August 25, 2022
The stretch between April and November is, understandably, one of the most popular times for companies to renew their group health plans. There’s no real science to account for this. It’s simply a matter of timing, and something that can be attributed back to the month when they first began offering health insurance benefits to their full-time employees.
But with countless companies feeling the pressure of do-it-or-lose-it group health plan renewal deadlines, coupled with some very concerning carrier-initiated premium increases, HR professionals from every conceivable industry have found themselves in a real bind. Do you mindlessly renew the existing plan? Pick something cheap and chalk it up to cost-savings? Or choose randomly, based on little more than the appropriated budget?
Whether you’re in the process of renewing your company’s employee health benefits, or all-too-aware that the deadline is fast approaching, the team at Premier Financial Insurance wanted to shed some light on some of the most common mistakes companies make when renewing their group healthcare plan.
Automatically Renewing Their Plan Because They’re Too Busy to Review It
Not taking time to review the specifics of your group plan renewal is unquestionably one of the most costly mistakes any company can make, that is, when it comes to employee health insurance. Not only can it affect the quality of coverage that your staff has access to, it can moreover result in premium increases that cut deep into revenues throughout the entire year.
Not Utilizing Combination Plans for Medicare and Subsidy-eligible Employees
Many businesses are unaware that there are a wide range of coverage options for employees who fall into specific demographics, with two of the most notable being age and income. Enrolling employees who are over 65 into Medicare plans, while exploring subsidy options for those with lower salaries can both help keep premiums more affordable.
Waiting Until the Absolute Last Minute to Begin the Plan Renewal Process
It’s easy to put off the process of renewing the company’s health plan, but waiting until the days before the deadline can be costly. Too often, decisions are made in a rush, and this can result in selecting a plan that’s not aligned with the realistic healthcare needs of the staff, or choosing one that’s beyond what the company has budgeted. Starting the process early allows for ample time to compare plans, review claim trends or consult with an agent.
Failing to Have Their Group Health Insurance Plan Benchmarked Annually
A group plan benchmark assessment is something typically done by health insurance agents who specialize in groups, and involves conducting an objective, side-by-side comparison of your plan with what other similar companies in the area are providing. It can provide key information on areas of over- and under-coverage, claim data, and other relevant factors.
Not Working with an Group Health Agent, or Working with the Wrong Agent
Renewing a group health plan has become insanely complicated over the past decade, and it’s not uncommon for HR professionals to find themselves overwhelmed. This often results in mistakes and oversights that can be tricky to correct. Working with an honest, experienced agent eliminates this, while expediting the entire process and ensuring that premiums are more manageable.
Learn More About the Best Ways to Renew Your Group Health Plan
If you’re an Illinois business facing an upcoming employee health insurance renewal and want to make the process as streamlined and affordable as possible, the experts at Premier Financial Insurance in Lisle are here to help. We’ve been helping businesses with new health plans and renewals since 2003, and there are no fees for our group services.
To learn more about how to get the most from your employee health plan renewal or to talk with one of our licensed staff agents, get in touch with Premier today. We can be reached by phone at 800-369-0287 or via email through our website’s secure contact page.