For employers with December 1 or January 1 benefit renewals, fall is an important time to review health insurance and other employee benefits. Renewal season can bring difficult decisions about rising premiums, coverage changes, and how to balance company costs with employees’ needs.
One common challenge is knowing whether the renewal presented by a benefits broker is the best available option. Reviewing a renewal should not be limited to looking at the new premium and deciding whether to accept it. It is also an opportunity to ask questions, compare plans, and consider alternatives.
Look Beyond the Premium
When reviewing benefit renewals, employers should consider more than the monthly cost. Deductibles, copays, coinsurance, and out-of-pocket maximums all affect what employees ultimately pay for care.
For example, a plan with a lower premium may come with higher out-of-pocket costs. Another plan might offer 0% coinsurance but have a higher premium. Understanding these trade-offs helps employers evaluate which options make the most sense for their organization and workforce.
It’s also worth reviewing benefits beyond medical insurance. Dental coverage, disability insurance, and life insurance may offer opportunities to improve an employee benefits package or address gaps in existing coverage.
Ask Questions and Explore Alternatives
Benefits brokers play an important role in helping employers navigate the renewal process, but employers should feel comfortable asking for additional options and comparisons. A renewal recommendation is a starting point for a conversation, not necessarily the only choice.
Useful questions to ask include:
- What alternative plans are available, and how do their costs compare?
- Are there options that could reduce employees’ out-of-pocket expenses?
- How would changes in deductibles, copays, or coinsurance affect employees?
- Are our current dental, disability, and life insurance benefits still meeting our needs?
- What trade-offs should we consider before selecting a plan?
The Value of an HR Partner
For small businesses without an internal HR department, evaluating these options can be especially challenging. Having someone who understands the employer’s needs and can work alongside the benefits broker helps ensure the decision-making process considers more than the initial recommendation.
At HR Synergy, we work with our clients and their brokers during renewal season to review available plans, ask questions, and explore alternatives. Our focus is on helping employers understand their options and make informed decisions that balance business budgets with employee needs.
Open enrollment is an opportunity to take a closer look at your benefits, not just renew what you already have. Taking the time to compare options and ask the right questions can help you make more informed decisions for the year ahead.