Open enrollment is one of the most critical and resource-intensive periods of the year for employers. Decisions made during this window impact employee coverage, compliance obligations, payroll accuracy, and administrative workload for the entire plan year. Yet many organizations fall into the same open enrollment mistakes year after year.
These mistakes often stem from rushed timelines, manual processes, and disconnected systems. The result is missed deadlines, frustrated employees, and unnecessary compliance risk. Below are 10 common open enrollment mistakes employers make, along with practical ways to avoid them.
Mistake 1 — Waiting too long to prepare for open enrollment
One of the most common open enrollment mistakes is underestimating how much preparation is required. Waiting until enrollment is right around the corner often leads to last-minute scrambling, manual workarounds, and errors that could have been avoided.
Early preparation allows employers to:
- Finalize plan details and contribution structures
- Review eligibility rules and employee data
- Coordinate timelines with vendors and carriers
When preparation starts early and systems are properly configured, open enrollment runs more smoothly and places less strain on HR teams.
Mistake 2 — Not reviewing or updating plan information in advance
Another frequent open enrollment mistake is assuming plan information can simply roll over from the previous year. In reality, plan designs, rates, eligibility requirements, and carrier rules often change annually.
Failing to review and update plan information can result in:
- Employees enrolling in incorrect plans
- Misapplied deductions
- Downstream payroll and billing issues
Employers can avoid this mistake by ensuring plan updates are reviewed, validated, and clearly reflected in enrollment materials and systems before open enrollment begins.
Mistake 3 — Relying on manual processes to manage enrollment
Manual enrollment processes are one of the most costly open enrollment mistakes employers make. Spreadsheets, paper forms, and email-based tracking may work during slower periods, but they tend to break down during open enrollment.
Manual processes increase the risk of:
- Data entry errors
- Missed elections or changes
- Inconsistent recordkeeping
Automated enrollment workflows help reduce these risks by enforcing eligibility rules, validating elections, and capturing changes in real time.
Mistake 4 — Improperly configuring eligibility and contributions
Even when employers use enrollment systems, incorrect setup can still create problems. Eligibility rules, waiting periods, and contribution amounts must be accurately configured to avoid enrollment errors.
This open enrollment mistake often leads to:
- Ineligible employees receiving coverage
- Incorrect payroll deductions
- Time-consuming corrections after enrollment closes
Careful system configuration and review before open enrollment begins can prevent these issues from impacting the plan year.
Mistake 5 — Missing critical open enrollment deadlines
Missing deadlines is a high-risk open enrollment mistake for both employers and employees. Late enrollments, delayed elections, or missed notices can limit employee options and expose employers to compliance concerns.
Clear timelines and automated reminders help ensure:
- Employees know when action is required
- Enrollment windows are enforced consistently
- Qualifying Life Events are handled appropriately outside of open enrollment
Strong deadline management reduces confusion and minimizes last-minute exceptions.
Mistake 6 — Poor communication around benefit changes
When benefit changes are not communicated clearly, employees are more likely to make incorrect or uninformed elections. This open enrollment mistake often results in increased HR inquiries and employee dissatisfaction.
Effective communication should:
- Clearly explain what is changing and what is staying the same
- Use plain language instead of insurance terminology
- Be delivered across multiple channels for visibility
- Provide decision support tools to help employees compare plans and understand total cost and coverage implications
Consistent, centralized communication helps employees navigate open enrollment with confidence.
Mistake 7 — Assuming employees will figure it out on their own
Many open enrollment mistakes stem from assuming employees understand how their benefits work. Concepts like deductibles, networks, out-of-pocket maximums, and plan combinations can be confusing.
When employees lack support, employers often see:
- A spike in questions during open enrollment
- Increased enrollment errors
- More corrections after the fact
Providing access to decision support tools, along with educational resources and enrollment support, can significantly reduce administrative burden during open enrollment and help employees make informed choices.
Mistake 8 — Overlooking required open enrollment compliance notices
Compliance-related oversights are among the most serious open enrollment mistakes employers can make.
Notices employers commonly miss or mismanage
- Summary of Benefits and Coverage (SBC)
- Summary Plan Description (SPD)
- CHIP Notice
- HIPAA Notices
- COBRA Notices
- Medicare Part D Notice
- WHCRA Notice
- Grandfathered Plan Notice (when applicable)
Risks of missing required notices
Failing to distribute required notices accurately and on time can lead to penalties, audits, and disputes with employees. Manual tracking and inconsistent delivery methods increase the likelihood of compliance gaps.
Centralized processes help ensure notices are distributed correctly and documented properly.
Mistake 9 — Not providing adequate support during enrollment
Open enrollment can overwhelm internal HR teams, especially when employees need help understanding their options or completing elections. A lack of support is a common open enrollment mistake that creates frustration on both sides.
Adequate enrollment support helps:
- Reduce HR inbox volume
- Improve employee confidence in their elections
- Prevent errors caused by misunderstandings
Providing structured support during open enrollment improves both efficiency and the employee experience.
Mistake 10 — Failing to review enrollment results after open enrollment ends
Many employers treat open enrollment as a one-time event, but skipping post-enrollment review is a missed opportunity.
After open enrollment closes, employers should review:
- Enrollment participation and trends
- Common employee questions or issues
- Areas where communication or processes fell short
Using this data helps employers avoid repeating the same open enrollment mistakes the following year.
Bonus open enrollment mistakes employers often overlook
Treating open enrollment as a once-a-year task
Open enrollment is more effective when supported by year-round processes, accurate data management, and ongoing communication.
Trying to manage open enrollment without the right support
Attempting to handle open enrollment with limited tools or internal resources alone can increase risk and administrative strain. Many employers benefit from leveraging best of breed benefits technology and external support to simplify processes and maintain compliance.
Final thoughts
Open enrollment mistakes can create lasting challenges well beyond the enrollment window itself. From compliance risks to administrative inefficiencies, these issues often share a common root: disconnected processes and insufficient support.
By planning early, improving communication, and using the right tools and expertise, including decision support tools and dedicated enrollment resources, employers can reduce risk, ease administrative burden, and run a more effective open enrollment year after year.
