Open enrollment is the one time each year when employees can make crucial decisions about their healthcare, finances, and overall well-being when it comes to their employer-offered benefit selections.
For business owners, especially those partnering with a PEO like BBSI, it’s also an opportunity to streamline operations, boost employee satisfaction, and stay compliant with shifting regulations.
So, what should you expect this year? In this guide, we’ll cover:
Let’s start with the federal-level updates that could make or break your open enrollment 2026 strategy.
A few key regulatory changes are shaking things up for open enrollment this year. Some will simplify your admin work. Others could trip you up if you’re not paying attention.
Starting with this cycle, you no longer need to automatically mail 1095-B and 1095-C forms to employees. You just have to post a compliant notice on your website and provide them if requested pursuant to IRS requirements. You’re also free to send them electronically as long as you’ve got consent. That’s less paper, less postage, and fewer headaches.
Also helpful: The IRS extended the response window for ACA penalty notices (Letter 226-J) from 30 to 90 days. That’s more time to get your ducks in a row.
The IRS raised the contribution limits again:
Also of note, the FSA Carryover Provision states that employees enrolled in a Health Care FSA in 2025 can carry over up to $670 into 2026 (up from $660 last year), provided they re-enroll.
If your employees like tax savings (and they do), remind them to max out those contributions this year.
The temporary COVID rule that let high-deductible health plans cover telehealth before the deductible? Expired. Unless Congress brings it back, telehealth now counts toward the deductible like everything else. This could confuse employees, so call it out during open enrollment.
If your plan makes it harder to access mental health services than medical ones (like stricter pre-approvals) it could be out of compliance. New rules require documentation and proof that restrictions are balanced. Make sure your carrier’s doing the legwork, or ask your BBSI representative to check.
The ACA’s “affordable coverage” test now allows employees to spend up to 9.02% of income on premiums. That threshold may rise again for 2026. Also, the max annual out-of-pocket limit could hit $10,600 (individual) / $21,200 (family) — up about 15%.
While these open enrollment 2026 changes will affect business owners across the country, there are also some major state-level changes we think you should be aware of.
Federal rules get the headlines, but state laws are where things get personal. If you’ve got employees in California, New York, or a handful of others, you’ve got some open enrollment 2026 updates to factor in.
Starting January 1, 2026, most group plans in California must cover infertility diagnosis and treatment, including IVF. Thanks to SB 729, this is a major upgrade in reproductive benefits. If you’ve got a team in the Golden State, expect premiums to reflect the change, and make sure your people know what’s newly available.
New York now requires up to 20 hours of paid prenatal leave each year for pregnant employees. It’s in addition to existing sick leave, so be sure to work it into your leave policies and open enrollment communications.
Each state plays by its own rules. Luckily, the basics still haven’t changed, and that’s exactly where we’re heading next.
The rules may evolve, but the fundamentals of open enrollment 2026 are still the same. Skipping them is where most businesses get tripped up, so here’s your annual reminder of what still matters (a lot).
Open enrollment is a limited window in the fall for making benefit elections.
This year, the period generally…
Miss this deadline, and you’re stuck until next year unless you qualify for a special enrollment event.
The best plan in the world means nothing if no one understands it. Don’t rely on a single email blast. Use:
Explain why plans changed, not just what changed. Break down terms and give examples, and aim to highlight the bright side of any plan change. When in doubt, over-communicate.
If your offerings are the same as they were in 2020, you’re probably out of step with what today’s workforce wants. Take this chance to:
Getting the best combination of benefits and premiums doesn’t need to feel overwhelming, especially when you have BBSI in your corner.
FSAs still operate on the use-it-or-lose-it model (unless you’ve added a rollover). HSAs still roll over every year, but employees forget this stuff. Remind them before they make the wrong election.
A little clarity now prevents a lot of confusion later. The good news is this gets a lot easier when you bring BBSI into the mix.
If you’re already working with a PEO like BBSI, open enrollment shouldn’t feel like a solo act. In fact, this is prime time to lean on the resources you might be underusing.
BBSI provides you with an HR platform and benefits portal, so make sure you’re actually using it. These tools cut down on paperwork and confusion by letting employees compare plans, view costs, and enroll online. If you're unsure how to customize anything, ask your BBSI rep. That’s what we’re here for.
BBSI stays on top of the same ACA, state law, and IRS changes you just read about. They can help you confirm if your plans are in line — whether it’s IVF in California or mental health parity.
Don’t carry the burden alone. BBSI can help create communications, host benefit Q&As, or even run open enrollment meetings for your team.
If you’re doing all the heavy lifting yourself, you’re not taking full advantage of your BBSI benefits. With Open Enrollment 2026 on deck, now’s the time to change that.
Open Enrollment 2026 brings a mix of updates and familiar requirements that business owners need to get right. From ACA reporting changes to new state laws and platform tools you may not be using yet, it’s all about preparation and execution.
As a BBSI client, you’re not in this alone. Take full advantage of our benefits administration tools, compliance expertise, and personalized support.
Have questions? Reach out to your local BBSI representative. We’re here to make this year’s open enrollment your smoothest yet.