Open enrollment season is a short time each year when employees can change their benefits package selections. Open enrollment for many benefits occurs in the fall; for example, enrollment time for those who buy health insurance on the Affordable Care Act marketplace for 2025 begins Nov. 1, 2024. Enrollment in Medicare Advantage plans takes place at the beginning of each year. Companies will set their own open enrollment dates for 2025 benefits.
Because open enrollment only occurs annually, employees must carefully choose a package that meets their needs. If employees fail to participate fully, they may pay more for benefits that don't suit them. Participation in open enrollment also helps employees plan their budgets for the next year because they'll understand costs well.
Several vital trends affect employee decisions during open enrollment. One of these trends is the high cost of traditional health insurance and the accompanying desire of both employers and employees to act to reduce premiums.
Another is a workforce becoming increasingly diverse in gender, ethnicity, and age. Employees in different demographic groups often have different benefit needs. Likewise, [remote employees](https://employers.workingadvantage.com/blog-content?item_id=abf44067-4940-403c-8d64-04a1957f30c6) may have different needs than those who work in person. Expanding high-value benefits and increased customization will help meet these diverse needs. Finally, employees are [increasingly valuing](https://www.bamboohr.com/blog/open-enrollment) nontraditional benefits, such as flextime, mental health benefits, and wellness stipends.
Companies must actively communicate deadlines and benefits offerings through various channels so that employees can make informed decisions. Communication should begin well in advance. Companies should help employees develop multiple scenarios around the benefit options. Employees are also responsible for educating themselves about the changes in benefits each year, reviewing the options, and discussing them with their families or significant others.
## Current Market Trends
Several factors affect the evolution of benefit offerings in 2024 and 2025. The ACA penalizes companies that fail to provide affordable healthcare coverage to eligible employees. Each year, the affordability threshold changes. For 2024, the employer's required contribution for health insurance could not exceed 8.39 percent of household income.
Another trend is the prevalence of telemedicine and virtual doctor visits and employees' desire to include these options. In 2024, [more than 116 million](https://www.statista.com/topics/12106/telemedicine/#topicOverview) used online doctor consults. A third trend is the shift toward more personalized benefits packages that allow employees to [choos](https://employers.workingadvantage.com/blog-content?item_id=9e6df1d5-f1f5-4095-b8c9-9fb9c18fa4db)e the benefits they value. Employees who can customize their benefits are more engaged, which leads to greater creativity and productivity. They also tend to be more loyal.
Many employees prefer to register for their benefits online; digital tools can make the process flow smoothly. Artificial intelligence (AI) and predictive modeling can help employees develop scenarios and make more informed benefit decisions.
## Strategic Enrollment Tips
Here are some tips for managing open enrollment strategically.
### Maximize Employee Benefits
Companies can help employees maximize their benefits in several ways. The first is by offering broader benefits beyond traditional health insurance and retirement accounts. Examples include health spending accounts, educational assistance, mental health benefits, flex benefits, and access to [corporate discount programs](https://employers.workingadvantage.com/blog-content?item_id=acddbe8d-2ebc-4f0c-9203-eb2867df03e5).
Another way employers can help is by providing tips on how employees can make the best choices from among an array of benefits. For example, they can provide detailed information on deductibles and copayments in medical plans. They can also use employee feedback to offer benefits that meet specific needs, such as education assistance, discount programs, and wellness benefits.
### Prioritize Frequent Communication
During open enrollment, frequent communication is key to ensuring employees understand their benefits options and make informed decisions. Employers can leverage platforms like Working Advantage to streamline this process by providing a central hub for information. By prioritizing frequent updates, reminders, and offering easy access to resources, employers can make the enrollment experience smoother and more engaging for employees. Clear, ongoing communication helps reduce confusion and enhances participation, leading to better overall benefits utilization.
### Navigate Medicare Advantage Plans Effectively
While employers can't encourage employees to choose Medicare Advantage and Secondary Payee Plans, many employees may choose them for themselves or family members. Helping employees understand how these plans work can be a valuable service.
### Leveraging Financial Services for a Comprehensive Benefits Strategy
Financial services are essential as a benefit and in helping employees to develop a benefits strategy that works for them. Employees are seeking employers who care about their well-being outside the office. Many workers feel financial stress, and that worry impacts their work. Offering financial services benefits can help employees manage their finances better. These benefits also demonstrate that [your company cares](https://employers.workingadvantage.com/blog-content?item_id=ecc502f1-dac4-40f8-950f-c25deda5fe88) about them and their families.
Companies can also help workers make the best benefit decisions each year by offering financial services that help them review all their benefit choices in light of their overall financial picture.
### Understanding the Role of Health Savings Accounts (HSA) in Enrollment
Health Saving Accounts (HSAs) can help employees manage rising healthcare costs while lowering their taxes. Employees who opt to save on premiums by choosing a high-deductible plan can set aside a portion of their income tax-free to pay bills that health insurance doesn't cover. Companies can help workers make good decisions on HSAs by offering financial planning services, scenarios, and other education.
Open enrollment season for 2024-2025 is fast approaching. Trends such as personalization and diversity are leading to more complex benefits choices. Companies can help employees make informed decisions by beginning to communicate about options early, providing materials in plain language with understandable scenarios, and offering financial services. Technology can improve the enrollment process.
One way to give employees access to personalized benefits is through corporate discount programs, especially those platforms that allow employees to buy voluntary benefits such as identity theft insurance. Working Advantage offers the world's most extensive corporate discount program. Join the more than 40,000 companies in offering this benefit to your employees. [Contact us](https://www.workingadvantage.com/employer) today.
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