What Happens if Your Employee Misses Open Enrollment?

There are strict deadlines for open enrollment each year. It opens nationally on November 1st, and closes on January 15th. Some states, such as New York and California, have extended deadlines through January 31st. Click here to see your state’s open enrollment period. 

During this period, people have the opportunity to enroll in healthcare coverage, or change their plans. Failing to take action during this time can pose serious consequences because open enrollment is the time employers can take advantage of having health, dental, vision, life and other voluntary benefit insurance plans. 

Enrolling after the deadline means that there is no way to make changes to your plan or enroll again until it opens back up a year later. 

What happens if your employee misses open enrollment?

Employees who miss the deadline to sign up for health insurance during open enrollment could face a year without health insurance. In turn, those without coverage may have to pay an individual mandate penalty on their next tax return. However, there are a few options available to employees depending on their circumstances.  

What other options can you provide to your employees?

Depending on the employee’s circumstances, they may be eligible to register for alternative coverage options. 

Medicaid 

Enrollment for Medicaid is open year-round to those seeing to apply. Eligibility is based on federal requirements that differ depending on the state. It extends coverage for:

• Low-income adults 
• Children 
• Pregnant women 
• Elderly adults 

Short-term Health Insurance 

Private insurance companies offer short-term health insurance policies. Most do not cover pre-existing conditions nor do they guarantee coverage because they are not required to fit ACA minimum essential coverage (MEC) benefits. 

Young Adult Benefit Plan 

Those under 26 years old are eligible to join their parent’s plan if that plan offers dependent coverage. This plan does not require the child to be employed, a student, or have a child. A caveat may include that registration for the child may need to occur during open registration. Rules and regulations for this may vary depending on plan type and state located.

Qualifying Events 

If a qualifying event occurs, employees have the opportunity to change their plan. 

Qualifying events are the only exception for employees to add or change health insurance after open enrollment deadlines. If any of the following occur, your employee is able to adjust or enroll in health insurance:

• Marriage 
• Divorce if the divorce is counted as a qualifying event by the insurer, or the divocre causes a loss of health coverage 
• Death in the family 
• Birth of a child 
• Adopting a child 
• Loss of health coverage
• Turning 26 and losing eligibility as a dependant 
• Becoming a United States citizen 
• Increased pay that moves the employee out of the Medicaid coverage gap 
• Change in income changing eligibility requirements 
• Grandfather or grandmother plan renewal 
• Moving to an area where there are different health plans 
• Changing jobs 

How to Encourage Employees to Be Proactive About Benefits Selection

Missing open enrollment can leave employees without critical coverage for an entire year. Employers play a key role in ensuring their workforce understands the deadlines, the importance of benefits, and the options available. A clear communication strategy helps reduce missed enrollments and increases adoption of benefits across your organization.

Communication Guide for Open Enrollment Awareness

1. Breakroom Posters & Common Area Reminders (4–6 weeks before open enrollment)
   Place posters in high-traffic areas such as breakrooms, time clock stations, and entrances.
   Example Text:
   “Open Enrollment is Coming! Don’t miss your chance to select health, dental, vision, and other benefits. Deadline: January 15. Check your email or HR portal for details.”
2. Paystub Reminders (4 weeks before and during open enrollment)
   Add a short reminder to employee paystubs to reinforce the message.
   Example Text: “Reminder: Open Enrollment ends January 15. Log in today to review and select your benefits.”
3. Company-Wide Email Campaign (Start 6 weeks out with reminders every 2 weeks)
   Send a series of emails that build awareness, urgency, and follow-through.

• Initial Announcement (6 weeks out):
  Subject: “Open Enrollment is Coming—Get Ready to Choose Your Benefits”
  Body: “Open Enrollment begins November 1. This is your annual opportunity to enroll in or make changes to your benefits. Be sure to review your options and deadlines.”
• Mid-Period Reminder (4 weeks out):
  Subject: “Don’t Miss Out on Your Benefits”
  Body: “Remember: Open Enrollment is now open until January 15. Take time to log in and make your selections before the deadline.”
• Final Week Push (1 week out):
  Subject: “Final Reminder: Open Enrollment Ends Soon”
  Body: “The deadline to select your benefits is January 15. Missing this deadline means you may go without coverage for the year unless you qualify for a special enrollment event. Act now to secure your benefits.”
  

4. Departmental or All-Hands Announcements (Start 4 weeks before deadline)
   Managers and HR leaders should regularly remind employees during meetings.
   Example Talking Point:
   “Open Enrollment is open now through January 15. If you haven’t already selected your benefits, please log in today. Missing the deadline could mean going without coverage this year.”
5. Follow-Up & Confirmation (After enrollment closes)
   Send a confirmation email to employees who have completed enrollment and follow up individually with those who have not.

This type of communication cadence keeps benefits top-of-mind and helps employees feel supported in making informed decisions. Employers who invest in awareness campaigns see higher benefits adoption, reduced turnover, and improved employee satisfaction.

Learn more

Employers who invest in their employees and encourage them to take full advantage of their benefits increase productivity and attract top talent. Learn more about why you should invest in healthcare for your employees here.