Large employers have more leverage than small employers for three reasons. First, large employers actually get to see their claims data. Secondly, they have more resources available to them. Thirdly, brokers typically take more interest in them.
There are three obstacles that all employers face. The first is the budget. Payroll and benefits are the two biggest expense items for most companies. Benefits continue to go up every year in the double-digit range, creating a problem for most employers. The second obstacle is the open enrollment process and employee communications. Open enrollment has many moving parts where important components run the risk of falling through the cracks. Open enrollment is also a time where employees have many questions. It is a very personal time for employees who want to add dependents or change plans and it is really important that these communications be handled with care. The third major obstacle is time to analyze data and make the best decisions possible relative to the renewal.
To overcome those obstacles, an employer should hire the right broker who will drive the renewal process and all aspects of open enrollment. This should include developing customized communication campaigns and negotiating with carriers to get the absolute best renewal possible in the time that is needed to make the best decisions for you and your company.
