Health insurance renewals are arriving, and figuring out your options can feel overwhelming. Premiums are rising, options are changing, and it’s not always clear whether your current plan is still the best fit. Before signing on the dotted line, consider these five critical questions to protect your employees and your budget.
1. How much is the renewal increase, and what are the year-two risks?
Renewals of 30% to 50% have become common. Understanding not only the current increase but also potential costs in the following year is essential. Level-funded plans, for example, may appear cheaper in year one, but claims experience can drive unexpected rate spikes in year two.
2. Are deductible credits applied correctly?
Deductible credits can offset costs, especially if employees have spent money on medical care earlier in the year. Make sure your plan applies these credits accurately. Missing or misapplied credits can increase out-of-pocket expenses and affect employee satisfaction.
3. Does the network provide the access your employees need?
Network choice isn’t just about cost. It directly impacts employee experience. Check whether your plan covers the hospitals, primary care physicians, and specialists your employees rely on. A plan with a limited network may seem cheaper but can frustrate employees who have to travel or pay more for care outside the network.
4. How does the service model affect your experience?
Local carriers often provide hands-on support, while national carriers may offer broader options but less personalized service. Consider how quickly you can get answers, how claims are handled, and what level of guidance your employees will receive. Service differences can have a major impact on your administrative workload and employee satisfaction.
5. Is there a rate guarantee, and for how long?
Some plans lock in rates for 12 months, while others offer multi-year guarantees. A longer rate guarantee provides stability, reduces surprises at renewal, and allows you to plan your budget with confidence. Always ask about the terms and conditions of any guarantee.
As a small-business owner, taking the time to ask the right questions before signing your renewal can save money, reduce surprises, and protect your employees’ access to care. Understanding renewal increases, deductible credits, network access, service differences, and rate guarantees gives you the clarity you need and the opportunity to find a different plan that works better for your business and employees.
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.