Fall marks the beginning of benefits renewal season. With most health plans renewing on January 1, it’s time to start planning now to give your team more time to evaluate options and ensure you get the attention and support you need.

Brokers, carriers, and administrators all see a surge of year-end activity, which can slow response times. Employers who wait until the end of the year may experience fewer carrier choices, rushed plan designs, and stressed-out employees during open enrollment.

Getting a head start is especially important if you’re considering new, flexible options, such as an Individual Coverage HRA (ICHRA) or a Qualified Small Employer HRA (QSEHRA), or adding new benefits like Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), or a Cafeteria Plan. These require extra time for compliance, payroll coordination, and employee education. Starting early ensures a smooth, successful benefits renewal for everyone.

To make the most of benefits renewal season, here are eight key areas to explore:

1. Know the Eligibility Rules

The Affordable Care Act (ACA) sets different rules and obligations for employers based on their size. A small employer typically has fewer than 50 full-time equivalent (FTE) employees, while a large employer (or ALE, Applicable Large Employer) has 50 or more. This distinction is critical because ALEs are mandated to offer affordable health coverage that meets minimum value standards or face a penalty. Small employers, on the other hand, are not subject to this mandate and have more flexibility in their options, like offering a QSEHRA. Understanding your company’s classification is the first step to ensuring compliance and exploring the right plan types. This also affects complex tasks like affordability testing and ACA reporting, which require time and accurate data.

2. Review Your Company’s Current Situation

Before you can plan for the future, you need to assess the present. Look at your workforce dynamics and employee demographics.

  • Have you added remote workers in new states?
  • Are your employees skewing older or younger?
  • Have you noticed changes in plan participation?

These factors can significantly influence which plan will be the most effective and affordable. For example, a younger, healthier workforce might thrive with a high-deductible health plan (HDHP) paired with an HSA, while a more diverse workforce might benefit from a flexible Cafeteria Plan with multiple options.

3. Explore Flexible Plan Design Options

Renewal season is a chance to explore plans beyond traditional group insurance:

  • ICHRA, where employees shop for their own plans while employers set budgets.
  • QSEHRA, a good fit for employers with under 50 employees who want to reimburse premiums and expenses.
  • Traditional HRAs, which can be paired with group plans to offset deductibles.
  • FSAs and Dependent Care FSAs, which help employees save pre-tax on everyday expenses.
  • HSAs, with expanded access beginning in 2026 so more employees can qualify.

This is the time to assess possible alternative benefits options in either the modern or traditional benefits space.

4. Shop Your Options or Empower Your Employees

The benefits renewal decision often comes down to two main paths:

  • Shopping for a new carrier: This involves soliciting quotes, analyzing plan documents, and negotiating with different insurance companies to find the best rate and coverage. This process is time-consuming and can involve extensive back-and-forth communication.
  • Transitioning to a new model (e.g., ICHRA): This shifts the responsibility of choosing a plan to the employee. Your role changes from shopping for a plan to setting clear contribution strategies and providing employees with the resources to make informed choices. This can simplify your administrative burden while giving employees unprecedented control over their healthcare.

Do not wait until December. Setting up an ICHRA, QSEHRA, HRA, or Cafeteria Plan requires plan design, compliance documentation, payroll coordination, and employee education. Employers who start in September or October will be ready to launch smoothly on January 1, and employees will thank you for the clarity during enrollment.

5. Think About Expanding Your Benefits

Renewal is an ideal time to enhance your total benefits package. This can help you attract and retain talent in a competitive market.

  • Cafeteria Plans: These plans, also known as Section 125 plans, allow employees to pay for certain benefits with pre-tax dollars, reducing their taxable income. Benefits can include group health, dental, vision, life insurance, and FSAs.
  • Ancillary Coverage: Offering benefits like dental, vision, life, or disability insurance shows a commitment to your employees’ well-being beyond basic health care.
  • Lifestyle Spending Accounts (LSAs): These employer-funded accounts are a modern, flexible benefit that can be used for things like gym memberships, mental wellness apps, or even home office equipment. Unlike HRAs, LSAs are not regulated by health insurance laws, giving you greater flexibility.

6. Communicate Early and Often with Employees and Brokers

Effective communication is vital for a smooth renewal. Employees need at least 30 days before enrollment to understand their options and make smart decisions.

  • Transparency: Clearly explain why changes are happening, whether it’s to control costs, improve flexibility, or comply with new regulations.
  • Multiple Channels: Use a mix of emails, town halls, video presentations, and Q&A sessions to reach employees with different learning styles. Avoid jargon and present information in a simple, easy-to-understand format.
  • Involve Your Broker: Your broker is an essential partner. They can provide market insights, help you model different scenarios, and act as a liaison with carriers and administrators. Starting the conversation with them early ensures they can prioritize your renewal needs before their schedules become too crowded.

At Flyte, we work hand-in-hand with brokers, supporting them with compliance, plan design, and employee communication so that both employers and employees have the best possible experience.

7. Strategize Around Cost Sharing

With premiums rising, many employers look for ways to share costs without shifting the entire financial burden to employees.

  • HRAs with HDHPs: By pairing a high-deductible plan with an HRA, you can use the HRA to help employees cover their deductible, keeping the employee’s out-of-pocket costs manageable.
  • Cafeteria Plan Contributions: Allow employees to use pre-tax contributions for dental, vision, or other out-of-pocket costs.
  • HSA Employer Match: Offering to match employee HSA contributions encourages participation and helps them build a significant nest egg for future medical expenses.

8. Partner With Experts

The renewal process can be complex, and most businesses don’t have a full-time benefits expert on staff. Partnering with Flyte or a Benefits Consultant can provide the expertise you need to navigate these challenges.

  • Compliance Support: Experts can help you stay current with ever-changing ACA regulations and IRS guidelines.
  • Plan Design and Administration: They can help you design and implement new plan models like ICHRA or QSEHRA and manage the day-to-day administration, including claims processing and reporting.
  • Enhanced Broker Relationship: A good partner doesn’t replace your broker; they work alongside them, providing specialized tools and services that enhance the broker’s offerings and make the renewal process easier for everyone.

Benefits Renewal with Flyte’s Strategic Alternatives

Renewal is more than clicking “renew” on your existing plan. It is a chance to rethink, refresh, and expand your benefits strategy. Whether you stay with your current carrier, move to an ICHRA, or add supplemental benefits, Flyte HCM is here to help you design, implement, and administer solutions that work for your business and your people.

Start planning your 2026 benefits renewal today. Contact Flyte HCM now so your broker, your business, and your employees all have the time and support needed for a smooth open enrollment.