Missing Out on Open Enrollment Benefit Elections Can Cost Employees More than $1,000

As the open enrollment season comes into full swing, experts encourage workers to pay particularly close attention to benefit elections this year to help offset financial challenges brought on by the recession. One-in-four workers (25 percent) report that they don’t pay attention to benefit changes, figuring the same benefits would roll over from the previous year or feeling that the whole process is too confusing. Fifteen percent of hiring managers estimate more than 10 percent of their employees miss annual open enrollment deadlines each year on average. The survey, completed in September, included more than 2,900 hiring managers and more than 4,000 workers nationwide.

How much money do workers stand to lose? Human resource managers warn that failing to participate in open enrollment can have negative consequences on one’s pocketbook. One-third (34 percent) of human resource managers said missing open enrollment costs employees, on average, at least $500 in out-of-pocket expenses. Twenty percent reported that it costs employees more than $1,000 while 10 percent reported it costs employees more than $2,500.

What types of benefits don’t employees realize their companies offer? One of the biggest obstacles in securing participation in wallet-friendly programs is the lack of knowledge of certain offerings. When asked to identify which benefits employees typically don’t realize that their companies provide, human resource managers pointed to the following:

• Flexible healthcare spending (43 percent);
• Wellness benefits (45 percent);
• Tuition reimbursement (38 percent);
• Banking programs (25 percent);
• Discounts on personal entertainment (24 percent);
• Discounts on technology for personal use (22 percent);
• Discounts on travel for personal use (rental cars, airline tickets) (20 percent);
• Transit programs (10 percent); and
• Help with childcare (10 percent).

Thirty-one percent of workers report that they don’t know their company’s policy for updating benefits due to life-changing events such as marriage or the birth of a child. Workers who are not maximizing their benefit potential are literally giving away free money every year, said Rosemary Haefner, vice president of human resources at CareerBuilder. In today’s economic environment, it’s even more critical that employees make sure they are not missing out on benefit opportunities that can help them better manage personal expenses for themselves and their families.

Source: CareerBuilder.com.

Reprinted with permission. © CCH

<p>One-in-four workers report that they don't pay close attention to benefits changes, figuring that the same benefits roll over from the previous year.</p>

Missing Out on Open Enrollment Benefit Elections Can Cost Employees More than $1,000

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