Fun Fridays with POD: Health Benefits: Active vs Passive Enrollment!

Active vs. Passive Enrollment:

Active = Action required (no action = no coverage).

Passive = Action optional (no action = keep what you have).

Active Enrollment

• Definition: Employees are required to log in and make benefit elections during the

open enrollment period.

• What it means for employees:

o You must either choose your benefits or formally decline them.

o If you take no action, you will not have benefits coverage for the new plan

year.

• Why companies use it: Active enrollment ensures every employee reviews their

options, understands any changes, and makes an informed decision.

Passive Enrollment

• Definition: Employees’ current benefits automatically carry over into the new plan

year unless they make changes.

• What it means for employees:

o If you’re happy with your current coverage, you don’t have to do anything.

o You only log in if you want to make a change.

• Why companies use it: Passive enrollment is easier for employees but may cause

them to miss out on new options or cost savings.

The 2026 Benefits Open Enrollment will be an Active Enrollment. This means that every

employee must log into the Paycom app and make a selection—either to enroll in

benefits or to decline them.

If no action is taken, the People Operations Department will be required to follow up and

ensure the employee makes a decision before open enrollment closes.

In contrast, previous years were Passive Enrollment, where employees’ existing benefit elections automatically carried over unless changes were made.