If you're like most Indiana employers, you probably assume your health insurance must renew on January 1. It makes sense—this is when most businesses handle their benefits renewal, and changing course mid-year can feel complicated or even impossible.
But what many business owners don’t realize is that you're not actually locked into that January 1 timeline. In fact, waiting until next January to address your health insurance needs could be costing you money, limiting your options, and forcing you into rushed decisions that don’t serve your company’s best interests.
Why You’re Not Locked into January 1
While you don’t necessarily need to be locked into your health insurance by January 1, it has become the default renewal date for many employers for a few reasons. For starters, it’s simply the way the industry has worked for decades. When everyone around you is renewing at the same time, it’s easy to assume that’s how it has to be.
Many employers also stick to their current plan anniversary because it feels easier than changing anything mid-year. Shifting your renewal date can seem like a daunting process with forms to complete, employees to notify, and administrative steps to manage. And in many cases, business owners assume it’s their only option because no one—often not even a previous broker—ever mentioned alternatives.
However, just because that’s the way it’s typically done doesn’t mean it’s your only option.
The Risks of Simply Sticking with a January 1 Renewal Date
Waiting until January to review or adjust your health insurance can carry real risks. If your current plan underperforms or your rates continue to rise, staying on the January timeline means you may be stuck with unfavorable terms for months. During that time, you could be paying more than necessary while better options are available.
There’s also the budgeting challenge. When your renewal date doesn’t align with your company’s fiscal year, projecting healthcare costs becomes unnecessarily complicated. This misalignment can force you into evaluating options during peak business periods instead of when you actually have the capacity to make thoughtful decisions.
Plus, the end-of-year renewal window is notoriously hectic. Brokers juggle dozens of clients, carriers process massive volumes of applications, and employers are managing holiday schedules—all of which make it harder to explore options thoroughly and avoid rushed or default renewals.
Off-Cycle Renewals Explained
To avoid these risks and better align your renewal with your business’s needs, you can choose to do an off-cycle renewal. “Off-cycle” simply means beginning a new plan year at a different time—such as April 1, July 1, or October 1—to better align with your organization's needs.
This flexibility allows you to match your benefits renewal to your company's fiscal year, time changes strategically when it makes business sense, and avoid being rushed into poor decisions during a tight renewal window.
Planning Stays the Same
With off-cycle renewals, the timeline itself doesn’t change. No matter when your plan renews, smart employers begin preparing 90 to 120 days before the renewal date. Doing this early preparation when you actually have time to dedicate towards it allows you to fully evaluate whether sticking with your current plan or switching to a better one is the right move.
Working With a New Broker Mid-Year
Additionally, many business owners don't realize they can engage a new broker mid-year while maintaining their existing health plan until the current plan anniversary. This approach gives you ample time to evaluate all your options well before your next renewal deadline, ensuring you make informed decisions without pressure.
Your new benefits consultant can review your current situation, identify opportunities for improvement, and prepare a comprehensive strategy for your next renewal—whether that's in a few months or nearly a year away.
Compliance Requirements Still Apply
Of course, mid-year changes do come with compliance requirements. Federal regulations under the Affordable Care Act (ACA) and ERISA require employers to give employees 60 days’ advance notice before implementing plan changes.
You’ll also need to review your current plan documents for any contractual obligations to avoid penalties. Updated Plan Documents, Summaries of Benefits and Coverage, and other employee materials must be provided within 210 days of the plan year.
Ultimately, you have far more control over your health insurance timeline than you might think. If your current plan isn’t supporting your company, if rates are rising, or if a January 1 renewal simply doesn’t fit your business, you don’t have to wait for next year. An off-cycle move can help you save money, reduce stress, and give you the time and space to make informed, strategic decisions about your employee benefits.
If you still need off-cycle renewals explained, reach out to an experienced benefits advisor. They can help ensure you understand all of your options, meet requirements, and make the shift smoothly.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.