Home Authors Posts by John Preuss Senior Account Executive, Employee Benefits
Frequently going to bid for lower group health insurance rates can end up hurting you in the long runHow should you react when your group health insurance rates go up? Some might think it’s fairly simple: it’s time to shop around! In other words, you show your current carrier you mean business by going out to bid. And since they don’t want to lose you, they’ll lower your rates. Sounds like a classic example of using marketplace competition to your advantage, right? Unfortunately, it’s not that simple. Once upon a time, employers may have been able to get away with that strategy. But those days are largely gone, thanks to unprecedented industry consolidation and a host of other reasons. And that has huge implications for employers. In fact, when you go out to bid frequently, you are likely hurting your chances for the very thing you’re trying to achieve—maintaining lower rates. So, why is that the case and what’s an employer to do? How can you sensibly navigate the market to obtain the most favorable rates?