Open Enrollment Done Right: A Small Business Employer's Step-by-Step Guide

Open enrollment usually starts with a renewal letter from your carrier, a couple of months before your plan year ends. Rates have changed, there are plan options to compare, and you have a few weeks to choose one, explain it to your team, and get everyone signed up before the new plan year starts.

The dollars involved are significant. According to KFF’s 2025 Employer Health Benefits Survey, average annual premiums reached $9,325 for single coverage and $26,993 for family coverage, with family premiums up 6% from the year before.

The steps below are the same ones our benefits team at Quality Payroll & Benefits, Inc. (QPB) works through with clients every year, starting about 90 days before renewal.

Step 1: Start the Clock 90 Days Out

Your open enrollment timeline is set by your plan’s renewal date, whatever month that falls in. Start working on it about three months ahead.

Pull your renewal from the carrier as soon as it’s available. Then put these dates on the calendar:

• Your plan renewal date
• The enrollment window (two to three weeks works well for most teams)
• The election deadline
• The first payroll date when new deductions take effect

Working backward from those dates gives everyone breathing room. It also gives you time to ask questions before anything is final.

Step 2: Read the Renewal Before You Sign It

A renewal is an offer, and you have options. Before you accept it, compare it against last year's plan line by line.

Look at what changed:

• Premium increases for each coverage tier
• Deductibles, copays, and out-of-pocket maximums
• Changes to the provider network or prescription coverage

Then think about who works for you. A crew of younger workers with growing families uses coverage differently than a staff of long-tenured employees closer to Medicare age.

If you’re considering a high-deductible health plan paired with a health savings account (HSA), the 2027 numbers are already set. The IRS raised HSA contribution limits to $4,500 for self-only coverage and $9,000 for family coverage for calendar year 2027. The same guidance sets the minimum HDHP deductible at $1,750 for self-only coverage and $3,500 for family coverage.

Step 3: Get Your Required Notices Out on Time

Two required notices often go out with open enrollment materials:

• Summary of Benefits and Coverage (SBC). If your plan renews automatically, a new SBC generally must be provided at least 30 days before the new plan year begins. Plans that require a new application follow a different timing rule.
• Medicare Part D creditable coverage notice. If your plan includes prescription drug coverage, Medicare-eligible participants need to know whether that coverage is creditable. These notices are due before October 15 each year, and CMS provides model notice letters you can use.



Many employers include the Part D notice in their enrollment packet. Your carrier or benefits partner can tell you which other notices your plan requires.

Step 4: Talk to Your Team Where They Actually Are

Crews on job sites all day may never open an emailed benefits guide. Bring the information to them instead.

A few approaches that work well:

• A 15-minute meeting before a shift or during a lunch break
• A one-page plan comparison with plain-language examples
• Materials in Spanish or other languages your team speaks at home
• One named person employees can call or text with questions

Step 5: Make Enrolling Easy

Offer a mobile-friendly option for people who don’t sit at a computer, and keep paper forms available as a backup. Send a reminder halfway through the window and another a couple of days before the deadline.

Track who hasn’t responded yet. For employees who decline coverage, collect a signed waiver showing they were offered coverage and chose not to enroll.

Step 6: Lock In Elections and Line Up Payroll

Small errors are easy to miss at this stage. For example, an employee picks family coverage, the carrier shows single coverage, and payroll still deducts the old amount.

Before the new plan year starts:

• Match every election against what the carrier has on file
• Update payroll deductions to the new rates and tiers
• Review the first paycheck of the new plan year for accuracy
• Reconcile the first carrier bill against your enrollment list



Remind employees that elections generally last for the full plan year. Life still happens, though. Under HIPAA, employees must request special enrollment within 30 days of events like marriage, birth, or adoption. Make sure your team knows to tell you right away when one of those qualifying life events comes up.

Step 7: Take Notes for Next Year

After enrollment closes, write down what worked and what didn’t, including the questions employees asked most and where they got stuck.

These notes make next year’s enrollment easier. They can also show you which benefits your employees value most, which helps when you plan your benefits budget.

You Don't Have to Run Open Enrollment Alone

Plenty of small business owners handle open enrollment themselves while running everything else. It can be done, but it takes time away from the work that keeps your business going.

At Quality Payroll & Benefits, open enrollment management is part of what our dedicated benefits specialists do every year. We help:

• Review renewals
• Prepare employee education
• Track eligibility
• Reconcile carrier billing

Because payroll, HR, and benefits are all under one roof, the elections your employees make show up correctly in their paychecks.

We've been helping growing businesses through this process since 2003. If you'd like a steadier, simpler open enrollment this year, let's talk about what your team needs.