For HR directors reviewing renewal rates year after year, premium fluctuations often seem to emerge from a black box – opaque and inexplicable. Hefty double-digit increases some years get chalked up to “healthcare cost inflation”, while at other times modest single-digit bumps draw sighs of relief. Yet what drives these numbers, and how does pricing compare to what other similar organizations pay? ERB offers transparency, demystifying actual group plan costs.
Peeking Behind the Curtain
Unlike in the consumer insurance market, where carriers publicly post rates aligned to risk models, group plan premiums are shrouded in secrecy. Sales reps may reference “book rates” or an opening offer, but where these numbers come from remains a mystery. As California’s leading independent benefits consultancy, though, ERB leverages long-term carrier relationships granting access to the wholesale cost layers underneath – detailed rate filings, loss models, and risk adjustment exponents all considerably impacting bottom line pricing. Now you can understand the why behind the what.
Apples to Apples
While wholesale access has begun lifting the pricing veil already, tailoring benefit plans identical across providers enables truly objective side-by-side comparisons unavailable otherwise. Using ERB’s proprietary modeling tools, we construct “phantom quotes” mirroring your current coverage networks and employee demographics across top insurance carriers throughout California. Detailed analyses then show deficits or discounts clearly, empowering negotiations by leveraging real market competition. For groups struggling with rapidly rising premiums, such transparency provides critical leverage.
Efficiency Through Scale
In addition to baseline health plan administration expenses factored by carriers, a key yet seldom discussed cost driver remains plan enrollment efficiency. Simply put – signing up more employees lowers everyone’s rates. However, for small groups, driving participation beyond 70-80% often hits engagement barriers. This is where ERB again differentiates through enrollment automation, allowing groups under 50 lives to benefit from scale pricing as if 200+ is large.
While bottom-line premium price tags dominate focus when choosing group health plans, the service experience over the following year proves equally vital. Between cumbersome claims delays, access issues from network gaps or prescribers moving out of coverage, authentication requirements, and more – member headaches abound even in well-rated plans today. As your year-round benefits partner, ERB meticulously tracks these softer performance metrics across all carriers to advise the optimal balance of value, network stability, and user experience, tailoring specifically to your workplace population and locations.
Partnering Beyond the Surface
In a market where opacity often reigns, Employee Retention Benefits lift the veil through wholesale pricing access, comparative quoting, modeling tools, and enrollment efficiency, unlocking advantages for California employers big and small. But our partnership then tracks year-round service metrics, ensuring chosen plans perform beyond the lowest initial premiums. Contact us today to discuss transparent group health plan options benefiting your bottom line while serving your people better.
