In order to ensure that their businesses will not face any penalties, many ALEs should document that coverage has been offered. Posted on December 9, 2021 [Insert link to benefits portal and instructions]. In order to ensure that none of our employees in this status were missed by the cutoff date, HR Leave Administration . He currently serves as the benefit consultant for 15 of the 20 Educational Service Centers in the State of Texas. (Feel free to copy-pastewe wont tell. Changes in dependent status - children can age out of dependent status or become eligible for dependent status during the year. Contractually, employers may not be able to accommodate employees who miss open enrollment, unless they qualify for a special enrollment period. Make a corrective contribution to the plan for the employees that compensates for their missed deferral opportunity. Some states, however, do have penalties for individuals without minimum essential coverage. 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. 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. Please enable scripts and reload this page. Share links to reputable personal finance blogs and podcasts. Its their opportunity to enroll or make changes to their employee benefits. Stacia will assign and work with an FBS Billing Coordinator to work with the district on consolidated billing, discrepancies, and other billing matters. Get the cold and allergy relief you deserve. If you have not defined any specific goals, then start by focusing on the enrollment experience as a whole, for example what did your employees like and what do they want to be different for next year. } 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. If youre encouragingallyour employees to putas much as they caninto their 401(k), I hate to break it to you, but you may be causing more harm than good. Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. All rights reserved. Sample 401K Communication to Employees: A Template for HR Leaders How Can HR Help an Employee Who Misses Open Enrollment? Each year host a debriefing session to understand what worked and how to improve open enrollment the following year. 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. 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. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); When it comes to your open enrollment elections, the best thing you can do is take your time and be thorough to minimize the chance of making mistakes. If an employee missed open enrollment at work, they are generally no longer eligible to sign up for benefits unless one of a few special exceptions applies. , G&A Partners. The benefits open enrollment period is typically the only point during the year in which your employees can make changes to their benefit electionsincluding adding or dropping coverage or dependents, switching plans, or even enrolling in benefits for the first time. ", "Americans tend to miss the mark when they stick with what they were doing before without double-checking their assumptions," said Kelley Long, a member of the AICPA Consumer Financial Education Advocates panel. 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. Be sure to include these details in your letter. It often brings many questions and can be stressful on both sides of the communication flow. When open enrollment ends, we know you'll receive an influx of employee questions about their options to sign up for healthcare. Remember, this is a guide to get you thinking about your message to employees. For [current year], we are maintaining [describe plan types] and have made the following changes: [describe plan changes]. Were two weeks from open enrollment. Her short-term financial situation is secure, so shes in a position to focus on her long-term goals. Dave lives paycheck to paycheck and doesnt yet have an emergency fund. Its the start of Open Enrollment! Bretton Chatham Plans like, short-term coverage and critical illness allow year-round enrollment but are not regulated by the. COBRA Continuation Coverage | U.S. Department of Labor - DOL The IRS and FSA administrators understand that life changes and that you may need to make adjustments to your elections to accommodate for those changes. Emails are essential for company-wide communication because every employee gets assigned a company email when hired. If you are looking for help with your current system, or think it may be time to enhance your benefits package, contact us to talk to a consultant. Youcouldadd the examples above into your general 401K messaging and call it a day. Surveying your employees will help you clarify their benefits options and the open enrollment process, and it can demonstrate that you are willing to set aside time to help answer employee questionspotentially reducing the number of employees that miss open enrollment. } As you know, open enrollment is open now and closes [DATE]. Learn how ALEX makes benefits engagement a breeze for HR teams and consultants. To learn more, schedule a consultation with one of our knowledgeable business advisors. 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. You have successfully saved this page as a bookmark. For exactly that reason, its important to make sure you go beyond encouraging higher and higher 401(k) contributions (which only some employees can manage) and, instead meet your entire workforce where it iswith more empathetic, targeted, holistic financial guidance. Benefit Cooperatives 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. I apologize for the delay in sending last month's paychecks. HR reps, the AICPA advised, could share this message with employees: "By just staying the course without reviewing all the options available, you could be missing crucial opportunities to saveor worse, choose a plan that doesn't properly cover your family's health care needs. [Instructions or refer to additional resources]. Mistakes happen -- and it happens more than it probably should when people are choosing health insurance. To avoid these penalties, document that coverage has been offered by requiring employees to sign either: To help your employees make the most out of the open enrollment period and the benefits your company provides, consider implementing the following strategies: Offering benefits education to your employees prior to and during the open enrollment period can help minimize confusion and cut down on time spent addressing commonly asked questions. How to Draft a Open Enrollment Email to Employees (With Template). This is the time for you to [Instructions], Were excited to bring you [Detail plan options and info]. coverage qualify for a special enrollment period to enroll in a Marketplace plan outside of the annual open enrollment period and may select a plan within 60 days of losing job-based coverage (either 60 days before or 60 days after). Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. All rights reserved. The information must get to vendors to ensure employees elections are accessible on day one of your companys benefits plan year. Your teams should start strategizing well before the announcement for open enrollment. 2023 FSA Store Inc. All Rights Reserved. Stop the sniffles - Workest Your Employee Missed Open Enrollment for Health Insurance. 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. Now What? What Happens If an Employee Misses Open Enrollment? document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); Give us a ring, send an email, or fill out the form below. These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. Sushma Tripathi, vice president of strategic advisory services at ADP, an HR management software and services provider, offered the following starter questions HR can ask to engage employees during open enrollment. 2023 Open Enrollment Obamacare Health Plans Find 2023 health plans. You can also take an email communication and post it to the employee portal on your website. (800) 583-6908 Another way to increase engagement is to provide helpful resources and quick tips for employees to reference. Deadline to enroll for insurance to start Jan 1 is Dec 15. The open enrollment survey questions you ask largely will depend on the goals you are trying to measure. Here's what can happen and how HR can help. But it will show that you have their best interests in mindwhich, when it comes to creating change, is half the battle. 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. Standalone Consulting Agreement You heard it here first! But since he has high-interest credit card debt, Greg probably shouldnt contribute any more money to his 401Kbeyondthe match until his debt is repaid. If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. Flex-Ed: Mistakes During Open Enrollment Can You Change Elections? Pointers to pass along as open enrollment gets underway. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { You can buy your own insurance if you want. The call-to-action lets them know the open enrollment date, where they can find information, and when enrollment packets will become available. The ConnectorCare program in Massachusetts (for people who are newly eligible or who haven't enrolled before). If you missed open enrollment through your employer, you've probably already asked for their help but there may be nothing they can do. Earn FSA Perks Points, unlock member-only rewards, and speed up the checkout process. You will not be subject to this penalty if you have offered appropriate coverage to employees, regardless of whether they enrolled in coverage. 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. Utilizing as many forms of communication as possible will enable you to reach more employees. She encourages employees to ask themselves the following questions to be sure they are making the best choices for themselves and their families during the year ahead: "If you answered 'yes' or you're not sure about the answers to these questions now is the perfect time to revisit your benefits. But if youre looking to get started now, you can still significantly improve the usefulness of your 401K communications by highlighting a few different employee personas, and giving financial advice for each one. 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. He writes about HR, compliance, and benefits solutions. To get the ball rolling, a robust open enrollment email to employees is vital. In this second sample, look for employees who should have been excluded from participation. Now What? Most employees receive a flood of work-related emails every single day. Section 125 plans are used by most employers that offer health coverage, as they are the mechanism that allows . However, most have an actively at work or similar provision, and wording regarding the inability to make an election because of extentuating circumstances. Like Every Letter, You Need To Start By Addressing Your Staff. 2022 Open Enrollment communications to employees on leave of absence Enrollment ends Jan 15th in most states. Richardson, TX. If an employee misses open enrollment, he or she may understandably be panicked and unhappy. The UCPath communications sent to employees are attached for your reference. But why stop there? The open enrollment announcement email should go out two weeks before your benefits packages are made available to employees. 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. If you are asking for a longer leave of absence, send this letter as early as possible. Employees are befuddled by their health care coverage. The deadline to make any changes will be [DATE]. Welcome to Open Enrollment! 1 NOTICE TO ALL EMPLOYEES - 2020 ANNUAL OPEN ENROLLMENT PERIOD FOR OPTION CHANGES IN HEALTH AND DENTAL INSURANCE PLAN COVERAGE. The attachments can include: Getting essential information to employees is vital but shouldnt overwhelm the employee. Writing a good job rejection letter is not as hard as you think it is! What Happens if an Employee Misses Open Enrollment? - LHD Benefit Advisors Open enrollment is a predetermined time frame employers establish for making changes to health care plans and benefits. Short-term coverage is typically cheaper than traditional health plans, but only relatively healthy individuals will qualify. These include: Since there is little wiggle room with open enrollment deadlines, employers should focus on preventing employees from missing the annual deadline. Our benefits fair will take place [insert dates, time, locations]. a global pandemic that's been hard to predict, improve or enhance open enrollment communication. Effective communication to employees can sometimes be a moving target. Get benefits strategy and communication tips that will make you even better at your job. If an employee misses . Changes in employment - this can mean starting a new job, quitting, or a transition from part-time to full-time work status. Heres what you need to do to get started now! When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. 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. Log-in Now! Missing open enrollment can be a costly mistake for employees, so employers should take adequate steps to help their employees through the enrollment process. Category. Subject Line: Lets Talk Benefits! You want to give your employer time to reassign any of your tasks. At many organizations, the open enrollment season for 2020 employer-sponsored benefits is under way or about to begin. Business Associate Agreement Let's use a fall open enrollment as an example. 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. . By incorporating the mission of the university and the code of conduct, we believe strong communication will enhance understanding and foster positive work environments. Make it easy on you and your team by taking advantage of our action plan and timeline. After open enrollment ends, you can only make changes to your elections if you've experienced a qualifying life event. Relocation - Moving won't always affect your eligibility, but sometimes moving to a new home address or a new work site can, especially if it's in a new state with different regulations. We've got great ideas for top health purchases before the Grace Period deadline. 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. Why? }); if($('.container-footer').length > 1){ 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.". Please submit questions related to Open Enrollment for your employees on leave to Service Now > Leave Administration > Other Leave Questions. 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). ), Subject line: Lets get smarter about 401K savings. In fact, there's a good chance that the terms of your employer's benefit plan don't allow any exceptions or changes for employees who make mistakes or miss the open enrollment period altogether. Drafting an open enrollment email is not a daunting task. All of these options would result in him losing money beyond the cost of the surprise expense. Therefore, your open enrollment for the new year will take place in October. Missed Open Enrollment? Here's How HR Can Help | BerniePortal Most companies operate on a calendar fiscal year. Copyright 2023 The Regents of the University of California. Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each year. 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. Common qualifying life events include: Changes in marital status . What Is a Dependent Care FSA and How Does It Work? Employers can also gather status updates during the open enrollment period to view which employees have not completed enrollment. 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. pliance is currently $0. Hi team, Putting money away for your retirement is important, but how important depends on the financial . Provide instructions on how to log in. Please review the information . Following this time frame, your open enrollment email to employees would go out in mid-September. It starts valuable dialog on whats being offered and how to take advantage of it. HR managers should be prepared to address the common employee question "What is a special enrollment period?" 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. Here are the key components of the email. var currentUrl = window.location.href.toLowerCase(); Open enrollment begins one month from now, beginning [DATE] until [DATE]. Depending on who the healthcare plan provider is, there may be contractual agreements that do not allow for enrollment . Learn more, Money Girls Quick and Dirty Tips for a Richer Life. Web spread the word about your company's open enrollment with these 30 short reminders. If you have questions please send to [email] or attend the upcoming Q&A [Date, time location]. The email is simply an introduction. var temp_style = document.createElement('style'); document.write(new Date().getFullYear()); In this article, we will focus on the importance of sending an open enrollment email to employees. 5 post-open enrollment survey questions to ask your employees The Covered Connecticut program allows eligible applicants to enroll anytime. But if not enough people participate in the program, the company may also not see the benefits. If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. Please let us know if you have questions! Please purchase a SHRM membership before saving bookmarks. Remind employees they will receive a confirmation of their changes. 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. "I'm sorry to hear you lost your job. Health Insurance Renewal Sample Letter to Employees By Mary Gormandy White, M.A., SHRM-SCP, SPHR YinYang / iStock via Getty Images If it's time for your company's group health plan to renew, it's advisable to notify your employees about the new plan options in writing.