{"id":131,"date":"2014-12-08T15:54:56","date_gmt":"2014-12-08T21:54:56","guid":{"rendered":"https:\/\/employcoblog.wordpress.com\/?p=131"},"modified":"2017-12-28T09:06:13","modified_gmt":"2017-12-28T15:06:13","slug":"reviewing-renewal-options","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2014\/12\/08\/reviewing-renewal-options\/","title":{"rendered":"Reviewing Renewal Options"},"content":{"rendered":"

How to approach health benefits plans on a tight budget<\/strong><\/em><\/p>\n

\"Rob<\/p>\n

Rob Wilson<\/b>
\nPresident
\nEmployco USA<\/p>\n

The time to renew health benefits plans\u00a0is upon many businesses. With all the\u00a0cutbacks and troubling economic\u00a0news employers have had to contend with\u00a0lately, the option of varied benefits choices\u00a0is a welcome one. The variety of plan structures\u00a0and additional programs that exist\u00a0allow employers and their employees to\u00a0take greater control of a system where costs\u00a0have historically been experiencing double-digit\u00a0increases for some time now.<\/p>\n

\u201cWhen business owners face a health benefits\u00a0renewal with an increase of 10 percent,\u00a0even 20 percent, what can they do?\u201d says\u00a0Rob Wilson, president of Employco USA.\u00a0\u201cNeither the business owner nor the\u00a0employees have discretionary dollars for\u00a0that now.\u201d<\/p>\n

Smart Business<\/em> asked Wilson about ways\u00a0to lessen the impact of rising benefits costs\u00a0by offering employees more choices.<\/p>\n

How can business owners approach open\u00a0enrollment season?<\/strong><\/p>\n

Employers can decide to absorb premium\u00a0increases if they\u2019re in the financial position\u00a0to do so. If there\u2019s absolutely no room in the\u00a0budget for an increase in premium, they\u00a0may consider passing it along to the employee.\u00a0Another consideration may be to split\u00a0the increase between the employer and\u00a0employee so both parties can shoulder the\u00a0burden.<\/p>\n

Employers can also quote other insurance\u00a0carriers. It is typical in the industry for carriers\u00a0to have different sales strategies,\u00a0depending on where they are in the business\u00a0cycle. Premiums may be higher at certain\u00a0times to increase revenue and lower at\u00a0other times to obtain more market share.\u00a0Since each carrier has its own approach, it\u00a0may be possible to find the same coverage\u00a0at lower premiums if you take the time to\u00a0look. It is a good idea to compare rates with\u00a0different carriers at least once a year.<\/p>\n

What are different plan structures to consider?<\/strong><\/p>\n

It\u2019s always beneficial to consider different\u00a0plan structures whether you\u2019re staying with\u00a0the same carrier or switching. Do a comparison\u00a0between a preferred provider\u00a0organization (PPO) plan and a health maintenance\u00a0organization (HMO) plan or consider\u00a0offering both.<\/p>\n

Conduct a thorough evaluation between\u00a0plans in terms of co-pay, deductible, coinsurance,\u00a0prescription drug card and pick\u00a0the plan that\u2019s best suited for your group and\u00a0budget. You may be able to significantly\u00a0reduce your premiums by increasing your\u00a0deductible, co-pay, co-insurance and\/or prescription\u00a0drug card.<\/p>\n

Keep in mind employers have the option\u00a0to review their policies every year before\u00a0renewal so changes are not permanent and\u00a0may just be for the upcoming year.<\/p>\n

Aside from the traditional PPO and HMO\u00a0<\/strong>plans, are there other non-conventional\u00a0<\/strong>options that can be considered?<\/strong><\/p>\n

The health savings account (HSA) is\u00a0becoming more popular. It\u2019s a high-deductible\u00a0plan, so typically the premium\u00a0would be lower. Other benefits of HSAs are:<\/p>\n