Serving over 200 companies and more than 2000 families since 1988

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How to Save on Group Health Insurance This Year

Posted By on Jul 18, 2016 | 0 comments


This fall, many small businesses whose group health insurance policies renew on December 1 will see an increase in their premiums. And if you’re like most small business owners, you aren’t thrilled about the prospect of increased overhead costs. But luckily, a little loophole could help you to lock in a lower premium for the following year. Read on to see how it could work for you.

Each year, 60 to 70 percent of California small group health insurance plans renew on December 1. Health insurance carriers have become overwhelmed with the volume, which coincidentally hits right at the beginning of a very busy holiday season. This translates into an enormous amount of work being performed all during one quarter of the year. And of course, health insurance companies are made up of people who want to take time off of work to enjoy the holidays, just like any other company in the country.

To address this problem, many health insurance carriers offer the option to push up your renewal date to either August 1 or September 1. The benefit for them is clear: They get to avoid some of the madness that will strike in December. But to make the option appealing to you, the small business owner, they had to offer something in return. So in exchange for renewing your group health insurance policy early, many companies allow you to lock in a low rate that excludes predicted fourth-quarter premium hikes.

This option is not offered by every health insurance provider, and might not work in your case for various reasons. But for most small businesses, locking in your rate this August or September will be an option. And of course, it also means you won’t be burdened with making complicated insurance decisions at the end of the year, when you might be getting ready for your own busy season.

To find out whether your group health insurance provider is offering this valuable incentive, give us a call. We can help you sort through your options, and as always, keep your health insurance premiums affordable.

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