How to Reduce Health Insurance Renewal Increase
Beat the Annual Health Insurance Renewal Increase
Every year, your health insurance renewal brings an increase. Most businesses accept it. You do not have to. There are proven ways to reduce or even eliminate your health insurance renewal increase, from market shopping to PEO comparison to plan redesign to rate negotiation. This guide shows you how to beat the increase.
Typical renewal increase if unmanaged
Possible with the right strategy
Ways to beat the increase
To get a renewal increase review
Key Benefits Cost Factors
Shop the Market
Have a broker shop your group across multiple carriers. Competing quotes give you leverage to negotiate your renewal down.
Compare PEO Options
Compare your renewal against PEO Fortune 500 plans. The PEO often offers lower rates and better plans than your renewal.
Redesign the Plan
Adjust deductibles, copays, or metal tier to offset the increase. Small design changes can lower premium without cutting value.
Add Tax Accounts
Pair a higher deductible plan with an HSA to lower premium and give employees tax advantaged savings.
Negotiate
Use competing quotes to negotiate your current carrier down. Carriers will compete when they see you are shopping.
Be Ready to Switch
If your carrier will not compete, switch. The threat of losing your business is what makes negotiation work.
4 Ways to Reduce Your Health Insurance Renewal Increase
There are four proven ways to beat your renewal increase. First, shop the market through a broker to get competing quotes. Second, compare PEO Fortune 500 plans against your renewal. Third, redesign your plan to offset the increase through deductible, copay, or tier changes. Fourth, negotiate using the competing quotes, and be ready to switch if your carrier will not compete. Together, these strategies can reduce or eliminate your renewal increase.
- Shop the market through a broker for competing quotes
- Compare PEO Fortune 500 plans against your renewal
- Redesign your plan to offset the increase
- Negotiate using competing quotes
- Be ready to switch if your carrier will not compete
- Add an HSA to lower premium if you raise the deductible
Why Starting Early Is the Key to Beating the Increase
The single most important factor in beating your renewal increase is starting early. If you start 90 to 120 days before your renewal, your broker has time to shop the market, compare PEO options, and negotiate. If you wait until the last minute, you are forced to accept the default increase. Starting early gives you options, and options give you leverage. The businesses that beat the increase are the ones that start early.
Why Comparing PEO Options Often Beats the Increase Entirely
For many small businesses, comparing PEO options at renewal does more than reduce the increase. It eliminates it. PEO Fortune 500 plans at large group rates are often 15 to 30 percent lower than traditional small group renewals. When you compare your renewal against PEO options, you may find that switching to a PEO gives you better plans at lower cost than staying with your current carrier. A broker can build this comparison at your renewal so you see all your options.
Reduce Renewal Increase FAQ
How can I reduce my health insurance renewal increase?
Can I eliminate my health insurance renewal increase entirely?
When should I start fighting my renewal increase?
Does shopping the market actually lower my renewal?
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