Kristen Rivers, a colleague from ParetoHealth, joined me in studio to go over a fully-insured renewal workup. This video offers valuable insights into the critical aspects of fully-insured renewals.
A few of the "highlights" of the work-up:
- High pooling charges, despite the employer having ZERO pooled claims in the past year
- Trend adjustments above the carrier's average
- A projected premium that's 3x higher than their incurred claims from the analyzed period
This renewal is a testimonial to the power of self-funding: if this employer self-funded, they’d save a substantial amount of money, even if they had way more claims than expected.
Even the carrier seems to realize how ridiculous this increase is, as they recommend a 5% rate increase, despite projecting that, according to their math, this employer should receive a 58% increase.
Let me know your take on this renewal in the comments below, and share this video if you found it helpful!
