What to Do If You Receive a High Renewal Rate: Five Key Questions to Ask Your Broker
Steve Taylor
Transforming outdated HR with People Strategies that drive growth, boost engagement, and scale success.
Dealing with a large increase in your health plan costs can be frustrating, especially if it goes over 10%. Here are five important questions to ask your broker to help understand and possibly reduce the impact of this increase:
1. What was the carrier's feedback on our account when you discussed the renewal?
Why it’s important: This question helps you understand if your broker engaged with the carrier about your renewal and what insights were gained. It can reveal if there’s room for negotiation or adjustments to your plan.
Example Follow-Up: Did the carrier indicate any specific reasons for the increase? Are there opportunities to negotiate better terms or shift certain plan elements to reduce costs?
2. What area of our health plan should we focus on improving?
Why it’s important: Identifying areas for improvement can help lower future renewal rates. This could involve adjusting plan options or coverage levels to better align with employee needs and reduce costs.
Example Follow-Up: Should we consider increasing in-network options or moving from a silver to a gold or platinum plan to balance premiums and claims more effectively?
3. What services or providers have the highest utilization?
Why it’s important: Understanding which services or providers your employees use the most can highlight where costs are being driven up and where potential adjustments could be made.
Example Follow-Up: Are there specific hospitals or providers that are driving up costs? Are prescription medications a significant part of our claims?
4. Are there any supplemental products we can use to drive down the insurance claims?
Why it’s important: Supplemental products can help manage high-cost areas like pharmaceuticals, potentially reducing overall claims and leading to better renewal rates.
Example Follow-Up: Can we utilize pharmacy discount cards or third-party vendors to manage high-tier drug costs more effectively? Are there supplemental insurance options that could cover certain high-cost treatments?
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5. Can we set up a call directly with the carrier to discuss our employee feedback surveys and how can we better educate them on the services that the carrier provides?
Why it’s important: Direct communication with the carrier can help address specific concerns and enhance understanding of available benefits. Employee education can lead to better utilization of cost-effective services.
Example Follow-Up: Can we arrange a session where the carrier explains their services, such as telehealth and customer support, to our employees? How can we ensure our employees are fully utilizing the available resources to minimize unnecessary claims?
Summary
Facing a high renewal rate can be challenging, but asking these key questions can provide clarity and potentially open avenues to mitigate the impact. Engaging proactively with your broker and carrier, understanding utilization patterns, and exploring supplemental options are essential steps to manage your health plan costs effectively. If you have further questions or need assistance, feel free to schedule a strategy session with us at Thinq HR & Insurance Services. We're here to help you navigate these complexities and find the best solutions for your organization.
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Data is powerful and absolutely necessary. Especially post pandemic honeymoon as we all transition to normal trends. It’s too bad this data isn’t shared for small groups by carriers.