Hey brokers, I have a secret insight for you. Most employers hate their annual benefits renewal. Which means there’s a good chance many of your clients dread their renewal every year.
I realize that’s a pretty provocative thing to say, and I’m certainly not here to tell you that you suck at your job. But I’ve talked to hundreds of CFOs, CEOs and HR reps, and I hear the same things over and over.
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“I dread my annual renewal even more than I dread tax season.”
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“The renewal process is so complex and frustrating. “
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“I never feel confident in the plan decision I make.”
With renewal season in full swing, that may not be the news you wanted to hear. However, I’m not writing to point out negatives; I’m writing to share solutions. Many leading brokers have transformed their renewal process to align with clients’ want and needs—and you can too. Here are three ways to make sure your clients are satisfied with their next renewal.
1. Ditch spreadsheets
No one likes spreadsheets. They’re hard to decipher and hard to read when printed out. It’s nearly impossible to compare plans side-by-side with so much data crammed in. If you want to tweak a plan (such as change a copay or deductible), you must create a new spreadsheet and schedule another meeting. Spreadsheets are just plain overwhelming.
I realize that the “binder and spreadsheet” method is how brokers have presented benefits renewals for decades, but we are in a modern age, with superior options available. Employers today want to see plan options visually, so they can clearly understand their options and compare plans side-by-side.
2. Offer creative plan options
It’s common for employers to keep similar plans year-to-year. The broker might present a few alternatives, and they may tweak the premium share or add an HSA. But if there isn’t much cost difference, the employer generally opts for the status quo to keep life simpler for employees.
However, with health care costs continuing to climb, some brokers are going farther than just shopping a few plan options for a better rate. For example, you may want to consider self-funding for clients who never have before, or get more creative with premium share, HSAs/HRAs and other factors.
3. Start with the budget
This may seem like a radical approach, but I encourage brokers to start renewal conversations with a budget established, and then work within that budget. Why? Because traditionally, only total plan cost is mentioned up-front, and premium share isn’t discussed until after a plan is chosen. That is extremely frustrating for employers and makes choosing the right plan difficult.
Instead, establish a budget with your client first. (For instance, it may not be reasonable to keep costs flat, but maybe you decide together to target nothing more than a 2 percent increase.) From there, you explore plan options, integrating premium share into the conversation from the start.
This strategy fits hand-in-hand with offering creative plan options, because to start with a budget in mind, you often need to get creative. If you’re feeling skeptical, think about all the plans available from different carriers, then all the ways to include an HRA or HSA, then different ways to apply premium share. Plan design options become virtually unlimited when you approach the conversation this way.
As you prepare for your upcoming renewals, consider these strategies. Your clients will love you for enhancing a formerly frustrating process, and will reward you with loyalty and retention.
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