an employee misses open enrollment, he or she may understandably be panicked and unhappy. Written by Changes in marital status - Getting married, divorced, separated, or if your spouse passes away. HR managers should be prepared to address the common employee question "What is a special enrollment period?" How the human resources department handles the lead-up to your companys open enrollment will define its success. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. Everything You Need Is Inside! Category. See attached flyer. What Is a Dependent Care FSA and How Does It Work? Here's our employee furlough letter sample: Dear [ employee_name ], I'm sorry to inform you that your position will be put temporarily on furlough due to urgent business conditions, from [ date] to [ date ]. Mr. James holds many different licenses in the insurance industry including the Insurance Counselors License through the Texas Department of Insurance. Why Send an Open Enrollment Email to Employees? This site is protected by reCAPTCHA and Google, Minimum of 1 special character ($%/()[]{}=? Theres no better time to talk about what to do with your free dollars than when an employee has just landed more free dollars, courtesy of payroll. Please confirm that you want to proceed with deleting bookmark. They must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. Managing Organizational Communication]. These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. var currentUrl = window.location.href.toLowerCase(); Need help with a specific HR issue like coronavirus or FLSA? This is nothing new. 75082. To get the ball rolling, a robust open enrollment email to employees is vital. A special enrollment period is a designated time outside of the standard open enrollment period for employees to change or update their insurance plan elections that are granted when the employee experiences a qualifying life event. So, for Joan, it makes sense to fund her 401K up to the company match and beyond, as much as she can afford. Are there changes I can make to my budget that would allow me to increase tax-deferred savings through a flexible spending account or a health savings account. And How it Works, Include employees in the benefits planning process, Ensure dates and deadlines are clearly communicated, Point out any tax or investment advantages, Provide helpful resources that are easy to digest, Format emails to be colorful and easy to read, Ask for their participation with a call to action, Provide all the contact information theyll need, Plug one last reminder about taking advantage of open enrollment. What is Evidence of Insurability (EOI)? This years enrollment period runs from [enrollment period dates]. Coop Consulting Agreement Contractually, employers may not be able to accommodate employees who miss open enrollment, unless they qualify for a special enrollment period. SHRM Online, September 2016. Howevereven when it's for their benefit(s)your priorities are not always their priorities, and some workers may put it off, thinking they'll have more time to ask questions and get clarification later. Not great for Dave! Here are the key components of the email. If your HR team is already overloaded during open enrollment season, trusted HR consulting services can help lighten the load and generate ideas for the best ways to support your employees through open enrollment. As the Director of Client Services at FBS, Cathy oversees the Billing, Clent Service, and Account Executive teams and is available to assist in escalated matters, if necessary. Provide information in a wide variety of ways including: Ask your employees if they like the way information is being provided, if they would prefer information be distributed in different ways, or if they have questions that have yet to be answered. $("span.current-site").html("SHRM China "); Whenever someone loses their job, they want to hear that their loss is validated. Open Enrollment begins on Tuesday, October 15, 2019 and runs through 5 pm, Thursday, October 31, 2019You may enroll online through Employee Self. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. In reviewing the following information, you are taking the first step toward securing your. Insurance and benefits plans can be cost prohibitive for companies that run smaller operations and/or do not have a large workforce. For Dave, it would make more sense to set money aside for that before he puts money into his 401K, even if his company offers a match. At this point, there is not much more that you can do for him or her unless he or she qualifies for an SEP. Please submit the email address associated with your account to reset your password. Get ready to discuss all things benefits! And if you have any questions or are uncertain about anything in the process, contact your HR department - they'll help you navigate the open enrollment steps and clarify anything you don't understand. The most beneficial ways in which you can help the employee is by offering additional opportunities for education and by asking for feedback regarding the process so that you can work to prevent this from happening again in the future. When open enrollment ends, we know you'll receive an influx of employee questions about their options to sign up for healthcare. In order to ensure that none of our employees in this status were missed by the cutoff date,HR Leave Administration will email an Open Enrollment reminder this week to allemployees currently on a leave of absence regardless of pay status.