4 Prominent Factors to Consider while Choosing a Group Benefits Plan
If you run a startup business or your established company has lately expanded to bigger than 50 employees, one of the most confusing tasks you might face is implementing a group benefits plan for the first time. Beginning a beneficial plan from scratch can be intimidating as well as time-consuming, especially without a partner to help you know the background and miniature of it all. If you start a new group benefits plan, here are some tips to help you out.
1. Stick to Your Timeline
No matter whether you want to start your group benefits plan in June or January, you should start the process at least six months earlier than your anticipated opening date. That will offer you adequate time to assess various beneficial options, funding platforms, plan designs and other factors that you should consider. Generally medical carriers can offer early numbers about three months in advance to your effective date. You should approach the carriers as close to that date as you can so as to start knowing the possible benefits.
2. Stabilize Your Census
Your workforce is subject to changes, particularly if you need to run a quickly growing business. However, beware; medical carriers have the right to re-rate your workforce if your population changes by more than 10% between the quote date and the final implementation date. If possible, keeping your workforce number relatively stable for many months before your first open enrollment will help ease out any stress that a re-rate would create.
3. Understand Your Workforce
All workforces are not the same. But understanding what your employees want and need can be a great help while creating your first benefit plan. A quick employee survey could be a precious tool to determine what advantages your employees are most interested in. By the same token, several group benefit plans have some requirements about participation – a percentage needed to guarantee rates in the first year. If you have less than that, the advantages may be pricier than originally considered.
4. Beware Individual Underwriting
Based on the size of your group, certain medical carriers may need individual employees to pass through an underwriting process to help the decide the risk associated to your group, if your workforce is stable and everyone wants coverage, there may not be an issue; but groups with an economically or geographically diverse workforce should think twice before they commit to the individual underwriting process. In any case, you should know that the first numbers a provider puts forth may not essentially be their final proposal.
Follow these tips to make the most of your group benefits and see your business growing.