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Open enrollment (OE) is more than a yearly task for HR teams. It’s a strategic opportunity to engage employees when they may benefit from a new or different plan decision and improve their appreciation of company-sponsored benefits. OE is one of the only times in the year when employees can enroll in or change their health insurance plans without restriction, and their decisions can have a lasting impact on their well-being, engagement, and satisfaction. However, many employees find OE confusing and overwhelming and may not choose the best plan for their needs. This can lead to lower engagement, higher turnover, and increased short- and long-term health risks.[1]

That's why HR teams need to plan and execute OE effectively, focusing on engaging employees with the right resources, clear communication, education, and support. In this blog, we will share some insights and best practices from two esteemed benefits experts: Brian Harty, Vice President of Total Rewards at Accolade, who brings extensive experience having managed benefits for a Fortune 500 company, and Mary Lasky, Director of Benefits at Accolade, offers a wealth of knowledge from her tenure overseeing benefits for mid-sized businesses. Together, they provide valuable perspectives on conducting a successful OE. Additionally, we will discuss how Accolade supports HR teams and employees through OE with personalized, proactive guidance from our Care Advocates, ensuring a smoother experience for everyone involved. Together, they provide valuable perspectives on conducting a successful OE.

How OE can make or break your employee's health and wallet

According to a survey by MetLife, 73% of employees say that having a wide array of benefits is important for increasing their loyalty to their employer. However, only 47% of employees say they have a good understanding of their benefits. This gap can lead to poor choices and missed opportunities during OE. For example, a study by Aflac found that 89% of employees simply choose the same benefits every year, and according to a poll from the Kaiser Family Foundation, 46% say it’s difficult for them to pay the out-of-pocket costs for medical care not covered by their insurance.

According to Lasky, “Open enrollment is the cornerstone of HR leadership, yet for many employees, it presents a complex and overwhelming challenge. This annual opportunity is crucial as it allows employees to tailor their healthcare and benefits to best fit their personal needs and circumstances. By making informed choices during this period, they can achieve significant financial savings." Harty adds, “When employees become overwhelmed, run out of time or simply decide to stay where they are in their current elections, they can miss and underappreciate offerings their employer has made available at relatively low cost compared to buying in the open market (e.g., new point solutions, life and disability insurance). Trying to purchase these coverages after OE may be unavailable without a qualifying event, more expensive, or have coverage limitations.” Understanding the importance of OE sets the stage for us to consider how businesses can maximize their investment in this period.

How to maximize your investment during OE

Given the high stakes, businesses must view OE as an investment in the well-being and productivity of employees, not an expense. To maximize this investment, companies need to focus on three key areas: setting smart and relevant OE goals, communicating them in a simple and engaging way, and providing tools and services that can facilitate education and support. By doing so, companies can enhance their OE experience and outcomes.

• Setting OE goals: OE should never be “checking the box” in execution. How will you measure OE success that aligns with company goals for engagement, cost, and health equity? What program redesign changes will drive desired outcomes (e.g., communications open rate, benefit fair attendance, high deductible health plan (HDHP) enrollment, new program enrollment, employee satisfaction score)?

• Communicating clearly and effectively: Communicate with employees early, often, and through multiple channels, using simple and tailored messages. Provide comprehensive resources — like an Accolade Care Advocate — to help employees understand their options and make informed decisions.

• Tools and services that can assist in educating and supporting employees: Leverage technology, such as online portals and mobile apps, to simplify and streamline the enrollment process. However, technology will not best address all circumstances and confident decision making – connecting with a human being completes the picture to provide personalized and proactive support to employees.

"Here at Accolade, we dedicated two years to developing an online portal that enables employees to calculate various cost scenarios, helping them model medical plan options for the upcoming year during Open Enrollment," Harty explains. "With accurate information and assumptions, employees can clearly see the potential cost differences between staying with their current plan versus switching to the HDHP option. In the first year, only 10% of employees used this tool, resulting in minimal plan migration. However, by the second year, we actively encouraged employees to consult with their Accolade Care Advocate during OE for any clarifications. This approach led to a significant increase in the tool's usage to over 50% and a 25% rise in HDHP adoption among lower-paid employees. The initial hesitation largely stemmed from discomfort with the tool and uncertainties about whether changing plans would necessitate changing doctors."

With these tools and services in place, what does a successful open enrollment look like? Let’s examine the indicators of success.

What does a successful OE look like?

A successful open enrollment period is marked by high employee engagement and satisfaction, and informed and confident decision-making. Employees should feel they have the information and support needed to choose the best plan for their health and financial situation. They should also understand how their benefits work and how to use them effectively throughout the year. For HR, success means fewer questions and issues post-enrollment, indicating that the process was smooth and efficient. It also means having a positive impact on employee health outcomes and healthcare costs, as well as employee retention and loyalty. Lasky shares, "One of the indicators of a successful OE for me is when employees express gratitude and appreciation for the benefits we offer and the support we provide. It shows that they value their benefits and feel empowered to make the best choices for themselves and their families. It also reflects the culture of care and compassion that we foster at Accolade, both internally and externally."

Our discussion on successful OE naturally leads us to examine how Accolade plays a pivotal role in this process, not just for other companies but also internally.

The role of Accolade in our own OE

At Accolade, we not only support other companies during OE but also use our own services for our employees who have questions about their own health and wellness benefits. In 2023, we saw 49% engagement with Accolade services during open enrollment among our employees.[2] Our Care Advocates play a crucial role in this process by educating employees on benefit offerings and changes, taking a significant burden off Accolade’s small but mighty HR team.

HR teams receive an influx of questions about what is changing during OE. Lean HR teams simply don’t have the bandwidth to answer all these questions. Accolade Care Advocates step in to fill this gap. They provide personalized support, helping employees understand their options and make informed decisions. This support continues beyond OE, ensuring employees are on the right path for their health needs.

Accolade's involvement doesn't end with open enrollment. Let's look at the broader benefits of proactive engagement with employees throughout their healthcare journey 

Benefits of proactive employee engagement

Proactive engagement with employees can lead to better health outcomes and lower healthcare costs. A benefit inquiry call or mobile chat can sometimes guide an employee to a better health path. For example, a Care Advocate can help an employee find a lower-cost prescription, schedule a preventive care visit, or enroll in a wellness program. By addressing questions and providing support, Care Advocates help employees make better health decisions, benefiting both the employees and the company.

According to Harty, “Many times, it’s difficult to build trust with a new service or someone who you don’t have a personal relationship with. Accolade Care Advocates are trained to build that trusted, lasting relationship during each encounter, recognizing that the friendly support during OE may be the catalyst to future outreach when an employee is facing decisions that could have a significant impact on their loved one’s health and wellbeing. Accolade Care Advocates provide them with the information about their employer’s programs as well as support when making difficult medical decisions.”

Effective OE and ongoing support can transform employee health outcomes and bolster corporate culture. Continuous engagement is crucial, and Accolade supports this endeavor year-round.

Open enrollment is just the beginning of your employees and their family's journey to better health and well-being. A solution like Accolade can help your employees maximize their benefits throughout the year with personalized support, guidance, and advocacy. Whether your employees need help finding a doctor, managing a chronic condition, or accessing mental health services, Accolade is here for you. Don't wait, get started today and see how Accolade can make a difference for you and your company.

Also, check out Accolade’s Open Enrollment Playbook, which includes strategies, pro tips, and best practices for streamlining the OE process and achieving better employee health outcomes.

Mary Lasky, MBA, Director of Benefits, Accolade Mary Lasky is a passionate advocate for health equity and an employee-centered leader known for infusing compassion into benefit programs. With a wealth of experience, she spearheads the development and execution of comprehensive benefits strategies at Accolade, designed to attract top talent while prioritizing the well-being of every employee.

In her role as director of benefits, Mary orchestrates diverse programs covering medical, dental, vision, retirement, mental health, financial well-being, and more, with a goal of fostering health equity. Her commitment to creating a sense of belonging through the programs offered, she earned recognition in 2022 as one of Ragan's Top Women in Wellness and HR Awards.

Brian Harty, Vice President, Total Rewards, Accolade   Brian Harty is a seasoned Human Resources leader with over 30 years of experience in HR and consulting for companies in various industries and sizes.  Prior to joining Accolade, Brian was most recently head of healthcare benefits for a large financial services company, leading plan design, strategy, member engagement, and communications (including open enrollment strategy).

Sources: [1] https://www.forbes.com/advisor/in/health-insurance/9-common-mistakes-to-avoid-while-purchasing-health-insurance/

[2] Accolade internal data