Are you tired of consistently experiencing employee benefit renewal increases? Now is the time to get ahead. This period is more than just a time to review costs and coverage; it’s a strategic moment to enhance employee satisfaction and retention. Let’s examine five factors employers should evaluate as they approach renewal.

1. Evaluate Current Benefits Performance

How is your current plan performing? Start by diving into your data — utilization, medical claims, pharmacy claims and more. This data is the foundation for a clear picture of whether your benefits plan is meeting organizational objectives and employee needs. For example, you might find that your generic medication percentage is lower than average, or that employees do not utilize certain wellness programs that may be worth reexamining.

2. Understand Employee Needs and Preferences

Employee demographics and preferences shift over time.  Gather feedback on what employees value most in their benefits package.  Factors to consider include:

• Generational differences
• Family status
• Specific health needs
• Socioeconomic factors
• Rural vs. urban population

The better your organization understands its workforce, the more targeted your benefits strategy can be. This will in turn make it more efficient and cost effective.

3. Benchmark Employee Benefits

How do your benefits compare to your peers? Are each of your vendors and carriers the most cost-competitive option? One way to find out is to conduct regular benchmarking. In the battle for top talent — benefits, and their cost, can be deciding factors. Additionally, use this as an opportunity to discuss new trends in benefits as well as cost-containment innovations.

4. Get A Grip on Claims

Medical and pharmacy claims make up 80% of the average employer’s total spend on benefits. But did you know that a very small percentage of the member population drives the bulk of that cost. Before your employee benefits renewal, it is critical to identify your current high-cost claimants, as well as any future risks on the plan.

With the right clinical experts, there is still time to intervene and find ways to mitigate risks and costs before the renewal hits. They can identify:

• Current and future risk profile
• Opportunities for clinical intervention
• Treatment plan optimizations
• What claims are one-and-done vs ongoing

Having a clinician-backed risk profile has empowered many of our clients to negotiate healthier renewals from carriers.  Click here to learn more.

5. Rely On Your Consultant

Health plan costs don’t have to increase year after year. The world of benefits is complex, with a seemingly endless list of benefits vendors and plan designs to choose from. Your consultant should help you identify the best mix of strategies to ensure your employee benefits strategy meets your bottom-line objectives — without compromising on member care.

How can we help? 

If you’re ready for a second opinion on your benefits program or have other questions, please contact us.