1. Key to renewal success: Start early

Marcus Newman ([email protected]), RHU, CBC is vice president, employee benefits at GCG Financial, an Alera Group Company, a leading provider of exceptional employee benefits, risk management and wealth management solutions.

An employer and their broker should always be on the same team — working toward the same goal. Most importantly, an employer should establish a timeline that will help them feel in control of the process. Be aware of all paperwork deadlines that apply. Then, work backward to build a timeline that will include: open enrollment meeting, market analysis and time for education (the employer's education, that is).

At that time a census typically can be sent out for quotes. Additionally, the brokerage community will be able to discuss trends and help set expectations.

In order to experience the best possible renewal, start the process 90 days in advance of the renewal date.

2. Compare all offers

This is also the time to consider the elements of the plans offered to employees. Review different plans available and compare the out-of-pocket expenses to any potential premium savings.

Once the insurance companies deliver their quotes, an "apples to apples" comparison should be made. Remember, not all insurance companies will offer the exact same plans. Knowing that, comparing the plans that are "most similar" is the appropriate strategy. It will be easy to determine which of the insurance companies is offering the best coverage at the lowest cost.

Exploring what other insurance companies may offer begins with preparing a "census" that will be shared with the insurance market. Health insurance is now age rated. This means that every covered individual (including spouses and children) have their own rate based on age. An updated census is a good thing to have ready before beginning the renewal process.

3. Offer multiple plans

A multiple plan strategy need not cost the employer more. Different cost-sharing programs are allowable, even encouraged, when there is more than one plan option.

Each employee has different needs and priorities when it comes to health insurance. Some employees are only concerned with the cost paycheck to paycheck. Others will report that the out-of-pocket expenses are their primary concern and that they might be willing to pay more for more comprehensive coverage. The employer does not have to decide for them. By offering two different plans, the employer can meet each of those needs. Many are not aware that some companies offer three or four different plan choices.

4. Solving the cost-sharing puzzle

Health insurance premiums have become age rated, or they will become so soon. As such, the age-old percentage-based cost-sharing calculation may no longer suit an employer's needs. The problem with that approach is obvious — older people will have to pay more than younger people. Many employers express that they are uncomfortable with this situation; they aren't aware that they have options.

There is a significant amount of data collected every year that a business can utilize to examine and rework their cost-sharing arrangement. Make it a part of the renewal process to participate in and review results from small business health insurance surveys. They aren't very hard to find.

Creating a "cost to participate" can solve this particular problem, but it requires many employers to change the way they think about health insurance costs. Instead of looking at the actual monthly cost for each employee, employers must learn to seek the average cost per employee. This one small change in thinking will help businesses find new and creative solutions on the cost-sharing front.

5. Conduct open enrollment meetings for staff

The goal of an open enrollment meeting is to ensure that all employees receive a comprehensive overview of the benefits offered. This overview will enable employees to make informed decisions on what is best for themselves and their families. Remember that outside the open enrollment period employees can only make changes if they experience a "qualifying event."

The key to a successful open enrollment meeting is communication. An employer should provide enrollment kits to each employee: including summaries of benefits and coverage (SBCs), all employee costs, any necessary paperwork and the required annual disclosure notices. These meetings are a great time to deliver other important company messages as well.