How Are Group Health Insurance Renewal Rates Calculated?

Group Health Insurance Renewal Process

How Are Group Health Insurance Renewal Rates Calculated?


Cost is one of the most important things to navigate when it comes to group health insurance and the associated renewal fees. The best quality group health insurance is more than just cost savings, it’s knowing that your employees are covered should something bad happen. Having insurance helps you to brace for change and has an overwhelmingly positive impact on the mental, physical, and financial health of your team.


The Group Health Insurance Renewal Process


Renewal rates are unavoidable and are determined during the complex underwriting process that insurance companies undertake. The following economic factors determine your rate for the following year.


  • The performance of the health insurance industry determines the prices they’re likely to charge.
  • Plan prices vary on a locational basis and if their plans performed badly in your area, it’s likely that you’ll face a sharp price increase.
  • Government-mandated benefits can lead to an increase in costs for insurance carriers which directly translates to increased costs for consumers.
  • The cost of prescription medication and specialist treatments consistently rises on an annual basis. As such, the cost of insurance rises in line with this.
  • Inflation impacts the price of everything, and health insurance is no different.


There are also factors based solely on your company’s actions that affect your group health insurance renewal cost. The type of plans you offer to your employees is arguably the main impact on your renewal fee. The amount of people you enroll impact its, too. Plan usage is another massive factor as insurance carriers like to ensure they’re collecting enough premiums to cover any expected claims throughout the year.


How We Can Help You Manage Your Renewal Fees


We do our best to help keep your insurance rates as consistent as possible over the years. However, your health insurance renewal rate is really determined by the insurance companies that we work with on your behalf.


Our goal is your long-term success. As such, we work closely with your employees to make sure they use their health insurance in the smartest way possible. During enrolment, we make sure they select the plan that’s right for them and provide them with the resources to use their plans effectively.


Partner with us and we’ll be there every step of the way to ensure you get the best value for your business without sacrificing the wellness of your employees.