How Do Health Insurance Renewals Work and When Should I Start Preparing For Renewal?
If you already offer employee benefits, you know the year can fly by fast and before you know it, renewal time rolls around. Whether your plan renews in January or sometime during the year, preparing early can help avoid stress and ensure you’re getting the best coverage for your team and your budget.
Most group health plans renew once per year. Your renewal date is often listed on your plan documents, but if you are usure, it is most common for plans to renew every 12 months on the 1st of the month. For example, if you started your plan on February 1, your plan will renew February 1 of the following year.
Even though your plan will usually renew every 12 months, it is important to not wait until the last minute to make plan renewal decisions. Many carriers have deadlines that plan changes must be submitted by, that can vary from 15 – 60 days prior to your renewal.
Because of this, we recommend starting your renewal review 90 days before your renewal date. About 90 days prior to your renewal your agent will receive your renewal documents and should reach out to you with some action steps or to touch base about your needs for the next year.
About 60 days prior to your renewal your agent should have renewal options available for you. This is your chance to look at other plan designs and carriers.
By 30 days prior to your renewal, you should know which plan changes you will or will not be making and you should have Open Enrollment for your employees scheduled.
This proactive approach gives you time to avoid feeling rushed.
Renewals shouldn’t be a headache. Your agent should be handling the heavy lifting for you. If your agent isn’t providing that support, renewal can also be a great opportunity to explore other agents in your area and how they may be able to alleviate some work from your plate. If you are looking for a new agent, Strategic Benefit Partners would love to help you. Please reach out to us to discuss next steps, how we can help, and how we can handle the heavy lifting for you.