You know that feeling when you get the annual benefits email, open it…and just stare? The premiums are higher. The plan names look familiar. But the coverage? Not so much.
Yeah. We’ve all been there.
Welcome to Open Enrollment 2025, where “same plan” doesn’t necessarily mean the same experience. Health plan premiums are increasing, forcing employees to pay more while often getting less in return. For HR teams, this creates a challenging communication moment, to say the least.
You’re now sharing benefits details alongside delivering tough financial news. That’s exactly when leading with the why matters most.
Health Costs Are Climbing Fast
Employers are projecting an average 9% increase in health plan costs. This will mark the steepest increase in over a decade. On the ACA exchanges, proposed premium increases range from 4% to 7% depending on the market and carrier.
There’s a reason for the increases in healthcare spending:
- Inflation (that pesky 9-letter word) in medical services and prescription drugs
- Increased utilization as employees catch up on delayed care
- Ongoing labor shortages in healthcare that raise provider costs
- Potential policy shifts, including the loss of enhanced tax credit, could make coverage more expensive for subsidized employees
This financial pressure is affecting both the employer and the employees. Those already managing tight budgets are feeling the squeeze even more.
Why This Context Matters for Communication
Employees don’t want to just hear that costs are going up. They want to understand why. Transparency builds trust, even when the message is difficult. When you lead with the bigger picture, you show empathy and fairness.
Consider adding some context:
“Like many employers, we’re seeing our health plan costs rise due to inflation and higher utilization.”
“We know this increase isn’t easy. Our goal is to be transparent and help you make the best choices for your health and finances.”
Pro Tip: Use a short explainer video to walk employees through the “why” behind plan changes. Benefits videos can help bring national trends and your company’s story together. Making it engaging and easy to understand can break down some of the immediate resistance.
What’s Changing With Plans, Networks, and Cost Structures
If explaining rising premiums is tough, breaking down what’s actually changing in the plans might be even tougher. It’s one thing to say costs are up. It’s another to walk someone through new deductibles, copay structures, or provider network updates without their eyes glazing over.
But here’s the thing: a lot is changing this year. And employees will need some help making sense of it all.
Same Plan Name, Different Experience
Even if employees choose the same health plan they had last year, the experience and out-of-pocket costs could be quite different. Here’s what we’re seeing across employer and exchange-based plans:
- Higher deductibles and out-of-pocket maximums
- Changes in copays and coinsurance
- Narrower provider networks or new coverage tiers
- Modified prescription drug formularies
For employees, this can feel like a game of spot the difference. The only problem is that it affects their health and finances. That’s why simplifying these changes into digestible, employee-friendly formats is essential.
Helpful Tip: Consider visuals like side-by-side plan comparisons, what’s new callouts, or FAQs tailored to your most common questions. Employees don’t want a 30-page summary. They want the quick hits.
Don’t Assume They’ll Read the Fine Print
Many employees auto-enroll or assume their plan hasn’t changed. But in a year like this, defaulting without reviewing can lead to real frustration later.
This is where proactive communication comes in:
- Highlight the most important difference from last year
- Use plain language, not benefits jargon
- Share examples like:
“If you typically visit an out-of-network specialist, double-check whether they’re still covered this year.”
Try This: Use a customizable benefits guide or a digital postcard to highlight plan changes and link to more details. These formats are mobile-friendly and easy to update throughout enrollment.
Employees Need Help Comparing Options
With plan structures shifting and costs rising, employees might be ready to explore other plan options for the first time in years. But comparing plans can feel overwhelming.
This is your time to shine:
- Make it easy to find those side-by-side comparisons
- Explain plan types in real-life terms (“If you rarely go to the doctor, this plan might save you money…”)
- Allow for help to be found quickly, digitally or in person
Tool Tip: A decision-support tool can guide employees to the most cost-effective plan based on their usage and needs.
What You Can Do To Help Employees Make Smart Decisions
Once employees understand why things are changing and what the changes are, the next logical question is, “So…what do I do now?”
And in a year where everything feels a little more expensive and a little more complicated, clear direction matters more than ever.
The good news is you don’t need to create a long and involved process to relay information. Your focus should be to help them feel informed, supported, and capable of making the right choice for themselves and their families.
Start With the Basics
First, make sure employees know:
- When they need to enroll, (most states: Nov.1 – Mid Jan.)
- What happens if they don’t (i.e., default coverage or no coverage)
- Where to go for help. This can be HR, a benefits microsite, or a Q&A session.
Keep it simple, repeat often. A single email won’t cut it.
Try This: A short, punchy digital postcard from HR with enrollment dates, key deadlines, and a link to plan details. These can cut through the inbox clutter and work great on mobile.
Make It Easy to Compare
A lot of employees will be rethinking their plan options this year. It might be the first time in a while they’ve done this, so don’t make them go at it alone.
Here’s how to help:
- Offer a plan comparison tool that shows side-by-side features and costs
- Break down plan types using real-life examples
- Host a quick webinar or recorded session walking through this year’s options and what’s changed
Decision support tools are an excellent way to guide employees through a short questionnaire and recommend plans based on their needs, usage, and financial preferences.
Tailor Messages for Different Employees
One-size-fits-all communication doesn’t cut it, especially with a hybrid or distributed workforce. What resonates with a remote salaried employee might not work for an hourly worker on-site.
Segment your messaging where possible. Create different email content for hourly vs. salaried staff. Provide multilingual versions of key materials, and provide office hours or live chat options for employees who prefer a quick personal touch.
Tip: Add key FAQs to your benefit microsite so employees can self-serve answers anytime, anywhere.
Turning Tough News into a Trust-Building Moment
This might not be the easiest open enrollment season, but it can be one of the most meaningful.
When costs are rising and plans are shifting, employees are paying closer attention. That makes how you communicate just as important as what you communicate. With a simple, clear message flow and a little help from digital tools, you’re going beyond managing logistics. You’re building trust. You’re showing empathy. You’re helping people make smarter decisions that directly impact their lives.
And in a year when so much feels uncertain, that kind of support goes a long way.