Insurance Renewals: Here’s Why They’re Necessary For Your Company

Posted August 8, 2018 by Justworks in Keeping Compliant
It’s that time of year again. Insurance renewals may feel like a pain, but they can actually be an opportunity for your company as well. Learn more.

Whether you’ve gone through insurance renewals before or it’s your first time, there’s always something new to consider during this period.

During renewals, health insurance providers assess your policy and determine the appropriate pricing plans for the following year. Health insurance companies renew plans annually.

Psst... Want more guidance around this whole renewals process? Download our free ebook for help Understanding Renewals From A to Z.

As an employer, you’ll receive new pricing plans and decide whether to renew your current plan or to select new benefits. If you’re already offering health insurance, the renewals process is not optional. But if you consider renewals as an opportunity, this event has some perks.

Here’s how you can use renewals to your advantage.

Get the guide on health insurance renewals, including a helpful employee benefits survey.

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Reassess Your Company’s Employee Benefit Needs

A lot can change in a year, especially if you have a growing company. Take a look at how your employee group size has changed, including the demographics of your employees. It may well be time to make some updates to your employee benefits package.

Do you have more parents working who would be interested in comprehensive family benefits? What about the number of employees you’ve had go from part-time to full-time? If you raised another round of funding, or are trying to be more austere, this is the best time to reassess your company’s needs with your current budget in mind.

...and Allow Employees to Do the Same

Barring a “qualifying event” such as the birth or death of a child, marriage, or divorce, your employees will have to stick with the health insurance options they chose for the current plan year.

Renewals are also an opportunity for your employees to reevaluate their needs and pick a different plan from your offerings, or sign on for the first time if they opted out before.

Renewals are also an opportunity for your employees to reevaluate their needs and pick a different plan.

Find Better Coverage Options

Renewals provides a chance for you to see what’s changed and what’s new in the past year. Insurance carriers often update plans, giving you fresh options to choose from. You might be able to afford to offer your team access to richer plans.

Although ancillary benefits are not a part of insurance renewals, this period offers a good time to consider those options as well. Since you’re already looking at your budget, why not take the time to review the other employee benefits you could include in your company’s package? You may find you’re ready to offer additional benefits, like 401(k) or life insurance, or perks like discounted gym memberships or bike share.

Related Article: 15 Ways to Promote Workplace Wellness on a Budget

Leverage Insurance Renewals as a Tool

Perhaps the most significant part of renewals is the ability to give your employees more of what they want. Prime health insurance and employee benefits are a great retention and recruitment tool that allows you to be competitive and win the talent war.

Follow the Law

Rules and regulations in the health insurance market change regularly. Even though it’s not always a painless process, insurance renewals are necessary to ensure plans are compliant.

If you’re a Justworks customer, we’ll spell out all the options for you, and you’ll also be able to renew online, paper free.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.