Busting the January Myth for Group Benefits

If you're a small business owner, you've probably heard that health insurance plans can only start in January. It's a common myth, after all, the TV commercials and online ads make it sound like Open Enrollment can only happen at the end of the year. This myth is one that stops many businesses from exploring great benefit options throughout the year.

Here’s the truth: you can start a group health plan, as well as many other group benefits like dental and vision, any time of year. In most cases, your plan can begin as soon as the first day of the following month.

Where did the January-only idea come from?

It likely stems from the world of individual health insurance and was compounded by the Affordable Care Act, where the Open Enrollment Period happens once a year, typically in the fall, for coverage starting January 1. But group health insurance works differently.

When you're offering coverage through a group plan, you’re not locked into that same schedule. Instead, small businesses can choose a start date that fits their needs, timelines, and budget.

Why this flexibility matters:

• Start when you’re ready: Whether you’ve just hired your first employee or are expanding your team, you don’t have to wait months to offer coverage.

• Stay competitive: Benefits are a huge factor in attracting and retaining talent. If you’re waiting until January, you could be losing out.

• Tax advantages sooner: Offering a qualified group health plan may open the door to tax benefits you can start using right away.

How does it work?

Most insurance carriers allow businesses to begin coverage on the first day of any month, some even allow coverage to begin on the 15th of the month. That means if you start the paperwork now, you could have a plan in place by the 1st of next month.

Bottom line:

Don’t let the January myth delay your benefits strategy. If you're a small business owner in Norman, OK and thinking about offering health insurance, now is a great time to explore your options. We’re here to help you get started, no matter the season.