Company Health Insurance Increase
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Company Health Insurance Increase
I am responsible for our company health insurance renewal. It is going up 30% this year- not good. For anyone knowledgeable in this area I do have a question. On the paperwork from our insurance broker it lists 2 lines: proposed increase % and accepted increase %.
That indicates to me that there is some room for negotiation in the increase %. Is that correct?
That indicates to me that there is some room for negotiation in the increase %. Is that correct?
Re: Company Health Insurance Increase
Depends on the size of the group. Over 100 employees you can negotiate sometimes, under 100 you generally can't. The line might be there so the company can gauge what benefit changes you may be willing to accept to get to the number on the sheet.
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Re: Company Health Insurance Increase
We are a group of about 25, so definitely not near 100.
Re: Company Health Insurance Increase
Small group rates are pretty much set in stone, can't negotiate them. Has your agent shopped the rates with other companies?
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Re: Company Health Insurance Increase
Yes, but I don't trust him. He told me years ago that there are different commission amounts for different insurance carriers so they are incented to have you with certain carriers.
We got our renewal #s yesterday and have to make a decision within 10 days. I can see right on the paperwork from BCBS that it was sent to them 1.5 months ago. I think that was a ploy to wait so we don't have a chance to shop around.
Whole process is very frustrating...
We got our renewal #s yesterday and have to make a decision within 10 days. I can see right on the paperwork from BCBS that it was sent to them 1.5 months ago. I think that was a ploy to wait so we don't have a chance to shop around.
Whole process is very frustrating...
- Don Christy
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Re: Company Health Insurance Increase
Definitely shop it. Some markets have quite a bit of variability, with different carriers trying to grow share each year.
“Speak only if it improves upon the silence." Mahatma Gandhi
Re: Company Health Insurance Increase
There are varying commissions between companies but they are going to be relatively similar and a good agent will do what's best for the client regardless of the commission. After all, it's better to keep the group and earn a lower commission than to lose the group altogether. Might be time for a new agent if you don't trust them.soccerdad12 wrote:Yes, but I don't trust him. He told me years ago that there are different commission amounts for different insurance carriers so they are incented to have you with certain carriers.
We got our renewal #s yesterday and have to make a decision within 10 days. I can see right on the paperwork from BCBS that it was sent to them 1.5 months ago. I think that was a ploy to wait so we don't have a chance to shop around.
Whole process is very frustrating...
Re: Company Health Insurance Increase
Pricing changes for employee benefits like health insurance shouldn't be a surprise. Every fall they happen like clockwork with notifications to those impacted often in October. To be prepared start shopping around in at least August so you've got some negotiating time.
Fool me once, shame on you. Fool me twice, shame on me.
Fool me once, shame on you. Fool me twice, shame on me.
The closest helping hand is at the end of your own arm.
Re: Company Health Insurance Increase
Believe it or not, I actually had one group get a 3% decrease! Incredible.123 wrote:Pricing changes for employee benefits like health insurance shouldn't be a surprise. Every fall they happen like clockwork with notifications to those impacted often in October. To be prepared start shopping around in at least August so you've got some negotiating time.
Fool me once, shame on you. Fool me twice, shame on me.
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Re: Company Health Insurance Increase
Is your current plan through the SHOP marketplace? If not, why not go to the SHOP marketplace and "shop" for plans to compare with the plan you have been presented.
Also, have you utilized the small plan credit?
Also, have you utilized the small plan credit?
Re: Company Health Insurance Increase
SHOP is about as user-unfriendly as it gets, I don't even know a single agent that actually sells on SHOP, and I can't think of any companies that sell through SHOP that aren't available outside of it.Spirit Rider wrote:Is your current plan through the SHOP marketplace? If not, why not go to the SHOP marketplace and "shop" for plans to compare with the plan you have been presented.
Also, have you utilized the small plan credit?
The small business credit only works for groups with low average income, is relatively complicated, and from what I have heard from several sources, it almost fully guarantees that the group gets audited by the IRS. Input from an agent whose spouse is a CPA:
The tax credit is an audit magnet. National stats say that 100% of them are audited by the IRS.
And it's a culdesac. Massive form, crazy rules. Tax credit goes down as average salary goes up. Lots of moving parts to the rules.
Every single one that I tried ended up in the client paying more to his Accountant to fill out the IRS form than they got back in tax credit. A huge number qualified, but got a grand $0.
There is only 1 type of client that ever really gets the tax credit. It's what ABC said - very low average income worker. Here's the bite, though. When you get done with the whole stupid tax credit, and find that this employer has a small enough group, with a low enough average wage, with acceptable Employer contribution, and acceptable participation...... the client doesn't buy group health insurance anyway. Why? Because businesses with low-average wage earners don't intend to spend money on their employees' health insurance. The employer thought the govt was going to shell out most of the money, and didn't realize that the tax credit requires the employer to shovel out some money in employer contribution too.
Your idea of lowering cost for the owner is great, except that this tax credit excludes the owner and any family member of an owner.
Not worth it. Ever. 100% total bust as far as I'm concerned.
But, nevermind me. I'm just married to an accountant, and worked on, oh, about 40 of these stupid things before I said, "Nope".
Re: Company Health Insurance Increase
I would switch agents immediately if the agent sat on the rates for 45 days leaving you 10 to decide. Like they would be out before the opening bell tomorrow.BruDude wrote:There are varying commissions between companies but they are going to be relatively similar and a good agent will do what's best for the client regardless of the commission. After all, it's better to keep the group and earn a lower commission than to lose the group altogether. Might be time for a new agent if you don't trust them.soccerdad12 wrote:Yes, but I don't trust him. He told me years ago that there are different commission amounts for different insurance carriers so they are incented to have you with certain carriers.
We got our renewal #s yesterday and have to make a decision within 10 days. I can see right on the paperwork from BCBS that it was sent to them 1.5 months ago. I think that was a ploy to wait so we don't have a chance to shop around.
Whole process is very frustrating...
Re: Company Health Insurance Increase
Can't speak for this agent and the insurance company, but some of the insurance companies I work with generate a renewal 60 days in advance of the renewal and then I somehow don't get it until 20 days before. It happens...could be the agent, could be the insurance company. I just received two group renewals in the mail last week that were incorrectly mailed to my old address about a month ago. I haven't lived at that address in five years and they had my correct address on file too, but somehow the system generated it to the old one. Even if the group has to decide on a renewal now, they can always shop and switch to another company later. Might not be ideal, but if the rates are significantly lower the employees might not complain much about the switch.fpr4 wrote:I would switch agents immediately if the agent sat on the rates for 45 days leaving you 10 to decide. Like they would be out before the opening bell tomorrow.BruDude wrote:There are varying commissions between companies but they are going to be relatively similar and a good agent will do what's best for the client regardless of the commission. After all, it's better to keep the group and earn a lower commission than to lose the group altogether. Might be time for a new agent if you don't trust them.soccerdad12 wrote:Yes, but I don't trust him. He told me years ago that there are different commission amounts for different insurance carriers so they are incented to have you with certain carriers.
We got our renewal #s yesterday and have to make a decision within 10 days. I can see right on the paperwork from BCBS that it was sent to them 1.5 months ago. I think that was a ploy to wait so we don't have a chance to shop around.
Whole process is very frustrating...