health insurance renewals

Employee health insurance renewals: what business owners need to know

Placeholder Author Headshot
Jason Polinsky

Account Executive

Most business owners don’t take the time to factor in the fluctuating costs of health insurance renewals. Luckily, we’re here to think ahead for you.

In the past, renewal pricing has been pretty standard across all states and carriers, with an average bump of about 5% or so. Unfortunately since Obamacare, that’s not the case. As of 2017, the total weighted average is up to 11.5% (and that includes Oscar, which started small group pricing in February and is weighted at -3.2%).

These carriers (especially the top of the line carriers) are absolutely crushing their groups on renewal pricing and there’s not much anyone can do about it. If you’re happy with your broker and even more satisfied with your carrier and network of doctors, are you really going to make a switch? No. And the worst part? In year 2, 3, 4 and so on, the renewal rates will only continue to rise.

One solution to avoid renewal pricing is switching carriers. However, people understandably get concerned about switching networks. They want to make sure their prescription pills and specific doctors will still be covered under the new network.

Well, that’s where insurance experts come in handy (hint, hint). We have the knowledge and resources to check if those listed items will still be covered under a new network. Assuming they are, you avoid all renewal pricing and stand to save the percentages listed below.

employee health insurance costs post
The rising cost of employee health insurance renewals

Often brokers are too content to go over different health insurance options with you or suggest methods to avoid increased renewal pricing. Whether it’s switching to a completely different structured health insurance plan within the same network, or switching to a different network as a whole, there are plenty of ways to avoid renewal pricing!

Considering the increase in premiums that have taken place over the last few years, make sure you’re doing your due diligence to avoid paying more money on your company’s health premiums than you should….because, as we all know, it’s an extremely large expense. And if you still have some questions about health insurance, feel free to reach out to our fantastic Account Executives at (646)-854-1058 or shoot an email to info@foundershield.com. We’re here to help!

[vc_btn title=”GET A QUOTE” style=”outline-custom” outline_custom_color=”#ee2524″ outline_custom_hover_background=”#ee2524″ outline_custom_hover_text=”#ffffff” shape=”square” size=”lg” align=”center” link=”url:https%3A%2F%2Fapp.foundershield.com%2Fusers%2Fsign_up|||”]

Related Articles

employee-health-plans
September 28 • Health & Benefits

Choosing the Right Employee Health Plans

Choosing the right employee health plan for a small business or mid-market company is no small task — but we share some tips to help this process feel more seamless.

leave your peo
April 27 • Health & BenefitsRisk Management

Time to Leave Your PEO? How to Transition Smoothly

Mid-market and late-stage companies often outgrow their PEOs. If you’ve thought about saying goodbye to yours, here are a few factors to consider first.

medical underwriting
March 20 • Health & Benefits

How to save money on your group health insurance

Have you ever wondered how you can save money on your group health insurance plan? Ever wanted to find a way around paying those high premiums and save your company money? Well, Igloo Health is here to guide you through the process of medical underwriting in the current marketplace.

What is a BOR
December 20 • Health & Benefits

What is a BOR?

What is a BOR? It’s your “Broker Of Record.” This is an insurance industry term that many people don’t know about, but it could be the most important thing to learn as a business owner. Understanding what a BOR does (and what they can’t do) can give you peace of mind. Have you ever been promised