The new year is fast approaching. For many businesses, that means their employer-sponsored healthcare plan is up for renewal. Oftentimes, if the current plan is sufficient for employees’ needs, they will renew it and move on.
However, there is no harm in going over your healthcare plan before renewing it. In doing so, you may find that another option would be better for your business. Here are four reasons why you should review your employer-sponsored healthcare plan:
- You May Find A Better Rate
Healthcare laws are changing constantly, so in turn, insurance companies are always evolving. What was once the most cost-effective plan may no longer be the best one for your current circumstances. In fact, employer-sponsored healthcare costs are on the rise. So take the time to get quotes from a variety of potential partners. In doing so, not only will you be able to lower your monthly premiums, but your employees will also save on their monthly premiums and deductibles.
- You May Find Better Coverage
We all know that insurance plans are limited. They only accommodate in-network doctors, certain procedures, and specific areas in the country.
Those limitations can cause a lot of problems for your employees. They drive up out-of-pocket healthcare expenses and prevent your staff from getting full and adequate coverage for their needs. This can lead to significant long-term issues if not addressed. If you shop around, you may discover that there is a plan offering more coverage than your current one.
- You May Incur A Loyalty Penalty
Many businesses think that sticking with the same insurer year after year can help them save money. What happens is often the opposite. People who stay with one insurance company for a long time may end up with a loyalty penalty. This is the yearly premium increase that eventually stacks up to create a costlier health insurance plan. Although that is not always the case, it is important for you to know about it so you can avoid it.
- There Are Newer Options
Because of rising healthcare costs, insurance companies have come up with strategies to help businesses manage those expenses. One of the most popular is self-funded insurance. This is a plan where instead of paying a monthly premium, employers cover the direct out-of-pocket costs themselves. This model saves businesses a lot of money and provides their staff with higher-quality coverage. Looking into some of these newer insurance plans will allow you to invest in a better solution.
Those are just some of the reasons you should review your health insurance policy before you renew it this year. At National Insurance Partners, we can help you assess your current employer-sponsored health insurance policy. Visit National Insurance Partners today, and then give us a call. We would be happy to show you the various options available to you so you can find the right plan for all of your employees.