Question: What happens if an employee misses open enrollment?
Answer: For an employee, missing this vital deadline can mean losing coverage or being unable to change benefits elections, which can have a significant financial impact on the employee. For employers, when employees miss this deadline, it can result in additional administrative burdens and unhappy or unproductive employees.
Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. In fact, the terms of most benefits plans prohibit employers from making exceptions for employees who do not elect benefits within a certain period, such as before the new plan year begins. Most of the time, employees are locked in for the entire plan year. The only exception to these terms is if an employee qualifies for a special enrollment period. 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.
Contact us for guidance on open enrollment requirements, special enrollment periods, and best practices for managing benefits compliance with confidence.
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