Employers often think they have one chance each year to make changes to their administrative services and vendors. We are going to let you in on a dirty little secret—open enrollment is not the only time to consider a change. In fact, there are certain situations when a mid-year change just makes sense (or cents in some cases).
So, let’s explore the most common reasons to consider a mid-year change.
No plan year to consider.
There are a few benefits like commuter benefits, specialty accounts, certain ancillary benefits, and long-term care benefits that are not directly tied to an annual election period and can be easily changed at any time. We get wrapped up in open enrollment and annual elections and in doing so can sometimes overlook these opportunities.
It lowers your risk.
Often, employers look to third party administrators for COBRA administration services to reduce risk and ensure compliance. While you could be your own COBRA Administrator, there are specific risks and penalties that you open yourself up to. If you are already outsourcing COBRA services, you may find it valuable to evaluate the COBRA services you have with 5 questions to ask about your COBRA solution. When it comes to managing your organizational risk, waiting months can be a costly decision.
No time like the present.
If open enrollment was a family reunion, medical benefits would be the beloved grandmother that everyone comes to see and hopes to get precious time with. Pre-tax benefit accounts are more like the cousin everyone forgets about at the reunion. Sure, that cousin was there. But, are you even sure what their name was? It is only when you are passing through their town and stop for a visit that you get to know the cousin. Similarly, open enrollment is all about the medical plans.
Spending a little one-on-one time with your pre-tax benefit accounts can make all the difference. As an added bonus, due to COVID-relief provisions passed in the year-end spending bill, participants can make mid-year FSA election changes for 2021 plan years.
Sometimes, you need to break-up to find something better.
Keeping with the analogies, you are in a relationship. It has gone sour and you know a break-up is inevitable. But, you tell yourself maybe they will change. After months, the pattern has formed and it is clear the relationship is not working. What do you do? Do you stick it out? Or, do you look for the clean break so that you can move forward and find happiness?
In the same vein, you might need to break-up with your current vendor in order to find something better.
So…what does a mid-year change look like?
A mid-year change is not something you need to fear. Benefit Resource is here to provide you with a smooth mid-year transition and enhanced customer service. You could even say switching to Benefit Resource is an easy as 1,2,3!
- Quiet Period: During a mid-year takeover, participants will typically have a 7-10 day Quiet Period which allows all transaction and claim activity to settle with the prior administrator before migrating to Benefit Resource.
- Data Submission & Review: You (or your prior administrator) will provide a Takeover File. This will outline demographic data, election information, deposit totals and claims paid summaries.
- Takeover Processed and Get Started: Takeover information is processed and participants will receive their login credentials for BRiWeb and the Beniversal Prepaid Mastercard for use with their account.