Open enrollment is a stressful period for both employers and employees. During this critical time, employees can sign up for a new health plan or adjust their current coverage. Generally, there are two types of open enrollments: active and passive. Understanding the differences between these options can help you choose the best approach for your organization.
In an active enrollment process, employees must take action to enroll in the following year’s benefits. This approach requires individuals to review their options, make selections, and confirm their choices. Active enrollment ensures that employees engage with their benefits and make informed decisions. However, it demands more time and effort from both employees and administrators to ensure a smooth and successful enrollment period. Despite all efforts, some employees may still forget to complete the necessary steps, leading to gaps in coverage.
Passive enrollment simplifies the process by automatically enrolling employees in the same benefits as the previous year unless they opt to make changes. This method reduces administrative tasks and saves time for employers. For employees, passive enrollment is less stressful and ensures continuous coverage without requiring them to re-evaluate their options every year.
Passive enrollment offers several benefits, including:
While passive enrollment is convenient, it can lead to issues such as:
Choosing between active and passive enrollment depends on your organization's needs and the preferences of your employees. Here are some factors to consider:
Both active and passive enrollment have their advantages and challenges. The key is to provide employees with the educational resources they need to make the best healthcare decisions for themselves and their families. Whether you choose active or passive enrollment, clear communication and support are essential to a successful enrollment period.
For more information on how to manage your open enrollment process effectively, contact TPG Payroll & HR Services. Call us at 909.466.7876 today or explore our Benefits Administration services to learn how we can help you provide a better benefits experience.
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