Whether you’ve gone through health insurance renewals before, or it’s your first time going through the process, there’s always something new to consider during this period.
During renewals, health insurance providers assess your policy and determine the appropriate pricing plan for the following year. Health insurance companies renew plans annually.
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As an employer, you’ll receive new pricing for plans and decide whether to renew your current plan selections, or to update your selections and/or your company’s contributions. If you’re already offering health insurance, you must go through renewals (even if it means choosing to no longer offer benefits). But if you consider renewals as an opportunity, this event has some perks.
Here’s how you can use renewals to your advantage:
Reassess Your Company's Benefits Offering
A lot can change in a year, especially if you have a growing company. Take a look at how your employee group size has changed, including the demographics of your employees. It may well be time to make some updates to your employee benefits package.
Do you have more parents working who would be interested in comprehensive family benefits? What about the number of employees you’ve had go from part-time to full-time? If you raised another round of funding, or are trying to be more cost-conscious, this is the best time to reassess your company’s needs with your current budget in mind.
Find Better Coverage Options
Renewals provide a chance for you to see what’s changed in the past year — and what’s new. Insurance carriers often update plans, giving you fresh options to choose from. You might be able to afford to offer your team access to richer plans or more budget-friendly options.
Although ancillary benefits are not a part of health insurance renewals, this period provides a good opportunity to consider those options as well. Since you’re already looking at your budget, why not take the time to review the other employee benefits you could include in your company’s package? You may find you’re ready to offer additional benefits, like 401(k), life insurance, or perks like discounted gym memberships or bike share.
Update Company Benefits to Meet Demand
Perhaps the most significant part of renewals is the ability to give your employees more of what they want. Prime health insurance and employee benefits are a great retention and recruitment tool that allows you to be competitive and win the talent war.
Guide Employees in Their Decision-making
Renewals are also an opportunity for your employees to reevaluate their needs and pick a different plan from your offerings, or sign on for the first time if they opted out before.
Barring a “qualifying life event” such as the birth or death of a child, marriage, or divorce, your employees will have to stick with the health insurance options they chose for the current plan year. Be an advocate for their health and wellness by pointing them to resources that can help them choose the right plan for them and their families.
Communicate Timelines Early
The renewals period is a great time to let your employees know that open enrollment is coming up and what that’ll mean for their health insurance options. Educating your employees on any plan changes will help them prepare for the process and allow them to have a successful enrollment period. Keeping your employees prepared and having an open dialogue about the enrollment process is a great way to ensure a positive experience.
Follow the Law
Rules and regulations around health insurance change regularly. Even though it’s not always a painless process, health insurance renewals are necessary to ensure plans are up to date and compliant with current rules.
If you’re a Justworks customer, we’ll spell out all the options for you, and you’ll also be able to renew online, paper-free. If you’re not yet a customer, learn more about the benefits of accessing health insurance through Justworks.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.