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.