Open Enrollment: IRS Updates and AI Tools Help Ensure Compliance

Before open enrollment kicks off later this year, employers will want to ensure compliance while also thinking about how to enhance their current health plans. In the SHRM webinar “Maximizing Value and Compliance: HR Strategies for a Successful Open Enrollment Season,” SHRM HR Knowledge Advisors Robyn Hopper, SHRM-CP, and Jennifer Chang, SHRM-CP, discussed what’s new for the upcoming open enrollment period, changes in IRS limits, ways for employers to save money, and which benefits are currently trending.  

IRS Limits and Compliance Updates 

The IRS has released several key figures for 2026, although some details –– such as contribution limits for flexible spending accounts and 401(k) accounts –– are still pending.  

“The IRS has published some of the limits, but they haven’t done everything just yet,” Hopper noted. “Right now, we know that the limits for the health savings accounts (HSAs) and the high-deductible plans” are available. 

Next year, HSA annual contribution limits will be $4,300 for individual coverage and $8,550 for family coverage. To qualify, high-deductible health plans (HDHPs) must have a minimum deductible of $1,700 for individual and $3,400 for family coverage. Industry watchers predict “an increase of around $41,000 more” for 401(k) contributions, according to Hopper.  

Employers with 50 or more full-time employees should also ensure they comply with the Affordable Care Act (ACA), which requires organizations to offer minimum-value, affordable health coverage. “If you’re a larger employer, the ACA regulations, which require employers to offer the affordable health care at a minimum value, will also factor in with an employer’s plan design and their benefit strategies,” Hopper explained.  

As of last year, under the Paperwork Burden Reduction Act, employers are no longer required to provide employees with Form 1095-C unless requested. Employers should post a notice that the form is available upon request, Hopper recommended.  

Quiz: Open Enrollment Practices in the US  

Plan Design and Wellness  

With health care inflation a continued concern, employers may wish to rethink their plan design strategies and invest in wellness initiatives. “Inflation will likely drive up health care premiums,” Chang said, but employers can counter this by “creating preventative care programs like wellness initiatives that focus on fitness, mental health, or even smoking cessation or chronic disease management.” She noted that such programs have been “shown to lessen usage of health care plans, which decrease the costs overall.” 

Employers might also consider tiered plan options to give employees more flexibility based on their financial situation and health needs. Not everyone requires a preferred provider organization plan, Chang pointed out; some may prefer an HDHP with an HSA instead. Employers could also offer telemedicine, pharmacy benefits, and onsite services such as a flu clinic.  

“I have found that telemedicine is playing a really huge role,” she said. “It reduce[s] costs for employees. It eliminates the barriers to get care.” 

For employers looking to significantly reduce long-term health care costs, transitioning to a self-funded health plan may be worth exploring. “It’s been reported that the self-funded health plans can reduce an employer’s cost by anywhere between 7% and 15% annually,” Hopper said. While these plans offer greater transparency and flexibility, before making the switch, “it’s usually recommended that an employer understands the volume and nature of an employee’s health claims over the past few years.” 

Toolkit: Strategies to manage health care costs 

Streamlining Enrollment with AI 

Artificial intelligence can “transform open enrollment” by streamlining the workflow, automating repetitive tasks, and enhancing decision-making and employee engagement, Hopper said. After open enrollment has ended, AI can also help pinpoint which benefits are most popular among employees.  

Hopper also emphasized the importance of educating employees about their options. “Provide them something that’s user-friendly,” such as an app, she said. She also recommended offering employees informative newsletters and step-by-step guides.  

Emerging Benefit Trends 

Looking to the future, Chang predicts there will be more caregiving and support-related benefits on the table. Future employer benefits that will likely come into play include “elder care support, any kind of caregiver leave options, because there are so many generations in the workforce right now,” she said.