Critical Open Enrollment Mistakes Often Overlooked and How to Avoid Them
- Ahrise Consultant Team
- Sep 23
- 5 min read
Discover the most common open enrollment mistakes employers make and how to avoid them. Learn compliance tips, communication strategies, and HR best practices to streamline benefits enrollment and keep your business audit-ready.
Open Enrollment is one of the most important times of the year for both employers and employees. It’s when workers select or update their benefits, and when organizations must ensure compliance with federal, state, and local laws. Yet, despite its importance, open enrollment mistakes are common—and costly. Errors in communication, compliance, or plan reviews can result in dissatisfied employees, compliance penalties, and even lawsuits.
To help you avoid these pitfalls, here are the top mistakes employers make during open enrollment—and strategies to prevent them.
1. Poor Communication with Employees
Effective communication during open enrollment is crucial for both employee engagement and regulatory compliance. By proactively informing employees and providing accessible resources, employers can reduce errors, improve benefits participation, and foster trust in HR processes.
The Mistake: Employers fail to provide clear, timely, and accessible information about benefits options, deadlines, and plan changes.
Why It Matters: Without proper communication, employees may miss deadlines, choose the wrong plan, or misunderstand their benefits. This leads to frustration, decreased engagement, and potential compliance risks.
How to Avoid It:
Send multiple reminders through email, intranet, and team meetings.
Provide easy-to-read guides, FAQs, and webinars explaining benefits options.
Highlight any plan changes or new offerings.
2. Ignoring Compliance Requirements
Staying compliant during open enrollment protects your organization from penalties and legal risks. By auditing documents, distributing timely notices, and verifying compliance, employers can ensure their benefits programs are both lawful and effectively administered.
The Mistake: Failing to meet federal or state requirements for notices, documentation, or plan updates.
Why It Matters: Non-compliance can result in fines, audits, or legal action. Open enrollment is a key time to ensure your benefits programs align with laws such as ACA, ERISA, COBRA, and state-specific mandates.
How to Avoid It:
Audit all plan documents and notices for accuracy.
Ensure required communications are distributed on time.
Work with legal or benefits advisors to verify compliance.
3. Overlooking Employees on Leave or with Life Changes
Accounting for employees on leave and those experiencing life changes is essential for maintaining both compliance and employee satisfaction. By proactively notifying affected employees and facilitating necessary adjustments, employers can prevent gaps in coverage and ensure a smooth benefits process for all staff.
The Mistake: Employers often forget to include employees on FMLA, disability leave, parental leave, or other absences, as well as those who have had Qualified Life Events (QLEs).
Why It Matters: Employees on leave or those experiencing life changes may not have the same access to open enrollment materials, leading to missed updates or coverage gaps.
How to Avoid It:
Notify employees on leave about open enrollment deadlines and materials.
Provide instructions on making mid-year changes for QLEs.
Partner with your benefits administrator to track continuity.
4. Failing to Review Current Plans
One of the most common mistakes during open enrollment is failing to review your current health insurance plan. Many people assume their existing coverage will meet their needs for the upcoming year. However, healthcare needs can change significantly over time—most employees experience some shift in their health status each year. What worked last year may not be sufficient this year.
The Mistake: Assuming that existing plans will automatically continue to meet current and future needs.
Why It Matters: Health needs can evolve quickly, and last year’s coverage may no longer be the best fit. Without a review, employees may find themselves with plans that don’t fully support their current or upcoming healthcare requirements.
How to Avoid It:
Encourage employees to review their coverage annually.
Ask: “Has your health, medications, or planned medical procedures changed?”
Provide comparison tools to help employees evaluate their options.
Tip from Ahrise: Before making any decisions, take the time to assess your current plan. Consider questions like:
Have you had any new diagnoses or changes in your health?
Are there new medications or treatments you now require?
Do you anticipate higher medical expenses next year due to planned procedures?
By carefully reviewing your current plan, you can identify coverage gaps and make informed decisions about whether to stay with your existing plan or explore new options.
Ignoring the Fine Print
Another common mistake during open enrollment is overlooking the fine print of health insurance policies. Many people focus primarily on premium costs and miss the important details of their coverage, which can result in unexpected out-of-pocket expenses. Studies show that a large number of consumers encounter surprise medical bills simply because they didn’t fully understand their plan.
The Mistake: Paying attention only to premiums while ignoring deductibles, exclusions, and provider networks.
Why It Matters: Missing these details often leads to unforeseen costs and frustration when employees try to use their benefits.
How to Avoid It:
Educate employees on deductibles, copays, and coverage limits.
Use real-life claim examples to clarify the fine print.
Tip from Ahrise: When reviewing your options, carefully consider:
Your deductibles and copayments
Coverage limits and exclusions
Network restrictions and available providers
By understanding these key details, you can avoid unpleasant surprises and choose a plan that fits both your healthcare needs and your budget.
Not Planning for Future Needs
Open enrollment isn’t just about your current health—it’s also a key opportunity to plan for your future healthcare needs. Many people make the mistake of focusing only on immediate concerns, overlooking the changes that life may bring.
The Mistake: Employees and employers often concentrate solely on present needs, ignoring potential future changes such as marriage, parenthood, or retirement.
Why It Matters: Decisions made during open enrollment can have long-lasting impacts. Without considering the future, employees may find themselves underprepared when life circumstances change.
How to Avoid It:
Encourage employees to think about possible life events.
Include long-term healthcare considerations in benefits education.
Tip from Ahrise: When selecting a health insurance plan, keep these factors in mind:
Upcoming life events, like a planned pregnancy or a college graduation
Changes in employment that could affect coverage options
Long-term health conditions that may require ongoing care
By taking a proactive approach and thinking ahead, you can choose a plan that offers the right coverage for both your current needs and the changes life may bring.
Final Thoughts: Make Open Enrollment Work Smarter
Open Enrollment is more than an annual event—it’s a compliance checkpoint and an opportunity to improve employee satisfaction. Avoiding these common mistakes ensures your organization stays compliant, your employees stay informed, and your benefits program stays competitive.
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By being proactive and informed, employees can navigate open enrollment with confidence, ensuring they are prepared for whatever the future may hold.
Watch: Open Enrollment is Coming...Are you ready?| Ahrise Consultant Group
Disclaimer: This content is for informational purposes and does not replace legal guidance
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