Businesses: Consider these 8 benefits strategies as open enrollment approaches

This piece is sponsored by Holmes Murphy.

Open enrollment for 2026 benefits starts soon – but it’s not too late for businesses to enhance their offerings or reevaluate their plans.

“You still can have those conversations, but we’re getting close to needing to firm up plans for next year,” said Lori Clausen, vice president of client service at Holmes Murphy’s Sioux Falls office.

No matter what your business’ size or industry, you likely can benefit from reviewing these approaches.

Start soon and strategize

At Holmes Murphy, “we’re building up to open enrollment and having conversations with clients around strategy,” Clausen said.

“That includes ensuring your current benefit package is competitive. Often, our first step is doing benchmarking reports by industry and geography to see what other like employers/industries are providing in terms of benefits and reviewing objectives around benefit requirements that may vary by state if you do business in multiple states.”

Holmes Murphy also strategizes with clients “to understand what’s changed in their business,” she continued.

“Are they looking to expand? Add or delete head count? Is there a certain segment of the workforce they’re trying to attract from a talent perspective? Once we know, we can bring benefit solutions based on those needs.”

Consider lifestyle spending accounts

One emerging benefit many Holmes Murphy clients are enjoying involves a lifestyle spending account. It’s a taxable, employer-funded benefit to support employee physical, mental, emotional and financial health and wellness.

Employers determine their annual contribution amount and how employees can spend their LSA funds, placing parameters on qualifying products, services and expense. Those could include:

• Pet care expenses.
• Fitness center memberships.
• Mindfulness and meditation apps.
• Life coaching.
• Financial planning and education.
• Continuing education courses, certificates and industry conferences.
• Wellness services and nutrition counseling.

“It’s a taxable benefit, but it fits a hole in a place where employers want to provide a benefit that adds value for employees,” Clausen said. “There’s a whole host of options you can include, but it usually revolves around physical health, care services, financial and professional development.”

Review small-group options

Consumers can use subsidies to pay for private health coverage purchased through HealthCare.gov or other Affordable Care Act public exchange programs. If Congress fails to extend the tax credits, some smaller businesses or mom-and-pop operations will want to explore the small-group option as an alternative.

“This option may allow composite rating and some discounts on a group basis,” Clausen said. “They may have to look at one carrier over a broad-based carrier, but it’s certainly something we’re looking at with some of our clients.”

Explore infertility treatment coverage

More employers are asking about coverage for infertility treatment, Clausen said.

“It’s usually larger employers, but depending on the workforce population, this is another benefit category where we are getting requests to see what it would cost from a feasibility standpoint,” she said. “It really depends on the employer group, but we’re looking at options around coverage for infertility treatment because it’s such a huge expense.”

Review employee assistance plans

Even small employers now are offering employee assistance plans, or EAPs, Clausen said.

“These plans are vastly different from business to business, but what we’re seeing is employers wanting to offer this coverage and acknowledging the benefit because mental health and wellness is a concern,” she said.

“Team members often can do coaching sessions with a professional mental health counselor or coach, including virtually, and an employer group often can elect how many visits are covered. It’s a huge benefit because in addition to  counseling, EAPs often will provide multiple coverages — everything from legal situations to elder care assistance.”

Businesses, including small ones, such as two dozen team members, likely could provide “a very strong EAP for about $5 per employee per month,” she added. “People don’t always think about that, but it’s something we always want to talk about during open enrollment.”

Learn how worksite benefits are evolving

Many employers offer worksite benefits, which are supplementary, employee-funded voluntary benefits that provide additional insurance and financial protection beyond a core benefits package.

“These are things like critical illness and accident plans, and many of those worksite benefits now have a wellness component you’ll want to review,” Clausen said. “If you get an annual physical or cancer screening, you could receive maybe a $50 or $100 wellness incentive that helps to reduce the annual cost of the premium.”

Open enrollment is one time to sit down and educate employees about  their coverage options – but it’s also a good topic to hit on throughout the year, she said.

Consider new vendor solutions

Some employers are beginning to offer and include  vendor solutions designed to help in specific situations or with specific conditions.

“Think of someone with diabetes or who has just been diagnosed with cancer. These condition-specific vendor solutions connect employees with an advocate or concierge service,” Clausen said.

“It’s a high-level medical professional who can help them navigate their options and often includes a network of other professionals to deliver the best solutions to the member. It’s very cutting-edge, and we’re seeing some of our larger groups add these specific services. Innovative specific coverage offerings can help with the betterment of team members who are living with chronic conditions or receive these diagnoses.”

Don’t forget employee communication

Employers also should be mindful of how they talk with employees during open enrollment, Clausen said.

“It’s so important to educate employees,” she said. “We talk with employees about how valuable their benefits are. They’re huge in most cases.”

Holmes Murphy also has been asked by employers “to be that voice to educate employees,” she said.

“We’re often asked to help with pre-Medicare education, financial education around retirement, helping employees to understand their group life or group disability coverages, and educate and share with them if their plans allow for the ability to have a free will-planning benefit or probate services provided. Sometimes, there’s an identity theft value-add that employees don’t know about, so they do not take advantage of it. It’s important to help employees understand and honestly appreciate more the benefits that may be provided.”

To get connected with Holmes Murphy and the company’s employee benefits experts to ensure you’re on the right track for open enrollment, don’t hesitate to reach out to via their website!