Open Enrollment Communication: How to Explain Benefits So Employees Actually Understand Them

You can pick a great benefits package and still have people choose the wrong plan, skip the 401(k) match, or miss the deadline. Most of the time the problem is not the benefits. It is the explanation. This guide covers what federal rules already say about clear benefits writing, plus simple ways to make your open enrollment messages easier to follow.

Why clear communication matters

Health coverage is a big expense for working families. KFF's 2026 Employer Health Benefits Survey found that workers paid an average of $7,471 a year toward family coverage in 2026, and $9,687 at smaller firms (10 to 199 workers). For workers in a plan with a general annual deductible, the average single-coverage deductible was $1,955 in 2026, and $2,624 at smaller firms.

When the dollars are that large, a confusing message has real costs for your people. A plain one helps them pick the plan that fits.

What the rules already expect

Federal rules already push benefits writing toward plain language. Two documents matter most during open enrollment.

The Summary of Benefits and Coverage (SBC)

Group health plans must give an SBC for each plan option. Under the federal SBC rule (29 CFR 2590.715-2715):

• The SBC goes with the written application materials for enrollment. If there are no written materials, it is due by the first day the employee can enroll.
• If coverage renews automatically, the SBC is due at least 30 days before the new plan year starts.
• It must use a uniform format, be no more than four double-sided pages, and use print no smaller than 12-point.
• It must use "terminology understandable by the average plan enrollee" and be given in a culturally and linguistically appropriate way.

The Department of Labor (DOL) posts SBC templates and a Uniform Glossary of coverage terms. The DOL page also offers translated versions in Chinese, Spanish, Tagalog, and Navajo.

The Summary Plan Description (SPD)

ERISA plans also need an SPD. The DOL rule (29 CFR 2520.102-2) says it must be "written in a manner calculated to be understood by the average plan participant." The rule says this usually means:

• Limiting technical jargon and long, complex sentences
• Using clarifying examples and illustrations
• Using clear cross references and a table of contents

The same rule says restrictions and limits must not be minimized or hidden.

Help in other languages

The SPD rule also covers workers who read only another language:

• Plans with fewer than 100 participants: this applies if 25% or more of participants are literate only in the same non-English language.
• Plans with 100 or more participants: this applies if the lesser of 500 participants or 10% of participants are literate only in the same non-English language.

In those cases, the SPD must include a notice in that language explaining how to get help understanding the plan.

Plain-language habits that work

The federal government's own plain language guidance (now on Digital.gov) says content for the public should be written for its specific audience. The tips below are general good practice. They are not legal requirements.

• Lead with what changed. Put "What's new this year" at the top: new premiums, new plans, new deadlines.
• Use the same words every time. Pick one word, like "deductible," and stick with it. Link to the Uniform Glossary or to a simple word list.
• Show the money in dollars. A table with the paycheck cost and the deductible for each plan beats a paragraph.
• Use short sentences and "you." Write to the employee, not about "the participant."
• Give one clear deadline and one clear action. Say the date, the time, and exactly where to enroll.
• Say what happens if they do nothing. Will their current elections roll over? Will an FSA election stop? People need to know.

A made-up example

This example is made up to show the idea. It is not real data.

Instead of writing:

"Plan B features a $3,000 aggregate deductible with 80/20 coinsurance subsequent to satisfaction thereof."

Try writing:

"With Plan B, you pay the first $3,000 of covered care each year (not counting preventive care). After that, the plan pays 80% and you pay 20%, until you reach your out-of-pocket maximum."

The second version has the same facts. It is just easier to read.

Use more than one channel

People take in information in different ways. Consider mixing these:

• A one-page summary with a cost table
• A short meeting or video, with time for questions
• Printed copies for workers who aren't at a desk
• Reminders as the deadline gets close

These are suggestions based on common practice, not legal rules. Keep the official documents, like the SBC and SPD, available for anyone who wants the full details.

Quick checklist

• SBC for each health plan option, sent on time
• "What's new this year" summary in plain words
• Cost table showing per-paycheck cost and deductible for each plan
• Glossary link for key terms
• Language help where your workforce needs it
• Clear deadline, where to enroll, and what happens if they do nothing
• A named person or team to answer questions