Open Enrollment Guide for Colorado Small Businesses (2026)

How to Prepare, Communicate, and Maximize Your Benefits Strategy This Year

Open enrollment season is a crucial window for Colorado small businesses to review their benefits offerings, support employees in making informed choices, and stay compliant with regulatory changes. With another year of rising healthcare costs, shifting employee expectations, and changing laws, the 2026 open enrollment period offers both challenges and opportunities.

In this guide, we’ll walk through what’s new for 2026, key dates for Colorado employers, and how to simplify your planning and communication.

What is Open Enrollment?

Open enrollment is the annual window when employees can enroll in, opt out of, or make changes to health insurance and other benefits—without needing a qualifying life event. For most small businesses in Colorado, this period typically occurs between late October and mid-November, with new elections taking effect on January 1, 2026.

Why does open enrollment happen every year?

Due to changing circumstances affecting insurance carriers, employers, and employees, open enrollment occurs annually.

For insurance carriers, open enrollment is critical to ensure their plans comply with new local and federal regulations. Additionally, it provides an opportunity to make necessary adjustments to pricing to account for inflation and to reevaluate potential risks.

For employers, on the other hand, open enrollment provides an opportunity to assess how their organization has evolved over the past year. This evaluation guides them in making pertinent adjustments to their employee benefits offerings. For instance, if there has been an expansion in management layers within the organization during the year, employers may review and adapt their benefit groups and offerings accordingly for the upcoming year.

For employees, open enrollment is a valuable opportunity to reevaluate their needs and preferences. It enables them to select plans and coverage options that align most effectively with their personal and family requirements. During this period, employees can switch plans, including dependents, or opt out as necessary, ensuring that their healthcare choices are tailored to their evolving circumstances.

What’s the Open Enrollment Process Like?

For employers, the open enrollment process comprises several key stages:

1. Insurance Carrier Evaluation: The open enrollment cycle begins with healthcare providers assessing their pricing structures and services and modifying their plan offerings. Factors such as inflation, escalating healthcare expenses, and the introduction of new prescription drugs contribute to adjustments in pricing.
2. Employer Review and Plan Selection: Upon receiving plan options, employers can either renew existing plans if they meet their satisfaction regarding rates and coverage or make alterations to align with changing company needs. Employers can also determine their contributions toward policy costs and employees’ shares.
3. Employee Open Enrollment: Following the employer’s selection of employee benefit offerings, it’s the employees’ turn to choose their health insurance plans and coverage for the upcoming year. They can either renew their current plans or opt for more suitable options based on their circumstances and budget. Additionally, they can select voluntary benefits such as dental or vision plans or Flexible Spending Accounts.
4. Finalization and Start of Coverage: Once employees have completed their selections, they are enrolled in their chosen plans, and coverage commences in accordance with the insurance provider’s specified start date.

What’s New for 2026: Healthcare Costs & Trends in Colorado

Colorado’s small businesses are once again bracing for rising healthcare premiums in 2026. While the rate of increase varies by carrier, the statewide average requested hike for small group plans is 13.6% and will impact approximately 172,000 Coloradans, according to the Colorado Division of Insurance.

Average Requested Rate Increase by Insurance Company

Source: Colorado Division of Insurance

Several key factors are fueling these higher costs:

1. Higher labor costs among healthcare providers
2. Increased utilization of mental health and delayed care services
3. Specialty drug spending, including drugs like Ozempic and other GLP-1s
4. Ongoing hospital and facility expansion across the state
5. The “One Big Beautiful Bill Act” (OBBBA) has increased healthcare premiums by introducing stricter eligibility requirements for ACA and Medicaid, reducing access to premium tax credits, and limiting automatic reenrollment, leading to higher costs for individuals and higher overall premiums for everyone

In addition to rising costs for small group plans, individuals purchasing their own health insurance—roughly 200,000 Coloradans—are expected to face even steeper increases. For the 2026 plan year, individual market premiums are projected to rise by an average of 28% statewide, with some areas, such as the Western Slope, seeing increases as high as 38%.

These regional disparities are often driven by limited competition among carriers, higher medical costs in rural areas, and less negotiating power compared to group plans. Individuals and families shopping on the state exchange will need to review their options carefully and factor in available subsidies to help offset the rising cost of coverage.

Average Requested Rate Increase by Insurance Company

Source:  Colorado Department of Insurance

The Division attributes these above-average increases in part to federal policy changes under President Trump’s tax bill.

While these average increases are substantial, it’s important to note that Obsidian HR clients typically do not experience rate hikes at this level. Through our pooled large-group plans, we offer more stable and competitive pricing. If you’re not yet working with us, now is the time to begin exploring your options. Shopping early gives you time to compare plans, make informed decisions, and avoid getting locked into high renewal rates. We invite you to reach out to learn more about how our benefit services can help your business navigate these changes with confidence.

Don’t Settle for Double-Digit Increases

If you’re seeing projected premium increases of 13.6% or higher, it’s time to reevaluate. Obsidian HR clients typically renew at lower rates, thanks to our pooled purchasing power and expertly negotiated plans. Not a client yet? Now is the time to start shopping. Contact us early to explore our benefit offerings and lock in more competitive pricing before the window closes.

👉 Talk to Our Team about how Obsidian HR can help.

Key Dates for 2026 Open Enrollment in Colorado

As healthcare premiums rise across the state, Colorado businesses and their employees must be ready to navigate the 2026 open enrollment period. This is a critical window to review plan options, communicate changes, and ensure every eligible employee has the information and support they need to make informed decisions. Missing key deadlines could mean delayed coverage or missed opportunities for savings—so planning ahead is essential.

Below is a timeline of key enrollment dates to keep on your radar:

5 Steps to a Smooth Open Enrollment Process

Open enrollment isn’t just a compliance checkbox—it’s a crucial opportunity to support your team, control costs, and stay competitive in Colorado’s evolving healthcare landscape. With rate hikes and new regulations on the horizon for 2026, here’s how to get ahead and make the most of this year’s enrollment window.

1. Review Your Current Benefits and Plan Options

Take a look at last year’s enrollment, employee feedback, and claims data. This is the time to assess:

• What benefits are being used or underutilized
• Which vendors/carriers are offering better rates or services
• How your offerings stack up in a competitive labor market

2. Prepare Legally Required Documents

Ensure your benefit documents are updated and distributed:

• Summary Plan Descriptions (SPDs)
• Summary of Benefits and Coverage (SBCs)
• Annual Notices: HIPAA, CHIPRA, Medicare Part D, WHCRA

Colorado-specific considerations may include compliance with:

• Colorado Healthy Families and Workplaces Act (HFWA)
• Public Health Emergency Whistleblower Law (PHEW)

3. Communicate Early and Often

Start your communication campaign in early October. Use multiple channels:

• Email announcements and reminders
• Printed flyers and posters (if applicable)
• Live or recorded info sessions
• One-on-one HR meetings for complex questions

Bonus Tip: Use visuals or decision support tools to simplify complex plan comparisons.

4. Make Sure Tech and Tools Are Ready

Whether you use a PEO platform or benefits software, verify that:

• Employees know how to access the system
• Systems are tested and working
• Documentation uploads (e.g., dependents) are enabled

5. Track Participation and Follow Up

Don’t assume everyone will complete enrollment on time. Designate someone on your team to:

• Monitor response rates
• Send reminders as the deadline nears
• Offer help to employees with questions or accessibility issues

Why Partnering with a PEO Can Help

Partnering with a PEO like Obsidian HR can help you get ahead of rising healthcare costs and open enrollment complexity. We give Colorado small businesses a competitive advantage by:

• Unlocking access to large-group health plans
• Providing more affordable workers’ compensation coverage
• Handling regulatory compliance
• Managing benefits administration through one platform
• Providing HR experts to support employee education and engagement

Our team helps simplify open enrollment while controlling costs and maximizing your benefit strategy. If you’re navigating this process on your own, now is the time to connect with us.

👉 Talk to Our Team to learn how Obsidian HR can support your 2026 open enrollment.

Let’s Make Open Enrollment Easier This Year

Open enrollment doesn’t have to be stressful. With early planning, clear communication, and the right support, you can turn it into an opportunity to strengthen your team’s trust in your benefits strategy.

Need help navigating open enrollment in Colorado? Contact Obsidian HR to learn how our team can simplify the process for you.