Your Group Health Insurance Renewal Went Up Again. Now What?

You open the email from your insurance broker.

You already know what's coming.

Another increase.

Maybe it's 8%.

Maybe it's 12%.

Maybe it's 20%.

As a business owner, it can feel like you're stuck between two bad choices: absorb the increase and hurt your bottom line or pass more costs on to your employees and risk hurting morale.

If you've ever found yourself wondering, "Isn't there a better way?" you're not alone.

The good news is that your renewal increase doesn't automatically mean you have to accept the status quo.

Why Do Group Health Insurance Rates Keep Increasing?

This is one of the most common questions I hear from employers.

The simple answer is that healthcare costs continue to rise.

Insurance companies are paying more for:

• Hospital services
• Outpatient procedures
• Specialty medications
• Physician services
• Advanced treatments and therapies

At the same time, many employers are seeing increased utilization as employees seek care they may have delayed in previous years.

While claims can play a role in your renewal, they're only one piece of the puzzle. Medical inflation, prescription drug costs, and carrier pricing strategies all contribute to rising premiums.

The Mistake Many Employers Make

After receiving a renewal increase, many employers do exactly what the insurance company hopes they'll do:

Nothing.

They renew the same plan because they're busy running their business.

I understand why.

You have employees to manage, customers to serve, and a hundred other priorities competing for your attention.

But automatically renewing your current plan without exploring alternatives could mean leaving money on the table.

Your Current Plan May Not Be Your Best Option

One of the biggest misconceptions in group health insurance is that every carrier is going up by the same amount.

That's simply not true.

Every insurance company evaluates risk differently.

Every carrier has different provider networks.

Every carrier has different underwriting strategies.

What may be expensive with one carrier could be surprisingly competitive with another.

That's why it often makes sense to compare options before signing your renewal paperwork.

Have You Considered a Level-Funded Health Plan?

Many employers have heard of fully insured health plans because that's what they've always had.

Fewer employers are familiar with level-funded plans.

A level-funded plan is often described as "self-funding on training wheels."

Instead of sending 100% of your premium dollars directly to the insurance company, part of your monthly payment is allocated toward:

• Administrative costs
• Stop-loss protection
• Your group's claims fund

If claims are lower than expected, there may be surplus dollars remaining in the claims fund at the end of the year.

Depending on the carrier and plan design, employers may receive a portion of those unused funds back.

Not every business qualifies for a level-funded plan, and it's not the right solution for every company.

However, many employers are surprised to learn they have options beyond the traditional fully insured model.

Sometimes Better Benefits Cost Less

This is the part that often surprises business owners.

When we review group health plans, we're not only looking at premium costs.

We're also evaluating:

• Provider networks
• Prescription coverage
• Employee contributions
• Out-of-pocket costs
• Funding strategies

In some cases, employers are able to move to a larger network, improve benefits, and still reduce overall costs.

Not always.

But often enough that it's worth exploring.

When Should You Start Reviewing Your Renewal?

The best time to review your options is before you're facing a deadline.

Ideally, employers should begin evaluating alternatives 60 to 90 days before their renewal date.

This provides time to:

• Gather employee census information
• Review current benefits
• Explore multiple carriers
• Evaluate level-funded opportunities
• Compare pricing and networks

Waiting until the last minute can limit your options and create unnecessary stress.

What Should Your Broker Be Doing?

A broker should be more than a messenger delivering bad news.

When your renewal arrives, your broker should be helping you understand:

• Why the increase occurred
• Whether the increase is reasonable
• What alternatives exist
• Whether different carriers were evaluated
• Whether level-funded plans are available
• Whether changes could improve employee satisfaction

If your renewal conversation lasts five minutes and ends with "Here's your increase," you may not be getting the guidance you deserve.

How Mere Benefits Helps Employers

At Mere Benefits, we believe employers deserve to understand their options.

Our role is to help businesses evaluate their current benefits strategy, compare alternatives, and make informed decisions based on their goals.

We work with employers to review:

• Fully insured health plans
• Level-funded health plans
• Employee benefit strategies
• Ancillary benefits
• Cost containment opportunities
• Network and coverage considerations

Most importantly, we explain everything in plain English.

No confusing insurance jargon.

No pressure.

Just clear guidance designed to help you make the best decision for your business and your employees.

Before You Accept Another Renewal Increase

If your group health insurance renewal has increased, don't assume your only option is to sign the paperwork and move on.

You may have alternatives.

You may have opportunities to improve benefits.

You may even have opportunities to reduce costs.

The only way to know is to take a closer look.

If you'd like a second opinion on your current group health plan, Mere Benefits offers no-obligation reviews for employers who want to better understand their options.

Sometimes we confirm that your current plan is still the best choice.

Sometimes we uncover opportunities you didn't know existed.

Either way, you'll walk away with more information and more confidence in your decision.

Frequently Asked Questions

Why did my group health insurance renewal increase?

Renewal increases are typically driven by a combination of healthcare inflation, prescription drug costs, claims experience, provider costs, and carrier pricing strategies.

Should I shop my group health insurance every year?

While you don't necessarily need to switch plans every year, it's a good idea to review your options regularly to ensure your current plan remains competitive.

What is a level-funded health plan?

A level-funded health plan combines features of traditional insurance and self-funding. Employers pay a fixed monthly amount while potentially benefiting from favorable claims experience.

Can a small business qualify for a level-funded plan?

Many can. Eligibility depends on factors such as group size, demographics, and underwriting requirements. Not every group qualifies, but it's worth exploring.

How early should I start reviewing my renewal?

Most employers should begin reviewing their options 60 to 90 days before renewal.

Does it cost anything to have Mere Benefits review our plan?

No. We offer no-obligation consultations to help employers better understand their group health insurance options and determine whether alternative strategies may be available.