Make the Most of Your Benefits Renewal to Improve Coverage and Cut Costs

Providing quality medical insurance is a critical part of a successful employee retention and recruitment strategy. But offering competitive benefits plans can also come with a significant cost for small and mid-sized businesses. 

While there are several strategies to help business owners manage healthcare costs, one opportunity comes around annually – during your benefits renewals. 

Prior to your renewal date each year, your insurance carrier will notify you of any upcoming changes to rates, coverage, and/or premiums. With the right approach, you can utilize this renewal period to maximize benefits and manage costs effectively. 

Here are three tips to help you get the most of out of your renewal:

1. Start early. Don’t wait until your benefits renewal date to begin thinking about next year’s plans. Begin the process approximately two to three months before your renewal date to allow ample time to research and explore options. Otherwise, you may be more apt to accept rate increases for your current plan – which quickly adds up over time.

2. Review your current plan(s). Analyze your current plan’s performance, such as costs, scope of coverage, and employee usage. Consider asking your employees to provide feedback on affordability, coverage, and ease of finding in-network providers. This will give you valuable insight into whether current plans are meeting your employees’ needs.

3. Explore options. If you’re working independently to find plans, consider engaging a third party. One option is a benefits broker, who will research plans on your behalf. Another option is a professional employer organization (PEO), which utilizes economies of scale to negotiate Fortune 500-level employee benefits for small and mid-sized businesses. G&A Partners is a broker-friendly PEO that will work with you and your broker to provide the best benefits and HR solutions.