Once per year, employers that offer their employees health insurance benefits must review and re-enroll in their plan options. It’s often a time-consuming and stressful process for CEOs, CFOs, and HR professionals everywhere.
If you own a business or manage employee benefits for one, you’re probably familiar with the burden associated with health insurance renewals as rates continue to increase year after year. With markets so volatile, it can be difficult for small and mid-size businesses (SMBs) to predict costs and absorb the financial impacts of across-the-board price increases. COVID-19 is likely to impact this process even further in 2020 and beyond. This can leave business leaders frustrated and without a sense of control over the situation, and it’s often a cause of concern for employees as well.
Navigating the Health Insurance Market
With competition for top talent at an all-time high, offering robust employee benefit packages is pivotal to the success of SMBs focused on growth; and health insurance is often the central decision factor for many employees. According to SHRM, 56% of U.S. adults with employer-sponsored health insurance said that whether or not they like their medical coverage is a key factor in deciding to stay at their current job.
For SMBs that shop the health insurance market independently, renewal rates can be exorbitantly high, making it difficult to offer employees premium medical insurance plan options within budget. This can lead to a disgruntled workforce, especially if the business is left convincing their employees to accept less coverage for higher prices. SMBs may find themselves in an annual loop of increasing their employer contributions while simultaneously passing increased costs onto their employees in the form of higher payroll deductions – a discouraging situation for all sides.
Enlisting the Support of a PEO
Partnering with a PEO may be a more cost-effective option for SMBs looking to control annual health insurance renewal costs. A PEO combines the purchasing power of all its clients to access the best possible group rates for top-tier health insurance plans and other employee benefit options. With the support of the right PEO partner, SMBs can better predict annual price increases and continue to improve their employee benefit offerings each year.
That said, not all PEOs offer the same level of service, so it’s vital to choose a PEO partner with a consistent track record of competitive medical insurance renewal rates. Be sure to ask your PEO about the average year-over-year rate increases for your preferred medical insurance plans over a span of five years or more, and partner with a PEO that can demonstrate a commitment to minimizing costs for their clients. Contact us to learn more about PrestigePEO’s renewal process and rates.
Working with a PEO for employee benefits also helps SMBs save on administrative costs. Implementing smart technology platforms to streamline operations and reduce manual workflows can lead to significant operational benefits and reduced administrative costs over time. Innovative technology also provides a simpler and more intuitive experience for employees and HR managers alike.
It’s never too soon to consider your options for health insurance renewals. Working with a PEO may help your organization reduce costs while offering your employees better coverage. Learn more at www.PrestigePEO.com.