How to Get the Most Out of Your Renewal This Year
It’s that time of the year again! Renewal season is upon us and we want to make sure you’re receiving the best service and support possible.
Dozens of questions are probably running through your mind: Where does my renewal come from? Why did I receive an increase? What can I do to manage costs?
No worries, we have the answers.
When it comes to renewals, there are two main considerations when it comes to evaluating cost increases. The first consideration is the claims experience of your group. As an employer, it is important to remember that even if nobody comes into work with a cast on their arm or leg, your plan is utilized throughout the year by employees and any dependents they cover. This usage can cause an increase year over year when paired with the second concept. The second consideration is “trend,” or what the insurance companies designate the cost of care to year over year. Due to increasing prices of services, the insurance company needs to collect more in premium.
While your agent works with the insurance carrier to get you the best rates possible, there are some steps you can take to facilitate the renewal and ensure you’re receiving the best possible plan at the best possible cost. To prepare for your renewal, begin taking a look at how your plan is working for you before you receive the percentage increase. How do your employees feel about the plan? Is it being utilized to its full extent? Are my employees asking for more options? Consider surveying your employees about the positives and negatives that they have experienced with the plan. Taking these proactive steps may help you get a head start on shopping or changing your plan design for January 1.
There are also some steps you can take to put cost saving measures in place. For example, offering a dual option, adding an HRA, or shifting benefits to keep the package affordable for your business are great ways to save on costs. You can also limit year-over-year increases by avoiding the “cheapest” option and, rather, finding the plan that best suits your situation. For example, level-funded products provide some reporting and the opportunity to earn money back. Investing in a quality healthcare plan for your business will show dividends year over year come renewal time.
When it comes to your renewal, your ARC representative will advocate for you and your employees. Contact us today with any questions.