Pre-Renewal Conversations: Planning Ahead for 2025 Benefits

As we find ourselves in late June and early July, it's hard to believe we're already gearing up for 2025 benefit renewals. While we've just finished a cycle of July 1 renewals, the majority of our clients operate on a calendar year basis. This means it's time to initiate pre-renewal conversations to determine what our clients want to accomplish for the upcoming plan year.

Here are a few things to take into consideration:

Data Analysis and Timing

By mid-July, we typically have access to the first six months of calendar year claims data, allowing us to analyze a rolling twelve-month period. It's crucial to note that underwriters generally "shut down" claims around August, using that twelve-month period to determine renewals. This timeline drives our strategy and planning process.

Early Considerations

For fully insured clients considering a move to self-funding, we've already begun obtaining quotes and aligning necessary information. We're also getting ahead of the game by discussing non-medical benefits like dental, vision, life, disability, and worksite coverage with our partners. By addressing the January 2025 renewal block now, we can beat the underwriter rush and help our clients make informed decisions early.

Plan Design and Funding Decisions

This is the ideal time to consider plan design changes. Some employers are looking to add new health plans, such as HSA-compatible options, and deciding on HSA funding. Others are exploring implementing no-cost care through the Nomi network or pharmacy sourcing. By proactively considering these options, we're prepared with a game plan when the renewal arrives.

Addressing Emerging Challenges

We're also tackling ongoing issues, such as potential abuse of GLP-1 drugs. We're having in-depth conversations with clients about implementing stricter guardrails, such as ensuring patients are on true Type 2 diabetic medications and using glucose monitors and test strips before approving these drugs for weight loss.

Year-Round Process

While the fourth quarter is typically busy with open enrollment coordination and benefits administration setup, this early planning period is crucial. It allows us to have meaningful conversations about what our clients want for the next year and how we can help them achieve those goals.

The benefit planning cycle is truly a year-round process. By starting these pre-renewal conversations now, we can ensure we're well-prepared to meet our clients' needs and navigate the complexities of the ever-changing benefits landscape. It's time to plan and get moving for a successful 2025 benefit year.