Open Enrollment Best Practices for Texas Employers: An HR Manager's Playbook

For most HR teams, open enrollment means a few weeks of answering the same questions, chasing missing forms, and fixing errors after the deadline. It doesn't have to work that way. With a clear timeline and better communication, enrollment can run smoothly and employees can actually understand what they're choosing.

Start 90 days out

The most common enrollment problems start long before enrollment opens. If your plan year begins January 1, your renewal conversations should start in late summer or early fall, not in November. That gives you time to review renewal rates, evaluate alternatives, and make plan design decisions without rushing.

A workable timeline looks like this:

• 90 days before the plan year: Review the renewal, claims experience, and any plan design changes with your broker. Decide whether to shop the market.
• 60 days before: Finalize plans, contributions, and carriers. Update your enrollment platform and prepare materials.
• 45 days before: Announce enrollment dates and what's changing. Distribute required notices.
• 30 days before: Open enrollment. Hold information sessions and keep a channel open for questions.
• After enrollment closes: Audit elections, send files to carriers, and confirm payroll deductions before the first paycheck of the new year.

Decide: active or passive enrollment?

In a passive enrollment, employees who do nothing keep their current elections. In an active enrollment, every employee must make an election, or they may lose coverage. Passive enrollment is easier to administer. Active enrollment produces cleaner data and forces employees to look at their options.

A good rule of thumb: if you're changing carriers, changing plan options significantly, or haven't updated dependent information in several years, consider an active enrollment.

Communicate in plain language

Most employees don't understand the difference between a deductible and an out-of-pocket maximum, and they won't read a 20-page benefits guide. The most effective enrollment communication is short, visual, and focused on decisions:

• Lead with what's changing this year and what employees need to do
• Show real cost comparisons, such as what a typical doctor visit or prescription costs under each plan
• Explain the HSA if you offer a high-deductible plan, including any employer contribution
• Offer multiple formats: a short video, a one-page summary, and a live or recorded Q&A session
• Translate materials if a meaningful part of your workforce prefers another language

Don't forget the required notices

Enrollment is also when many annual notices go out. The specific requirements depend on your plan type and size, but common ones include:

• Summary of Benefits and Coverage (SBC) for each medical plan option
• Medicare Part D creditable coverage notice, which must go out before October 15 each year
• Children's Health Insurance Program (CHIP) notice
• Women's Health and Cancer Rights Act notice
• Updated Summary Plan Description or Summary of Material Modifications when plan terms change

Move enrollment online

Paper forms and spreadsheets are the biggest source of enrollment errors. A digital enrollment platform lets employees compare plans, add dependents with documentation, and confirm their elections. It also gives HR a clean record of every choice and can send eligibility data directly to carriers. The time savings in the first year alone usually justify the switch.

Audit before the new plan year starts

After enrollment closes, take a week to reconcile elections against carrier enrollment and payroll deductions. Catching a missing dependent or an incorrect deduction in December is far easier than fixing a denied claim in February.

The bottom line

A smooth open enrollment comes down to three things: starting early, communicating clearly, and using tools that reduce manual work. If your last enrollment felt chaotic, there's a better way to run the next one.

This article is for general educational purposes only and does not constitute legal, tax, or insurance advice. Notice and compliance requirements depend on your plan type, funding arrangement, and group size, and are subject to change. Consult a qualified advisor or benefits attorney for guidance specific to your plan.