The Issue
When a client with a little over 65 employees received a 32% increase in their health insurance premiums last year, they assumed the only choice they had was to reduce the level of employee coverage and have us shop their program to other carriers.
Our Solution
Although shopping their coverage to other carriers was certainly an option, we wanted to meet with the client first to ask some questions and try to equip ourselves for more effective negotiations. When we did, we discovered that an employee with a major health claim had since left the company and another employee’s covered spouse had incurred significant claims prior to passing away. In both situations, the claims experience incurred would not necessarily repeat since neither person was in the employer’s claims pool any longer. We brought this information to the carrier and appealed the renewal.
The Result
After several discussions and a few weeks, the carrier agreed to reduce the renewal by over 50% and issued just a 12% increase. We still shopped the case with other carriers, but with no significant savings elsewhere, the client remained with their incumbent carrier. By reducing their increase from 32% to 12%, we saved the client $133,000.
We never accept a carrier’s increase without questioning the client first to inquire about any situations that might enable us to negotiate a better rate. With our experience, we know the things a carrier will look at in order to entertain a renewal modification. Contact us now so we can help you too!