For insured plans, the three biggest factors that feed into your renewal rate are:
- Your organization’s claims experience
- Your insurance company’s trend factor
- Your insurance company’s administrative expenses
Accompass’s annual Guide to Insurer Health Trends captures the average group insurer health trend factor for 2018 as well as other factors that feed into an organization’s renewal rate.
What’s your organization’s claims experience, and do you measure this year-over-year? Did you see an unusual spike in a specific claim in the last year? This might affect your renewal rate. In addition, your organization’s demographics and administrative costs will play a role.
During financial reviews of your plan evaluate your provider’s factor in relation to your organization’s own experience – does it seem appropriate? Determine this with your advisor and consider what steps (if any) you can take to decrease your own trend factor.
For more information download the full Guide here.