What are health insurance renewals?
Renewals are the time period when your insurance carrier assesses your policy and decides new pricing for the following plan year. The insurance carrier will assess your policy based on your group’s claim history and risk profile, and then will factor in health insurance inflation to determine your new price.
Health insurance plans generally renew annually, regardless of where you have your policy. All medical, dental and vision plans through Justworks will renew on November 1 every year regardless of when your company signed up for health insurance.
Why do renewals happen each year?
Renewals occur annually to allow you to change your plan based on your current needs. You’ll have the opportunity to switch plans, add a dependent, or opt out if needed. You can also keep things the same as they were in the previous year. As an employer, renewals are an opportunity to change your plan portfolio and company contribution.
For insurance carriers, renewals happen annually to make sure plans are up-to-date with rules and regulations, adjust pricing to take into account inflation in the health insurance industry and reassess risk.
Why does my plan renew on November 1?
Your plan renews on November 1, regardless of when you started offering health insurance with Justworks. This is because you are part of Justworks’ master policy with either Aetna or MetLife.
The Justworks master policy makes it possible for your company to get the variety of plans and the pricing you received when you signed up with Justworks. From the carrier’s perspective, your company joined a larger group policy that was already in place and which is set to renew on November 1 every year.
What can I expect during renewals?
An increase to your monthly premium
You can expect to see some increase in the overall cost of plans. Premium increases are based on a couple of things, including how often your group uses their health insurance and the overall inflation in doctor’s fees, health insurance technology and new drugs.
An opportunity to change plans and contribute to meet your company's needs
This is the one time a year when your company can pick new plan options and reset your contributions. If the plans you picked last year no longer make sense for the company you are today, now is the time to make the changes you need.
A fully online and easy to manage process
With Justworks, this plan selection process will all happen online. Once your rates are ready, you will be able to log into Justworks and pick your plans for the upcoming year. We’ll let you know when your plans are ready.
Open enrollment for employees
Renewals are also an opportunity for your employees to pick their plans from scratch. Your employees will be offered all the new plans you select and they too will have a chance to re-evaluate their choices.
This is also a great opportunity for employees who have declined coverage in the past, to join your company program.
Why do prices increase?
Generally, health insurance premiums will increase 8%-12% each year. Premium increases are based on your group’s claim history and risk profile, as well as the inflation of health insurance costs such as the increase in doctor’s fees and new technology and drug development.
How do renewals work in Justworks?
To make the renewals process as streamlined and pain-free as possible, you can select your plan, choose your contributions and waiting periods all online through Justworks. But, if you need to talk to a human, our wonderful support team will be available to help.
How do my employees enroll?
Once you have selected your plans and finalized your contribution for your company, your employees will go through an open enrollment period where they can choose their individual plans and coverage tier (employee, employee+spouse, etc). This process will also happen online through Justworks.
Why can't I choose the same plan I have now?
The plans your company selected last year may no longer be available this year. However, we will be offering a wider selection of plans in your area, and have plans that closely resemble the options you had.
How to prepare for renewals
Over the next few weeks, there are a few actions you can take to prepare for renewals.
Understand your employee needs and pain points around existing plans.
Talk to your employees about what they would like to see in their health insurance plans to help you make an educated decision. Employees might have specific needs such as lower premiums, or lower deductibles, out-of-network coverage and so on. Getting this feedback early guarantees your employees will have the best experience possible with their health insurance.
Match your needs to the available plan options
After you’ve identified your priorities in a plan, you can evaluate the portfolio of existing plans to assess which ones best meet your needs. During this time, our team will be available over phone, chat and email to discuss any questions you might have.
Prepare a budget
A significant part of health insurance renewals is deciding how much your company would like to spend on health insurance. Creating a budget prior to seeing your rates will help you decide which plans make sense and how much you’d like to cover for each employee.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.