In today's business world, company leaders and decision-makers often approach health insurance renewals with trepidation. Many have grown accustomed to the sinking feeling that comes with seeing double-digit rate increases, year after year.
With these rising costs becoming the norm, many businesses have resigned themselves to the idea that this is "just the way it is." However, as a health insurance advisor, I am here to tell you that it doesn't have to be this way.
Before you head into your next renewal meeting, arm yourself with the right questions to challenge the status quo and ensure that you're making the best decisions for your organization.
Here are three key questions you should be asking your health insurance broker during your next renewal meeting:
- How is our health insurance plan performing? You need to understand the value you're getting from your insurance plan. Ask your broker to give you a clear breakdown of the claims against the policy versus the premiums you've been paying. This will give you a clearer picture of how your plan is faring and whether it delivers the expected benefits. It would help if you were sure you're not overpaying for the claims your health insurance company is paying out.
- How are you compensated? With the introduction of new laws around compensation disclosure, it's more crucial than ever to understand how your broker is paid. This is not about doubting their integrity but ensuring transparency in your dealings. When you understand how your broker is compensated, it can clarify whether their recommendations are genuinely in the best interest of your company or influenced by potential commissions or other incentives.
- Are there alternative ways we can fund our health insurance plan to control costs? There are several insurance funding mechanisms available, such as level-funding and self-funding. Even though a broker may dismiss these options, they're still worth considering for your business. Don't settle for being told, "You don't want to do that." Push back. By exploring these avenues, you might find a more cost-effective solution that meets your employees' needs. Challenge your broker's recommendations and ask them to provide clear reasoning behind their suggestions. The world of health insurance is ever-evolving, and while rising costs may seem to be the norm, they don't have to be. By asking the right questions and staying informed, you can ensure that your company is getting the best value and providing your employees with the coverage they need. Don't merely accept the status quo; challenge it and strive for better. Your employees—and your bottom line—will thank you for it.
