What is the purpose of open enrollment (OEP)?

Open enrollment is a designated period during which individuals can make changes to their healthcare benefit plans. This may include enrolling in a new plan, switching between existing plans, or making adjustments to their coverage options. The importance of open enrollment lies in its structured timing, allowing employees to review their healthcare needs and choose the best options available to them for the upcoming year or period.

This period is significant because, outside of open enrollment, employees typically face restrictions on their ability to change their benefit plans unless they experience a qualifying life event, such as marriage, birth of a child, or loss of other coverage. Therefore, the purpose of open enrollment directly aligns with the answer regarding the opportunity for employees to change their benefit plan effectively.