by Holley Maher
Renewing In December Or January
Most employers have group insurance contracts that renew in December or January. That may seem like a long way away, but in less than six months, a letter from the insurance company will arrive, and it will announce rates for the next plan year. That letter begins the dreaded task of analyzing plan changes, budgeting and having open-enrollment communications.
Implementing these three simple tips this spring/summer may save hours of headache during fourth-quarter 2015:
- Plan audit. Not only will the findings serve as a planning guide for renewal but a good audit could reveal tax issues, discrepancies for your highly compensated/key employees and compliance liabilities as well as highlight areas where your plan administrator needs support. Delegating this task to your benefit broker will save you hours of time, and you may even get a free lunch!
- Employee surveys. Today’s work force is more diverse than ever, and thanks to the Affordable Care Act, many employers are facing significant premium increases. The right survey questions will give plan administrators confidence about making the right (perhaps significant) benefit and/or contribution changes.
- Contribution modeling. Much like when retirement plans shifted from defined-benefit to defined-contribution – e.g., 401(k) plans – the days of defined-benefit insurance plans are coming to an end. Employers can no longer afford to wait until the insurance company provides a renewal rate to develop a plan strategy. Defined contribution puts power in the hands of the employer (and employee) and allows an employer to develop and work a budget for multiple years.
Holley Maher (hmaher@SmartBenefitsPlus.com) is a partner at Maher, Rosenheim, Comfort & Tabash LLC, specializing in group and individual insurance.
Submitted 8 years 358 days ago