Most employee benefits contracts span a 12-month period, aligning with either the calendar year (January 1-December 31) or another cycle based on your last open enrollment. As many groups renew in the fourth or first quarters, now’s the time to gear up for renewal, whether it’s just around the corner or a bit down the road. Check out these renewal tips to stay ahead of the game and make the most of your benefits.
Plan Ahead
Whether you are working on your own – directly with an insurance company – or with an employee benefits broker, you want to plan for your renewal at least two to three months in advance. Many insurers send renewal notices four to six weeks before your scheduled renewal date. Starting early can help smooth the renewal process, especially if you’re considering a change in coverage or insurer.
We recommend you consider these questions ahead of your renewal:
- Have you asked for employee feedback on their health care needs? Are they happy with what you’re offering?
- Have your needs or employees’ needs changed since last year? If so, a full market comparison of plans might be a good idea.
- Have you received notification of a planned premium increase? If so, you may want to reconsider your existing coverage. Moving to a different insurer or plan type could offer you savings.
- What’s been your experience with your current insurer, health plan, and broker (if you’re using one)? When you needed help in the past year did you get it? Were you happy with the results? If not, it may be time to explore different options.
If you’re not using a broker, did you know you can get help from one at no added cost? Some business owners and individuals don’t realize that broker support is offered for free in most situations. Using a broker could even save you money. That’s because your broker will have valuable insights about the plans, provider networks, and coverage available in your area – and may be able to find you a program that delivers more at a lower cost.
Next Steps
In your renewal conversation with a broker, be sure to discuss:
- Your current employee roster, including birth dates and home ZIP Codes, as well as information about dependents, if any, to be insured.
- A comparison of your current Group Medical plan to possible alternatives (including consideration of a switch to a private exchange, level funding, etc.) – and the costs associated with each.
- Preferred provider network(s) associated with all plans being considered (current and/or new).
- Prescription drug needs: discuss how prescriptions are currently covered (or not) by each of the plans you’re considered (including current vs. new).
- Budget available for renewal or replacement of your employees’ coverage. Will your contribution to employees’ coverage be approximately the same as last year? Or do you expect to contribute less – or more? After an average 7.5% increase in premiums for 2024, industry analysts at PwC are predicting slightly higher increases for 2025.
- Possible coverage additions – e.g., adding Dental, Vision, Disability, Life, or other products (including Worksite Voluntary coverage).
- What employee communications are planned? Will the insurer, broker, or employer prepare them? What’s the approval process before materials are distributed to employees?
- What paperwork is needed to maintain current coverage, change plan(s), and/or add new coverage?
- What are the deadlines for completion/submission to the insurance carrier or administrator? You and your broker can “work backwards” to create your complete enrollment calendar.
- Will your group’s open enrollment be in-person (with or without enroller or broker assistance), online (with or without assistance), managed by your HR or other staff, or handled in another way? Maybe email?
- How much time do you want to allow employees to complete their benefits enrollment? If no in-person open enrollment meeting is planned, how will employees be able to get answers to their questions? Is there a toll-free number planned or needed?
- What Wellness or other benefits are available to employees and enrolled dependents? Are they offered at little or no cost to your group?
- What value-added benefits are available from your selected insurer or benefits administrator.
Help from your insurance broker does not end with open enrollment. A broker works to ensure all your paperwork is completed, accurate, and returned on time.
If your renewal isn’t processed on schedule, you risk not having new or renewal coverage when your current coverage ends. This could mean you and your employees would need to pay out of pocket for treatment or pay both the premium for new coverage and any premium needed to extend your current coverage for another month (or more).
The renewal process involves planning, preparation, and open discussions. Choosing the right broker can help make it go smoothly.If you don’t have a current broker, we make it easy to find one.