19119_Authority_April_2026

municipalauthorities.org │ 59 Mistake: Not Distributing Open Enrollment Materials to All Eligible Employees Employers should ensure that all eligible individuals, including newly eligible employees, those on leave or furlough, and COBRA beneficiaries, receive open enrollment materials with clear benefit details and deadlines. They should share details on benefits, costs, election procedures, and deadlines through multiple channels. It’s also important to keep distribution records to help prevent disputes. Mistake: Underestimating the Importance of Election Deadlines Open enrollment typically occurs in the months before the plan year and should end early enough to confirm elections and process enrollments. Employees’ benefit elections, made pre-tax through a Section 125 plan, are generally effective for the upcoming year and cannot be changed unless a qualifying life event occurs. To reduce errors, employers should communicate deadlines clearly and encourage early enrollment. Mistake: Not Describing the Availability of a Reasonable Alternative Standard for Health-contingent Wellness Programs Health-contingent wellness programs must offer a reasonable alternative standard to comply with HIPAA nondiscrimination requirements. Employers should clearly disclose this option, including contact information and a statement that physician recommendations will be accommodated, in all plan materials describing surcharges or rewards. To learn more, contact Clyde Villa at cvilla@NISBenefits.com or 800.627.3660. S Open enrollment article continued from page 28. Clyde Villa is a public-sector insurance specialist with 25+ years of experience at National Insurance Services. He is a licensed insurance representative with a Group Benefits Disability Specialist (GBDS) designation. He specializes in life, disability, vision, and dental insurance for public sector organizations in Pennsylvania, Connecticut, Maryland, New Jersey, West Virginia, and Virginia.