Simplify Open Enrollment 2024 With a PEO

Open enrollment 2024 is just around the corner. It’s a critical time for most small and medium-sized businesses. They’ll need to monitor changing regulations while optimizing their plan choices for the coming year.

Making the right moves here can reduce premium costs and lead to higher employee satisfaction, better health outcomes, and increased productivity.

However, optimizing health coverage during open enrollment can be daunting for small businesses that often lack the resources to dedicate to such a specific task.

In this guide, we’ll explain some key facts about open enrollment 2024, provide practical tips on how to prepare as an SMB, and explain why partnering with a PEO like BBSI may be the best healthcare-related choice you can make this year.

What’s Different About Open Enrollment 2024?

For small businesses, the 2024 open enrollment period comes with several updates and considerations that may affect how you manage employee health benefits:

Lowered Affordable Care Act (ACA) Affordability Threshold

The ACA affordability threshold for employer-sponsored health coverage has been reduced to 8.39% of an employee's household income, down from 9.12%. This lower threshold could impact how small businesses price their employee contributions to healthcare premiums.

Higher Contribution Limits for Health Savings Accounts (HSA) and Changes to High Deductible Health Plans (HDHP)

The contribution limits for HSAs have increased for 2024, allowing employees to save more pre-tax dollars ($4,150 for individuals and $8,300 for families)​. 

The minimum HDHP deductibles ($1,650 for individuals and $3,300 for families) and maximum out-of-pocket limits ($8,300 for individuals and $16,600 for families) have also risen slightly.

More Stringent Substantiation Requirements for FSAs

The IRS has reinforced stricter rules for Flexible Spending Accounts (FSAs), requiring more rigorous substantiation for eligible expenses. Businesses offering FSAs should review these guidelines to ensure compliance.

3 Practical Tips for SMBs Preparing for Open Enrollment 2024

With some planning and organization, you can ensure a smooth open-enrollment experience for you and your employees. Whether partnering with a PEO or handling things in-house, here are some practical tips to help you navigate open enrollment 2024 effectively.

1. Start Early

Don’t wait until the last minute to begin planning for open enrollment. 

Start by reviewing your current benefits offerings and analyzing what worked well in previous years. This will give you a head start on identifying any changes or improvements that might need to be made. Early preparation also gives you more time to compare different plans and assess which benefits make the most sense for your workforce.

2. Provide Resources for Employees

Employees often find the open enrollment process confusing, especially if they are unfamiliar with health insurance terms or don’t fully understand their options. Provide them with resources to make informed decisions:

• Offer informational sessions or webinars.
• Distribute easy-to-read guides that break down each benefit option.
• Ensure they have access to a point person who can answer questions.

3. Review Compliance Requirements

Open enrollment comes with many legal requirements, from state-specific mandates to federal regulations under the Affordable Care Act (ACA). 

Take the time to review these regulations carefully to ensure that your business remains compliant. If you're unsure about certain rules, consulting with a PEO or legal expert can help ensure you don’t overlook any critical requirements.

What is a PEO and How Can It Help with Open Enrollment 2024?

A Professional Employer Organization (PEO) is a service provider that helps businesses manage their human resources (HR) functions, including payroll, benefits, and risk management. 

This can be a game-changer for small and medium-sized businesses (SMBs), especially when facing the complexities of open enrollment 2024. 

What Exactly Does a PEO Do?

A PEO acts as a co-employer. This means they share responsibility for certain employment-related tasks, allowing you to focus on running your business. 

While you maintain control over your employees’ daily operations, the PEO steps in to handle the administrative tasks that typically bog down SMB owners. This includes employee benefits, taxes, and navigating the maze of changing regulations.

How a PEO Helps with Open Enrollment 2024

The enrollment period is a critical time for businesses. During this time, you need to choose the right benefits for your employees, ensure compliance with changing healthcare laws and regulations, and communicate plan changes effectively to your workforce.

A PEO can assist in several ways:

• Employee Benefits Administration: PEOs typically offer access to high-quality benefits packages that might otherwise be out of reach for smaller businesses. They take care of the logistics, from selecting plans to completing all paperwork properly.
  
  
• Regulatory Management: Open enrollment comes with a host of legal requirements. Keeping track of regulations—especially state and federal mandates—can be a full-time job. A PEO stays up-to-date with these changes, helping to ensure that your business remains compliant throughout the process.
  
  
• HR Expertise: With a PEO, you gain access to a team of HR professionals who can guide you and your employees through open enrollment. They help employees understand their options, which reduces confusion and increases employee satisfaction.

Instead of being bogged down by paperwork and legal jargon, you can focus on what matters most—running your business and supporting your team. 

How BBSI Can Simplify Open Enrollment 2024 For Your Small Business

Change always comes with a certain degree of uncertainty, and uncertainty can lead to anxiety. However, that doesn’t mean it has to lead to mistakes. By preparing early, staying on top of important changes, and choosing to work with the right expert partner, open enrollment 2024 can be a real opportunity.

SMB owners who partner with BBSI don’t have to worry about uncertainty during open enrollment 2024. Instead, they can rely on us to ensure they’re choosing the optimal healthcare plan for their workforce–and getting the best possible rate on those plans.

You can access plans and rates typically reserved for the largest corporations. We can do this thanks to our ability to leverage the buying power of a nationwide network of small businesses in all industries.

If you’re interested in what BBSI can do for you during open enrollment 2024, contact your local expert today, and let’s get started.