Preparing for your December or January Renewal

If you are a small business with benefits that renew in December or January, the calendar is quietly closing in on you. Those renewal dates may feel far off, especially for those of us in Oklahoma where the temps are still in the 90’s most days. But, the work you do now can help you prepare both your business and your employees for renewal time, so you don’t feel the stress as the holidays draw near. Don’t be one of the many employers who wait until the last minute and then must accept what the carrier offers simply because time has run out.

Carriers generally release renewal rates somewhere between 60 and 90 days before a plan's anniversary date, although the exact timing varies by carrier. Your broker should already have your renewal in had if you renew on December 1 and may even have January 1 renewals ready to look at too.

The following steps can help you to prepare for your renewal and be ready when your agent calls to discuss options.

1.      Confirm your renewal date and any deadlines tied to that date. Many carriers require changes to be submitted a certain number of days before the renewal occurs; often 15 – 30 days prior.

2.      Update your employee census. If you have had major changes with your staff knowing that can help your agent not only prepare for your renewal but make sure you don’t have any terminated employees still lingering on your invoices.

3.      Review how your plan was actually used in the past year. Did employees have concerns they brought to you? Were you unhappy with the deductible? Did the carrier drop your favorite provider? Utilization reports are not often available for small groups but talking to your staff can often give valuable insight into how they like to use the plan.

4.      Think about your budget and contribution strategy. Some carriers have minimum contribution requirements so consider how those may factor into increasing premiums.

5.      Check your current participation in plans. If you have a plan with low participation, it may be worth considering if you’d like to continue offering that plan.

6.      Set a timeline for enrollment. Even having a general idea of when you would like Open Enrollment to occur can help your agent. After all, the early bird gets the worm!

7.      Do not skip reviewing benefits that may not seem as important as health insurance. Things like dental, vision, life insurance, and other supplemental benefits can have cost increases associated with them as well. It is important to not forget about these options and figure into how any premium increases may affect employees or other benefit offerings.

A benefits renewal does not have to be stressful. With a little preparation and an early start, you can walk into the end of the year knowing your coverage is set, your budget is protected and your employees understand their benefits. If you are not sure where your group stands, reach out to your broker today and ask for your renewal timeline. A short conversation now can save a great deal of time and worry later.