Author: Ted Stevenot

A health insurance renewal crossed my desk this week with a 28% increase.

That’s never welcome news.

The easy assumption is that another insurance company must have a better answer.

That wasn’t where I started.

The goal of Broker’s Desk is to explain how experienced brokers evaluate real-world situations—not to suggest there is one right answer for every employer.

The first thing I did was compare the renewal with other plan options from the same carrier. This is the same approach I describe in our Health Insurance Renewal System.

Before looking outside the current plan, I wanted to answer a simple question.

Could we reduce the increase without asking employees to learn an entirely new plan or provider network?

Here’s an anonymized comparison of the renewal and one alternative we evaluated before looking outside the current carrier.

Benefit	Renewal Plan	Option A
Individual Deductible	$3,400	$3,400
Family Deductible	$6,800	$6,800
Coinsurance	100%	80%
Individual Out-of-Pocket Maximum	$7,000	$7,000
Family Out-of-Pocket Maximum	$14,000	$14,000
Office Visit Primary/Specialist	100% after deductible	80% after deductible
Prescription Drugs	Level 1 Rx after deductible	Level 1 Rx after deductible
Estimated Monthly Medical Premium	$1,115.30 (+28.05%)	$964.02 (+10.8%)

An anonymized comparison showing how a modest coinsurance change affected the renewal increase while keeping the same deductible.

One option kept the deductible the same while introducing 80/20 coinsurance.

That one change reduced the projected increase from 28% to approximately 11%.

The employer may still decide to look at other options.

That’s perfectly reasonable.

The difference is that we’re making that decision after understanding what the current carrier has to offer, not before.

Instead of reacting to a 28% increase, they’re looking at an increase that’s much closer to 10%.

I wasn’t trying to decide whether another carrier had a better answer yet. First I wanted to understand what the current carrier could offer.

I was trying to understand whether shopping was necessary.

Sometimes a modest change to the current plan solves the problem.

Sometimes it doesn’t.

If it doesn’t—or if there’s reason to believe another carrier starts from a fundamentally different place—that’s when a health insurance prescreen becomes valuable. At that point, we’re comparing alternatives from a position of understanding instead of reacting to the first number we saw.

We’ll see where this employer ultimately decides to go.

At a Glance

• A large health insurance renewal doesn’t automatically require changing carriers.
• Compare available options before assuming the market has a better answer.
• Small plan changes can sometimes substantially reduce an increase.
• Shopping the market is one option—not the first step.
• Understanding the renewal leads to better decisions.

Frequently Asked Questions

Should I always change carriers after a health insurance renewal?

Not necessarily. Sometimes your current carrier offers alternative plans that reduce the increase while preserving much of your existing coverage.

Why compare plans from the same carrier first?

It helps determine whether a modest plan adjustment can solve the problem before introducing the additional disruption of changing carriers.

When does a health insurance prescreen make sense?

A prescreen becomes especially valuable when reasonable adjustments to the current plan don’t produce an acceptable result or when an employer wants to evaluate broader market options.

About the Author

For more than three decades, Ted Stevenot has helped Ohio small businesses evaluate employee benefits as a partner at McCarthy Stevenot Agency, Inc.

He writes the Broker’s Desk series to share practical observations from real health insurance renewals and employee benefits decisions.

Protecting Our Clients’ Privacy

Client names, identifying details, and certain facts have been modified or omitted to protect client confidentiality. The situations described reflect real-world experience, but no post is intended to identify a specific employer.

Looking for a deeper explanation of the renewal process? These guides provide additional context.

Related Resources

• Why Small Businesses Should Build a Health Insurance Renewal System
• Health Insurance Prescreen for Ohio Small Businesses
• How Much Does Small Business Health Insurance Cost in Ohio?
• Ohio Small Business Health Insurance Guide

Disclaimer

Broker’s Desk articles are educational and based on real-world situations encountered in our practice. Client names and identifying details have been changed or omitted to protect confidentiality. Because every employer’s circumstances are unique, these articles should not be considered legal, tax, or insurance advice for any specific situation.

A health insurance renewal crossed my desk this week with a 42% increase.

When employers see a number like that, the natural reaction is to start getting quotes.

That wasn’t my first step.

The goal of Broker’s Desk is to explain how experienced brokers evaluate real-world situations—not to suggest there is one right answer for every employer.

The first thing I did was pull the renewal apart and compare the options that were already available from the current carrier.

Before looking anywhere else, I wanted to see whether there was a reasonable way to bring the increase down without changing carriers or making major changes to the plan.

As I reviewed the renewal, I noticed something else.

This was a very small group, and one employee had stayed on the employer’s health plan after turning 65 because a younger spouse was still covered under the group plan.

Now the spouse had also reached Medicare eligibility.

Before I spent much time comparing deductibles and coinsurance, I wanted to answer a different question.

Looking Beyond the Premium

Should these two individuals remain on the group health plan at all?

If they moved to Medicare, the structure of the group would change immediately.

I wanted to answer that question before deciding whether comparing more health plans even made sense.

Only after looking at that bigger question did I go back to comparing plan options.

Comparing the Available Options

Here’s an example of the type of comparison I put together.

Benefit	Renewal Plan	Option A	Option B
Individual Deductible	$2,500	$3,000	$5,000
Family Deductible	$5,000	$6,000	$10,000
Coinsurance	100%	80%	100%
Individual Out-of-Pocket Maximum	$7,000	$8,000	$8,000
Family Out-of-Pocket Maximum	$14,000	$16,000	$16,000
Office Visit Primary/Specialist	$30/$60	$30/$60	$30/$60
Prescription Drugs	Rx Level 1	Rx Level 1	Level 1 Rx
Estimated Monthly Medical Premium	$4,191.59 (+42%)	$3,642.59 (+23.4%)	$3,686.08 (+24.87%)

An anonymized comparison showing how we evaluated renewal options before making any recommendation.

What Happens Next?

I wasn’t looking for the cheapest option.

It was about seeing whether modest adjustments to the current plan could reduce the increase while preserving as much of the existing coverage as possible.

In this case, changing the deductible and coinsurance reduced the projected increase substantially while keeping the same carrier.

That may or may not be the direction this employer ultimately chooses.

They may decide to stay with the renewal.

They may adjust the current plan.

They may decide it’s time to complete a health insurance prescreen and look more broadly.

The important part is that those decisions come after understanding the renewal, not before.

Sometimes the premium is the story.

Sometimes it isn’t.

Sometimes opening the renewal tells you something about the people covered by the plan that is even more important than the premium itself.

We’ll see where this one ultimately lands.

At a Glance

Every renewal is different. Broker’s Desk shares real situations to explain the evaluation process, not to suggest there is one right answer for every employer.

• A large renewal doesn’t automatically mean it’s time to change carriers.
• The first step is understanding the renewal before shopping.
• Changes in the makeup of a small group can be just as important as premium.
• Modest plan adjustments sometimes reduce increases while preserving coverage.
• Every renewal deserves a thoughtful review before broader market shopping begins.

Frequently Asked Questions

Can Medicare eligibility affect a small business health insurance renewal?

Yes. When employees or covered spouses become eligible for Medicare, it can change the structure of a small employer’s health plan and create options that didn’t previously exist.

Should every large renewal lead to shopping the market?

Not necessarily. Sometimes the better first step is understanding the renewal and evaluating whether reasonable plan adjustments or structural changes make sense before requesting quotes.

Can staying with the same insurance carrier reduce a renewal increase?

Sometimes. Different plan options from the same carrier may reduce the increase while preserving much of the coverage employees already know.

About the Author

For more than three decades, Ted Stevenot has helped Ohio small businesses evaluate employee benefits as a partner at McCarthy Stevenot Agency, Inc.

He writes the Broker’s Desk series to share practical observations from real health insurance renewals and employee benefits decisions.

Protecting Our Clients’ Privacy

Client names, identifying details, and certain facts have been modified or omitted to protect client confidentiality. The situations described reflect real-world experience, but no post is intended to identify a specific employer.

Looking for a deeper explanation of the renewal process? These guides provide additional context.

Related Resources

• Why Small Businesses Should Build a Health Insurance Renewal System
• Health Insurance Prescreen for Ohio Small Businesses
• How Much Does Small Business Health Insurance Cost in Ohio?
• Ohio Small Business Health Insurance Guide

Disclaimer

Broker’s Desk articles are educational and based on real-world situations encountered in our practice. Client names and identifying details have been changed or omitted to protect confidentiality. Because every employer’s circumstances are unique, these articles should not be considered legal, tax, or insurance advice for any specific situation.

Every year, an employer opens a small business health insurance renewal and sees a number they weren’t expecting.

Sometimes it’s manageable.

Sometimes it’s 25%.

Sometimes it’s much more.

The first reaction is often:

“We need to start getting quotes.”

Interestingly, that’s usually not my first step.

After more than 30 years helping Ohio small businesses evaluate health insurance renewals, I’ve found it’s better to understand the renewal before deciding whether it’s time to replace it.

The goal of Broker’s Desk is to explain how experienced brokers evaluate real-world situations—not to suggest there is one right answer for every employer.

Here’s what the first hour usually looks like.  While every renewal is different, the process of evaluating one is surprisingly consistent.

1. Break the Health Insurance Renewal Apart

The first thing I do is pull the renewal apart and compare the benefits side by side.

I’m looking beyond the premium to understand what changed and whether those changes justify the increase.

Insert comparison table image here

Caption: An anonymized comparison showing how we evaluate renewal options before making any recommendation.

2. Look for the Least Disruptive Solution

I’m not trying to find the cheapest plan.

I’m trying to preserve as much of what employees already know and value as possible while bringing the renewal back under control.

Before considering another carrier, I’ll often evaluate whether modest adjustments to the current plan are enough to improve the renewal, such as:

• A modest change in coinsurance.
• A slightly higher deductible.
• A different out-of-pocket maximum.
• Another plan from the same carrier with similar benefits.

Sometimes a relatively small adjustment is enough to bring a renewal back into a range the employer is more comfortable accepting.

3. Ask the Bigger Question

Only after we’ve explored those possibilities do we ask:

Is it time to look beyond the current plan?

Sometimes the answer is yes.

Sometimes it isn’t.

That’s the point where we decide whether a broader market review or health insurance prescreen is worthwhile.

Every Renewal Starts a Conversation

No two employers are exactly alike.

The right answer depends on the business, the employees, and the goals of the employer.

That’s why I think of a renewal as the beginning of a conversation rather than the end of one.

Over the coming weeks, I’ll share a few anonymized renewal examples that show how this process works in practice.

At a Glance

• Renewals deserve analysis before shopping.
• We look for the least disruptive way to control costs.
• Premium is only one part of the decision.
• Structural changes can matter as much as plan changes.
• Every employer’s situation is unique.

Frequently Asked Questions

Should I get quotes immediately after receiving a health insurance renewal?

Not necessarily. Before requesting quotes, it’s often helpful to understand exactly what changed and whether modest adjustments to the current plan could improve the renewal.

Does every renewal require changing insurance carriers?

No. In many cases, employers choose to remain with their current carrier after evaluating plan options that better balance premiums, benefits, and disruption.

When should a small business consider a health insurance prescreen?

A prescreen is often worthwhile when reasonable plan adjustments don’t produce an acceptable outcome or when an employer wants to evaluate broader market options before making a renewal decision.

About the Author

For more than three decades, Ted Stevenot has helped Ohio small businesses evaluate employee benefits as a partner at McCarthy Stevenot Agency, Inc.

He writes the Broker’s Desk series to share practical observations from real health insurance renewals and employee benefits decisions.

Protecting Our Client’s Client Privacy

Client names, identifying details, and certain facts have been modified or omitted to protect client confidentiality. The situations described reflect real-world experience, but no post is intended to identify a specific employer.

Looking for a deeper explanation of the renewal process? These guides provide additional context.

Related Resources

• Why Small Businesses Should Build a Health Insurance Renewal System
• Health Insurance Prescreen for Ohio Small Businesses
• How Much Does Small Business Health Insurance Cost in Ohio?
• Ohio Small Business Health Insurance Guide

Disclaimer

Broker’s Desk articles are educational and based on real-world situations encountered in our practice. Client names and identifying details have been changed or omitted to protect confidentiality. Because every employer’s circumstances are unique, these articles should not be considered legal, tax, or insurance advice for any specific situation.