At renewal time, should I shop out my plan for the best deal?

The joys of renewal time; when the temptation to shop around for a new plan can be oh-so-alluring. But before you dive headfirst into the world of comparison shopping, let’s take a moment to consider why sticking to your current plan might actually be the smarter move.

First things first, let’s talk stability. Switching benefits plans every time renewal season rolls around can introduce a whole lot of uncertainty into the mix. Employees might find themselves wondering if their favourite healthcare providers will still be covered, while employers could be left scratching their heads over how changes to the plan will impact their bottom line.

When it comes to cost, it’s important to understand that claims generally cost the same across plans, because the amount you claim for reimbursement remains consistent regardless of the specific plan you’re enrolled in.

Whether it’s for medical services, prescriptions, or other covered expenses, the claim amount remains the same across different benefits packages – no new provider can offer a lower rate for the same amount of claims. Additionally, marketing discounts are generally built into the first year of any plan, so any “savings” are lost upon renewal, so a whole new plan likely isn’t cheaper, and any proposed savings are not sustainable.

Shopping around for a new benefits plan can also eat up a ton of precious time. I mean, who has hours to spare scouring the countless options for the perfect plan? And let’s not forget about the hassle factor. Adjusting to a new plan every year can be a real headache for plan administrators, business owners, and even employees with all the paperwork, new procedures, and changes to get used to.

Speaking of headaches, let’s talk about employee satisfaction. Your benefits plan plays a big role in employee satisfaction. Constantly switching plans can leave them feeling unsettled and unsure about their future, their family’s health, as well as their finances. having to switch healthcare providers and navigate new coverage options every year can be a real pain for them and their families.

Now, don’t get me wrong – I’m not saying you should stick with the same benefits plan forever. It’s important to review your plan regularly to make sure it’s still meeting the needs of your employees and your business. But before you start shopping around for a new plan at renewal time, take a moment to consider the potential issues. Stability, time, cost, and employee satisfaction are all important factors to weigh when making this decision.

It’s important to ensure that your plan advisor is negotiating the best rates for your plan. Your advisor can play a pivotal role in securing favourable rates from insurance providers, ensuring that you receive the most value for your investment. By leveraging their expertise, they can better negotiate terms that align with your organization’s needs.

Additionally, having a benefits plan with good built-in features is essential for providing comprehensive coverage and meeting the diverse needs of your employees. This includes features such as extended healthcare coverage, wellness programs, and flexible spending accounts.

While it might be tempting to go on the hunt for a new benefit plan every year, sticking with what you know might just be the smartest choice in the long run. The grass isn’t always greener on the other side – it might just look like it is.