Why Open Enrollment is Important

During an employer’s annual open enrollment (OE) period, employees can change their current healthcare plan and deductible to accommodate changes in coverage needs that have occurred since the previous open enrollment period. Employees may also opt to choose new benefits plans. 

Whether renewing the same plan or choosing a new one, it is critical to carefully review all the available plan options and make informed decisions taking factors like cost, coverage, deductibles, out-of-pocket limits, and available provider networks into consideration. 

Reasons for open enrollment period 

There are several reasons why open enrollment periods exist, including: 

• Affords employees an opportunity to evaluate their healthcare needs: The open enrollment period lets individuals review their current healthcare coverage and determine if it still meets their needs for the upcoming year. 
• Permits changes to healthcare coverage: The open enrollment period allows employees to make changes to their healthcare coverage, such as enrolling in a new plan or changing their current plan. 
• Ensures compliance with federal and state regulations: Employers and insurance providers are required by law to provide an annual open enrollment period, and they must adhere to the guidelines set forth by federal and state regulations. Open enrollment guidelines for both federal and state regulations include the length of the open enrollment period, the types of plans available, and the eligibility requirements for enrollment. 
• Encourages competition among insurance providers: The open enrollment period gives employees the chance to compare different healthcare plans and providers and shop for the plan that best fits their needs. This competition among insurance providers ultimately leads to better healthcare options, including pricing. 

Overall, OE is an important opportunity for individuals to evaluate their healthcare needs, make informed decisions about their coverage, and ensure compliance with federal and state regulations.