A broker’s guide to avoiding common mistakes in group health insurance renewals
Brokers are all too familiar with the panic of health insurance renewals. The window opens a month or two before signing deadlines, but clients haven’t looked at their policy since last year. They only have time to make minor plan tweaks instead of exploring what’s best for the company.
Starting renewal conversations in advance changes everything. The proactive approach allows employers to explore coverage options, navigate market trends, make confident decisions, and get stronger outcomes.
Early renewal planning also gives brokers an opportunity to deliver real value to clients. It’s the difference between renewing a policy and reshaping how a client thinks about health insurance altogether.
In this blog, we address:
What’s at risk when you don’t start early
Group health plans are typically due for renewal 30 to 60 days before the policy ends. Planning right before the deadline can limit plan options and leaves little room to pivot away from high renewal rates. That’s on top of creating unnecessary stress for HR teams.
Waiting until the last minute to plan health insurance renewals puts a company at risk of:
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Health insurance renewal increases: Companies are forced into a plan that comes with steep renewal rates
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Undesirable carrier options: Employers are stuck with insurance carrier reductions to plan offerings, service areas, or preferred networks
- Participation concerns: Employees reject the plan because they haven’t had enough time to research their options
Group health insurance renewal checklist + common mistakes
To start early, you have to know where to start. Review this checklist with clients before their policy is set to renew. It can help avoid four common mistakes:
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Taking on preventable rate hikes because historical data wasn't leveraged during policy negotiations
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Offering 1) single-region coverage that restricts out-of-state or remote workers and/or 2) coverage that only works for a portion of staff
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Paying for rich, unused benefits while ignoring core coverage gaps
- Absorbing local price hikes without comparing broader marketplace alternatives
| Questions to ask before renewing health insurance | Helps avoid this common mistake | |
| Company costs | What have the company’s health insurance rates been over the past three to five years? What is the company’s medical claims history, including high-cost claims? |
Taking on preventable rate hikes because historical data wasn't leveraged during policy negotiations |
| Workforce makeup | How is the workforce distributed across remote, hybrid, and out-of-state locations? Has that changed since last year? How do health coverage needs vary across age groups, geographic locations, and pay structures? |
Offering 1) single-region coverage that restricts out-of-state or remote workers and/or 2) coverage that is only valuable for a portion of staff |
| Plan use | What is the current plan participation rate? How are employees using their coverage? (e.g. preventive vs. urgent care, prescriptions, and hospitalizations) What is employee feedback about network accessibility, out-of-pocket costs, and plan choice flexibility? |
Paying for rich, unused benefits while ignoring core coverage gaps |
| Market dynamics | Are there any upcoming changes to ACA regulations? Are there any state-specific rate considerations? What are ACA rates for next year? |
Absorbing local price hikes without comparing broader marketplace alternatives |
Stay ahead of market shifts with Take Command’s ACA rate tracker.
ACA rate tracker
Why to consider ICHRA during renewal planning
Oftentimes when you go through this checklist with a client, rate hikes, geographic limitations, employee choice, and taxes become a core part of the conversation.
Here is why to consider ICHRA as an option:
Fixed costs for health insurance
Challenge: A company is facing steep renewal rates with their group plan
ICHRA solution: Fixed monthly costs without surprising rate hikes at the end of the year
Customizable coverage
Challenge: An employer manages remote or multi-state employees facing geographic restrictions under regional plans
ICHRA solution: Customizable, nationwide access to local coverage
Employee plan choice
Challenge: A workforce wants personal choice in health plans, doctor networks, or coverage levels
ICHRA solution: Employees choose their ideal plan from healthcare.gov or their state marketplace
Tax advantages
Challenge: Traditional group plans add payroll taxes for the employer and are taxable income for employees
ICHRA solution: By design, ICHRA is 100% tax-deductible as a business expense, and reimbursements are tax-free for employees
The conclusion: Brokers and clients both benefit by planning early
Timing really is everything when planning for a health insurance renewal. It takes clients from reactive, fear-based decisions to a proactive, confident mindset. Brokers are able to take a more strategic role, supporting a strong client relationship.
Want to see how an ICHRA strategy compares to your client's current group plan? Submit a lead and tell us about a client you think could be a good candidate for ICHRA, and we can help you model real-world costs and coverage options.
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Key resources for health insurance renewals
What brokers would tell colleagues who are new to ICHRA:
What brokers wish they knew before their first ICHRA
1-minute video on doing your ICHRA homework:
Advice from Francis Deppner of Benefits Business Group
Identify if clients or prospects are a good fit for ICHRA:
ICHRA Prospecting Guide for Brokers
Plan early by following ACA rate announcements in real time:
ACA rate tracker
Connect with an expert
Let's talk through your HRA questions
Our HRA management solutions help companies of all sizes reimburse employees for health insurance, giving employees choice over what works best for them and promoting health and wellness within an organization. We offer ICHRA and QSEHRA administration software designed to be simple, effective, and empowering. Take Command is trusted by 7,000+ leading organizations and the only HRA administrator with in-house enrollment support.
