As open enrollment approaches for 2026, business leaders are facing a period that often feels overwhelming. For many, it’s a stressful administrative burden. For employees, it’s a critical time to make choices that impact their health and finances for the entire year ahead. Between managing complex regulations, communicating changes to a diverse workforce, and ensuring your business stays compliant, the challenges can seem endless.
This year, the stakes are even higher. With updated IRS rules and healthcare changes on the horizon, it’s more important than ever to ensure your benefits strategy is compliant and effective.
At LBMC Employment Partners, our dedicated team is here to offer guidance for both employers and employees throughout this crucial period. LBMC EP’s personalized PEO solutions are designed to fit your unique business needs, ensuring a smooth open enrollment and freeing your team from the administrative workload. Our goal is to streamline the process for you and ensure your team has the information they need to make smart, confident decisions for the year ahead.
Open Enrollment Best Practices: What Employers Should Know for 2026
Here are seven tips and a few key updates for next year’s benefits to help your company prepare:
1. Communicate with Your Employees (Early and Often)
The enrollment process is more than a task on your list; it’s a vital decision for your employees and their families. To give them enough time to consider their options, start communicating the details of open enrollment early and often.
A common misconception is that if an employee is already enrolled in a plan, their coverage will automatically roll over. This is not always the case. Employees must still re-enroll in a plan, even if they want to keep their existing coverage. Encourage them to review their elections and medical expenses from 2025 to see if their current plan is still the best fit. Remind them that their insurance needs may have changed since last year, especially if they have gotten married, had a child, or changed their residence. The open enrollment period is also a great time to share new updates on regulations and contribution limits for FSA/HSA accounts in 2026.
2. Encourage Questions and Provide Education
Open enrollment is the only time of year when employees can make changes to their benefit elections, unless there is a qualifying event (like marriage, divorce, or the birth of a child). These elections are for the entirety of next year’s benefits, so it’s critical they get it right. It’s also a time when many employees take some time to review their retirement planning or 401(k) contributions for the upcoming year. A designated point of contact to answer all questions can help your employees feel empowered and supported.
This time period provides a great opportunity to re-educate your team on how their benefit plans are designed. Don’t assume they understand key terms. Ask yourself:
- Do my employees know the difference between a copay and a deductible?
- Do they understand what the yearly maximum means on their dental insurance?
- Are they aware of our company’s 401(k) offerings (i.e., programs, match, etc.)?
Low enrollment and engagement often stem from a lack of understanding. Higher enrollment in your benefits can lead to increased employee satisfaction and better utilization of the plans you’ve invested in.
3. Discuss Making Intentional Choices
Employees often default to the same plan they had the previous year, but it’s important to remind all employees to make intentional choices. Create an engaging message that urges them to thoroughly review all their options.
This is also the perfect time for employees to review their beneficiaries and make any necessary changes to that paperwork. If an individual is electing new beneficiaries, they’ll need to have the Social Security numbers and date of birth of their new beneficiary.
4. Review Your Plan and Enrollment Materials
Before open enrollment begins, familiarize yourself with your plan documents and enrollment materials. Check for any information that you may need to update, such as eligibility requirements, benefits, vendors, dates, and contact details. To avoid potential roadblocks, verify the correct enrollment schedules and deadlines and ensure that you communicate those dates to your employees. At LBMC EP, our tailored PEO partnership provides the hands-on support you need, so you can stop worrying about open enrollment logistics and focus on your business and your team.
5. Pay Close Attention to New Laws and Requirements from 2025
The legal landscape for employee benefits is always shifting, and 2025 has been no exception. This year, it is vital to pay close attention to updates from the IRS. For example, the Affordable Care Act (ACA) affordability threshold has been adjusted, and there are new, higher contribution limits for Health Savings Accounts (HSAs) that you should communicate to your employees. Navigating these changes can be complicated, especially for companies with multi-state teams.
The good news is that you don’t have to do it alone. Your LBMC EP dedicated team member stays on top of these changes, knows exactly what is pertinent to your company, and is always ready to answer any questions you or your employees might have.
6. Review and Update SBC and SPD Materials
You are legally required to provide an accurate Summary of Benefits and Coverage (SBC) and Summary Plan Description (SPD) to employees. Review and update this documentation to verify its accuracy before disseminating it to your team. While your SBC document may encompass some SPD information, remember that you must still have separate documents on file. Carefully crafting these documents can help answer some of your team’s questions upfront, saving time and confusion.
7. Revisit and Refresh Your Employee Handbook
Open enrollment isn’t just about benefits; it’s an ideal time to ensure your entire employee handbook is up to date. Your employee handbook is your primary source of company policy, and it must reflect the current legal landscape to protect your business. Use this period to review and refresh your handbook, ensuring it includes all new policies and regulations that are currently in effect. It’s a proactive step that protects your business from compliance risks and provides your employees with the most accurate information. At LBMC EP, our team will even take on the complex details of updating your employee handbook during open enrollment, giving you more time to focus on what matters.
Let LBMC EP Be Your Partner This Open Enrollment
Open enrollment doesn’t have to be a burden. It can be a strategic opportunity to connect with your employees and build a stronger, more informed team.
At LBMC Employment Partners, we understand the complexities you face. We provide a dedicated support team to strategize, educate, and execute benefit packages. We are here to help you navigate the ever-changing landscape of benefits and compliance. From reviewing your plan documents to helping employees understand their benefits, we provide the high-touch support that helps both you and your employees directly.
Contact us today to learn how LBMC Employment Partners can guide you through the open enrollment process, streamlining your tasks and supporting your employees with confidence.
