Why Now Is the Time to Rethink Your Employee Health Insurance Strategy

Traditional group health insurance has been the standard option for most employers. But today, companies are recognizing this model isn't effective, not for their employees, and not for their finances.

The Annual Renewal Cycle

Each year, the pattern repeats. Your renewal arrives with an 8-12% increase (sometimes 50%), and the carrier calls it a "normal adjustment." When you consider alternatives, they suddenly offer a reduced rate.

This raises a question: Why didn't they offer their best rate initially?

This negotiation isn't structured for your benefit. Even after negotiating, you're still forced into making trade-offs:

• Increasing employee deductibles
• Raising employee premium contributions
• Reducing coverage options

Without clear information, you can't track where your money goes or why costs increase annually.

Why Mid-Year Planning Makes Sense

Mid-year is an effective time to evaluate your health insurance strategy:

1. Time for analysis - Starting now gives you months to examine options without pressure during renewal season
2. Position for negotiations - Exploring alternatives now puts you in a stronger position when renewal discussions begin
3. Develop a transition plan - Changing models requires communication—starting mid-year provides time for your team to understand changes
4. Data collection - The coming months offer opportunity to gather information about your current plan usage

Alternative Health Plan Models

Companies are moving toward models like self-funding and group captives. These approaches allow you to:

• See where your healthcare dollars go
• Create benefits that fit your team's needs
• Recover unspent claims dollars instead of giving them to an insurance carrier

Companies that make this change often see renewal increases of only 4% without reducing coverage.

The Capital Group Benefits Approach

Capital Group Benefits creates solutions that work for both employees and company finances. Since 2000, we've developed coverage options that address client needs.

Our process ensures benefits packages fit your company requirements:

1. Meet - We listen to your needs and develop a benefits package that supports your goals
2. Analysis - We examine your current benefits and apply best practices
3. Tools - We provide systems that simplify enrollments
4. Implement - We support open enrollment through in-person, virtual, or phone meetings
5. Service - We work as an extension of your HR team, providing ongoing support for enrollments and claim issues

Consider Your Options Now

Don't wait for another increase. Start planning now to build a more effective strategy.

Our team can help you navigate options and find a solution that works for your employees and budget.

Contact Capital Group Benefits today to learn how you can take control of your health insurance costs.