America's Benefit Specialist August-September 2022

SUCCESSFUL RENEWALS

this can be avoided by working with a team committed to their success. START EARLY Employers and brokers should always be on the same team, working toward the same goal. Both the employer and employees deserve a smooth and educational renewal, especially after these past few years. A broker will be able to establish a timeline that will help employers feel more in control of the process. Be aware of all paperwork deadlines that apply. Then work backward to build a timeline that will include open enrollment meeting, market analysis and time for education (the em ployer’s education, that is.) At that time, a census typically can be sent out for quotes. Additionally, the bro kerage community will be able to discuss trends and help set expectations. In order to experience the best possible renewal, brokers should encourage their cli ents to start their renewal process 90 days in advance of the renewal date. It is important to be in touch with clients, by phone or by email, to kick off the process. SHOP THE MARKET This is also the time to consider the ele ments of the plans offered to employees. Take a look at the different plans available compare the increase in risk or out-of pocket expenses to any potential premium savings. Each employer should have the plan they want versus the plan they have always had. Once the insurance companies deliver their quotes, an apples-to-apples compari son should be made. Remember, not all of the insurance companies will offer the exact same plans. Knowing that, comparing the plans that are “most similar” is the appro priate strategy. It will be easy to determine which of the insurance companies is offer ing the best coverage at the lowest cost. Exploring what other insurance com panies may offer begins with preparing a census that will be shared with the insur

MAKE IT A PART OF THE RENEWAL PROCESS TO PARTICIPATE IN AND REVIEW RESULTS FROM BUSINESS HEALTH INSURANCE SURVEYS. THEY AREN’T VERY HARD TO FIND.

ance market. This document must include each of the employees’ names, date of birth, gender and home ZIP Code. The same information must be provided for any spouses or dependents that will be covered. An updated census is a good thing to have ready before beginning the renewal process. OFFER MULTIPLE PLANS A multiple-plan strategy need not cost the employer more. Different cost-sharing programs are allowable, even encouraged, when there is more than one plan option. Each employee has different needs and priorities when it comes to health insurance because everyone accesses care differently. Some employees are only concerned with the cost paycheck to paycheck. Others will report that the out-of-pocket expenses are their primary concern and that they might be willing to pay more for a more compre hensive coverage. The employer does not have to decide for them. Many are not aware that most insurance companies allow businesses, even small businesses, to offer more than one health plan at a time. Some companies actually offer three or four different plan choices. SOLVING THE COST-SHARING PUZZLE Health insurance premiums have become age-rated, or they will become so soon. As such, the age-old percentage-based cost sharing calculation may no longer suit an employer’s needs. The problem with that approach is obvious: Older people will have

to pay more than the younger people. Many employers express that they are uncomfort able with this situation and that they aren’t aware they have options. There is a significant amount of data collected every year that can help a business examine and rework their cost-sharing arrangement. Make it a part of the renewal process to participate in and review results from business health insurance surveys. They aren’t very hard to find. Creating a “cost to participate” can solve this particular problem, but it requires bro kers to help employers change the way they think about health insurance costs. Instead of looking at the actual monthly cost for each employee, brokers should encourage employers to seek the average cost per em ployee. This one small change in thinking will help small businesses find new and creative solutions on the cost-sharing front. CONDUCTING MEANINGFUL OPEN-ENROLLMENT MEETINGS The goal of an open-enrollment meeting is to ensure that all employees receive a com prehensive overview of the benefits offered. This overview will enable employees to make informed decisions on what is best for themselves and their families. The open-enrollment period is usually held annually and occurs for the 30 days prior to the policy renewal. During this time employees can enroll, change plans, add dependents and make other changes. Remember that outside the open-enrollment

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