The 18% to 10% "Win" That's Actually a Loss

Your broker calls with good news: they negotiated your renewal down from 18% to 10%. Time to celebrate, right?

Here's the thing: your premiums still went up by 10%. Your deductibles likely increased. Your network may have narrowed. And your employees are paying more while getting less.

Next year, you'll probably be right back here, starting the whole process over again.

Why This Approach Falls Short

Most brokers work hard to shop your plan across carriers and find the best available rates. It's a well-intentioned effort.

But even when they succeed in reducing a proposed increase, the underlying issue remains: healthcare costs keep climbing, and the insurance model stays the same.

A Different Approach

Real cost management comes from changing how healthcare gets used in the first place.

Here's what that can look like:

Start with your data.Understanding what's driving your claims gives you a clear picture of where changes can make a difference.

• Are employees going to the ER for non-emergencies?

• Using high-cost specialists when primary care would work?

• Purchasing medications that could be sourced at a much lower price?

  
  

The answers in your claims data show you where to focus.

Design benefits around good care.Instead of accepting standard plan designs, you can build benefits that guide employees toward high-quality, lower-cost care.

• Zero-cost primary care visits

• Direct contracts with local providers

• Connections to centers of excellence for major procedures

  
  

All of these help employees get better care while managing costs.

Give employees real support.Most people don't know what care costs or where to get the best value. When they have someone to walk them through their options and handle the details, they make better choices.

Better choices lead to lower claims, and lower claims lead to stable premiums.

Build for the long term.The annual renewal process is reactive by nature. A thoughtful approach means stepping back, seeing what's happening with your plan, and creating systems that address what's actually driving costs up.

What This Can Look Like

Instead of celebrating a smaller increase, picture this:

Your premiums stay stable.

Your employees have zero deductibles and copays for the care they need.

When someone has a procedure coming up, they get help finding a high-quality provider at a fair price, which saves money for everyone.

This happens when you design benefits around helping employees get the care they need without financial stress.

A Better Question

The question isn't just whether you can negotiate a smaller rate increase. It's whether there's a better way to approach benefits altogether.

If the current approach keeps producing the same results year after year, it might be worth considering a different path forward.