BENEFITS & DATA
Your Benefits Package And Data-Driven Decisions
BY : MICHAEL O ' DONOGHUE , EMPLOYEE BENEFITS ADVISOR , GENERAL INSURANCE SERVICES
We are living in a time of ever-increasing costs , including the costs of health care . Business owners should be asking themselves the following questions : Am I proactively managing the Health Benefits Plan for my employees ? and Do I have a renewal strategy ?”
Your insurance partner can help you make educated , budget-conscious , data-driven decisions concerning your group health insurance plan . To start preparing for plan renewals , it is beneficial if business owners have some idea of how their plan is running year-to-date .
It can be difficult to navigate what data is available for your specific benefits plan , but it is a crucial component of understanding your plan and controlling cost . Without looking into claims reports or your plan ’ s medical loss ratio , it can feel like walking into renewal negotiations blind . It can be a helpless feeling ; however , access to data can be used as ammunition in negotiations by your advisor with the carrier . If the carrier applies a 15 % increase , for example , and we don ’ t feel it ’ s warranted according to our claims data , we can negotiate far better with hard data information to get some relief .
The big question is , how many years can you consistently take a 15 %– 20 % increase in costs and still be financially stable as a business ? The answer for many businesses is a shorter and shorter timeframe in these difficult economic times .
As a business owner , how often are you looking at profit margins and forecasting earnings for the next year ? The same should be applied to your benefits plan . After all , it is probably one of the largest line items in your yearly budget . You should have a data-driven strategy ready for renewal each year . The more data available , the better .
Part of our process is getting data directly from the insurance carrier , putting it into our reports , and sending them to our clients monthly . We make it digestible and easy to understand while highlighting key data points they should know . This allows our clients to know exactly how their plan year is running at any given time . Some of our best work is done outside of the 90- day renewal cycle , and these reports grant our clients the possibility to adjust and plan midyear rather than just at renewal .
Additionally , at GIS , we meet with clients about their renewal strategy . If data tells us a plan is running well , we can negotiate a renewal for the client that reflects that . If it is not running well , we can discuss steps to help bring costs down or investigate other plan options that may be a better fit . It is all about managing expectations , putting a strategy together , and going through the negotiation process armed with as much information as possible . Our goal is to optimize your benefit plan to your needs and culture as a business , enriching your overall benefits and decreasing your overall spend .
Education is another important factor , and thus we meet not only with business owners but with employees as well ! Employee understanding of how best to use the plan and its benefits is of the utmost importance . For more information about Data Driven Decisions and your Health Plan in general , please contact :
Michael O ’ Donoghue Employee Benefits Advisor General Insurance Services , Inc . ( 219 ) 510-6219 modonoghue @ genins . com +
Originally from the Northern Suburbs of Chicago , Mike O ' Donoghue attended Augustana College where he majored in Multimedia Journalism and Mass Communications . Mike married his wife , Abigail , and made the move to Valparaiso in March of 2020 . He volunteers with the Valparaiso Rotary Club , as well as serves as an Ambassador for the Valparaiso Chamber , two positions he is very proud of as he gets entrenched in the community . Mike and Abby have a son , Gannon , who takes up most of their time . He ' s also an avid Chicago sports fan and enjoys golfing and visiting friends and family in his free time .
25