Health insurance is one of the most important benefits you offer as an employer. It supports your team’s well-being, helps you stay competitive in the job market, and represents a major part of your annual budget. However, the renewal process can be complex, time-consuming, and, if not handled strategically, expensive. While many businesses renew their health plans in January, many others are on off-cycle renewals throughout the year. Regardless of your timeline, the fundamentals of a successful renewal process are the same.
In this guide, we’ll walk you through how to prepare for your health care renewal, what to consider at each stage of the process, and how to make strategic decisions that support your business and your employees. While this process can be painful and daunting, GMS has built a better way to simplify and streamline your health care renewal.
Why Health Care Renewals Matter
Rising health care costs and a competitive labor market make benefits decisions more important than ever. According to the Kaiser Family Foundation, average annual premiums for employer-sponsored family health insurance was $25,572. This represents a 7% increase from the previous year and is the second consecutive year with a 7% rise. On average, workers contributed $6,296 towards the cost of family coverage, while employers covered the remaining portion.
Renewals are your annual opportunity to reassess that investment. Do your current offerings still align with your budget, workforce needs, and business goals? Are there more cost-effective or attractive options available?
A well-planned renewal process helps you:
- Control premium costs
- Improve plan design
- Boost employee satisfaction and retention
- Ensure compliance with regulations
When Should You Start the Renewal Process?
The benefits renewal process should ideally begin six months before your renewal date, whether that’s in January or any other month. A thoughtful, phased approach allows time for plan evaluation, carrier negotiations, employee education, and smooth implementation.
Here’s a closer look at what to do at each stage:
180 to 120 Days Before Renewal: Set the Foundation
Evaluate Your Broker or Provider
Is your current broker actively bringing you competitive options? Are they proactive about managing costs, staying compliant, and providing strategic guidance? If not, this is a good time to explore new partnerships.
Review Current Plan Performance
Gather data on claims history, plan usage, employee feedback, and overall satisfaction. Analyze what’s working and what isn’t.
Define Your Budget
Project costs for the coming year. Consider employee contributions, company cost-sharing, and potential cost-containment strategies like changing networks or plan types.
Assess Workforce Needs
Has your team grown since your last health care renewal? Are employees asking for more flexibility or different coverage levels? Use employee surveys or HR insights to guide plan design.
120 to 90 Days Before Renewal: Explore Your Options
Compare Plan Options
During this period, your broker or provider should begin presenting new plan options based on your goals and budget. Look at premiums, deductibles, copays, networks, and value-added services.
Consider Supplemental Benefits
If you’re not already offering dental, vision, or mental health benefits, this is a good time to explore bundling options to increase employee value without significantly raising costs.
Develop a Communication Strategy
Start preparing to educate employees about potential policy changes. Clear, consistent communication reduces confusion and improves engagement during open enrollment.
90 to 60 Days Before Renewal: Quote and Evaluate
Submit Data for Quotes
Provide finalized census and plan information so carriers can generate official quotes.
Evaluate Final Options
Compare quotes and weigh your choices against your budget, workforce needs, and strategic goals. Look beyond just premiums, consider long-term value, and plan stability.
Inform Employees Early
To improve participation and employee satisfaction, begin preparing employees for what’s coming. Share timelines, answers to frequently asked questions (FAQs), and who to contact for help.
60 Days or Less: Make Decisions
Make Your Final Selection
Choose your carrier and plan design. Sign all required documents and ensure compliance with any federal or state requirements, including Affordable Care Act (ACA) reporting and Consolidated Omnibus Budget Reconciliation Act (COBRA) rules.
Prepare for Open Enrollment
Finalize employee materials and schedule enrollment meetings or virtual sessions. Ensure HR and management teams are trained to support the process.
Launch Open Enrollment
Make the process as simple and accessible as possible. Provide digital tools, enrollment assistance, and ample time for employees to ask questions and make decisions.
How GMS Can Help
At Group Management Services (GMS), we simplify the health care renewal process with expert support and integrated technology designed to make benefits administration easier, more secure, and more efficient.
When you partner with GMS, you get:
Custom group health plans
We have developed a comprehensive Master Health Plan (MHP), integrating top national and regional voluntary benefits to offer affordable and flexible plan options. GMS is the only certified professional employer organization (CPEO) that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates.
Strategic benefits support
Our benefits experts offer comprehensive guidance on maximizing your plans, ensuring compliance, and navigating ACA regulations. They also provide employee training on plan details and address complex health plan questions. Additionally, our Implementation Specialists work closely with owners and employees to ensure a seamless transition, offering personalized support and assistance throughout the process.
All-in-one HR technology
With GMS Connect, our cloud-based HR platform, you can manage benefits, payroll, and employee records in one secure system.
You do not have to navigate health care renewals alone. GMS makes it easier to manage the entire process while improving the employee experience. By leveraging our collective buying power, diverse coverage options, and comprehensive administrative support, you can significantly lower your group health care premiums while providing your employees with top-tier benefits.
Want help simplifying your next renewal? Contact GMS today and let’s start planning for a healthier, more efficient future for your business.