Open Enrollment 2020: Planning Amid Uncertainty

Open enrollment season arrives amid unprecedented uncertainty. The pandemic disrupted everything—including how employers approach benefits decisions. Here's what we're seeing as employers plan for 2021.

The Utilization Question

Normal renewal planning relies on historical utilization. But 2020 utilization was anything but normal:

• Elective procedures were deferred
• Preventive care was skipped
• Some employees avoided all medical care
• Mental health utilization spiked
• Telehealth went from 2% to 20%+ of visits

How do you plan when the historical data doesn't predict the future?

Carrier Approaches

Carriers are taking varied approaches to renewals:

Conservative pricing: Some carriers are pricing in expected utilization rebound, leading to higher renewals than historical claims might suggest.

Wait and see: Others are offering moderate renewals with provisions for adjustment based on how 2021 unfolds.

Experience credits: Some are providing credits to account for the unusual 2020 experience.

The right approach depends on the employer's specific situation and carrier relationship.

Employer Priorities

In conversations with employers, we're hearing consistent themes:

Stability over change: Most employers don't want to make major plan design changes during an already turbulent time. Employees have enough to worry about.

Telehealth permanence: The telehealth expansions of 2020 will stay. Employers see the value and employee satisfaction.

Mental health focus: Expect continued investment in mental health benefits as employers recognize the pandemic's psychological toll.

Cost consciousness: Despite the desire for stability, budgets matter. Employers are looking for cost savings that don't burden employees.

Recommendations

For consultants guiding employers through this unusual open enrollment:

1. Contextualize the renewal: Help employers understand what's driving their specific numbers.

1. Benchmark carefully: 2020 benchmarks may not reflect normal conditions. Consider multi-year trends.

1. Communicate proactively: Employees are anxious. Clear, early communication about benefits reduces stress.

1. Plan for flexibility: Build in provisions for adjustment as the pandemic continues to evolve.

This isn't a normal open enrollment. Adjust your approach accordingly.