If you feel like Group Health Insurance renewals are hitting harder this year, you’re not imagining it.
Across the market, employers are seeing higher medical costs, increased utilization, rising prescription drug expenses, and carrier increases that are making it increasingly difficult to maintain competitive benefits without passing more of the cost on to employees.
For many businesses, the traditional response has been predictable:
Increase employee contributions.
Raise deductibles.
Reduce benefits.
Or simply absorb another large renewal.
But there may be another option.
A PEO Can Open the Door to a Different Health Insurance Market
One of the biggest reasons companies explore a Professional Employer Organization, or PEO, is access to the PEO's master health insurance plans.
Instead of purchasing benefits solely based on the size and demographics of one individual employer, the business may be able to access medical plans through a much larger PEO population.
That can sometimes create opportunities for:
• More competitive medical premiums
• Access to national carrier options
• Reduced exposure to an individual group's renewal increase
• Additional plan choices for employees
• Greater predictability around future benefit costs
And the opportunity goes well beyond health insurance.
A PEO can also combine payroll, HR support, Workers' Compensation, employee benefits, compliance support, technology, and retirement solutions into one platform.
The Key Is Comparing the Numbers
A PEO isn't automatically going to save every company money.
But when a business is staring at a significant medical renewal, it makes sense to know what alternatives are available before simply accepting the increase.
We've seen employers surprised by how competitive PEO medical plans can be compared with what they were receiving in the traditional Group Health market.
With many companies heading into their fourth-quarter and January renewals, now is the time to explore the market, not after the renewal decision has already been made.
If your company, or one of your clients, is facing a significant Group Health Insurance increase this year, it may be worth seeing what the PEO market has to offer.
Sometimes the best way to negotiate a difficult renewal is to give yourself another door to walk through.
Email us today at Sales@BACbenefits.com or call us at 321-441-9056.