As a small business owner with group health insurance coverage, you may be wondering how to renew your current group policy for yourself and your employees. The good news is that the group health plan renewal process could be much simpler than you may think.

To renew small business health insurance coverage, a company typically needs to receive new plan information from their insurance company, choose plan options for their workforce, and then allow employees to enroll.

Continue reading to learn more about the group health plan renewal process for business owners.

What is a health insurance renewal?

Just as you renew your car insurance from time to time, you need to renew your health insurance for your small business as well. This is the process of renewing the health coverage you have for not only yourself, but also for your employees. During this time, you will take a look at the details of your health insurance coverage to make sure your plans are still acceptable for your employees. The insurance company will also take a look at your claims history, the number of employees you have, and any changes from last year to this year. Then, they will present you with an opportunity to renew your health insurance options at specific rates.

When do health insurance renewals take place?

So, how long does it take to renew health insurance? Generally, all health insurance renewals take place around the same time. Usually, that is around December 15, which is also when open enrollment is taking place for health insurance plans. If you have questions about how to renew your health insurance, try to start assessing your coverage options in advance of this date. It’s also a good idea to talk to your employees to make sure they are happy with their coverage as well. That way, you have more time to process all of your options during the renewal process. You will also have more time to talk to the health insurance companies about your options.

Why renew small business health insurance coverage?

Employers renew small business health insurance in order to continue providing coverage for their employees, and to make any needed adjustments to their group health plan from the previous year.

Primary reasons to renew small business health insurance include:

• Keeping the groups’ existing coverage in place for the next year
• Changing insurance companies or switching to a different group plan
• Allowing employees to choose new plan options based on qualifying life events
• Modifying employer cost-sharing contributions to employee health plans

Usually, the group health plan renewal process tends to be focused on maintaining coverage, since group health insurance plans may be more affordable than individual health plans.

In addition to usually being more affordable overall, both employers and employees can benefit from tax advantages from a group plan, such as tax deductions, potential tax credits, and reduced taxable income.

Overall, deciding to renew small business health insurance coverage serves as an important part of the employee benefits renewal process for employers.

How does the group health plan renewal process work?

While you can enroll in a small business health plan at any time of year, most small business employers will typically renew their group health plan toward the end of the year during their state’s Open Enrollment period, or during the Special Enrollment Period for small businesses.

After a company has first enrolled in a group plan, the renewal process will occur once during each following year. Since the plan may or may not be set to renew automatically, employees should review any new plan changes before they become implemented, and you should encourage them to reassess their needs and make sure they’re enrolled in the plan that works best for them.

The health insurance company will provide information to the employer about any pricing and payment changes for the new plan year, which are based on factors including inflation, new industry regulations, network and prescription changes, and risk reassessments.

Here is an overview of the main phases of the group health plan renewal process for employers and employees, after they receive plan information from the insurance company.

• Health plan selection – To renew small business health insurance coverage, the employer chooses health plan options for their employees. The small business employer’s cost-sharing contributions for employee premiums are also usually determined during in this phase.
• Employee enrollment – Next, employees choose plans made available through their employer. Current employees can make changes to their previous coverage due to major life changes or qualifying life events, while new employees can decide whether to enroll in the group plan.
• Renewal completion – After employees finish choosing their health plans, the renewed group health insurance coverage begins on the date specified by the health insurance company.

Ultimately, the group health plan renewal process allows businesses to strategically decide what kind of health coverage will most effectively serve their employees throughout the following year.

Benefits of renewing your health insurance on time

It is critically important for you to make sure that you renew your health insurance on time. Even though it might take some administrative paperwork to get the process done, there are several benefits you will enjoy. For example, you don’t have to worry about waiting periods to take advantage of some of your benefits.

 If you go for a long time without making a claim, you may be awarded a bonus that can help you reduce the cost of your health insurance policy. Of course, the biggest benefit is that you do not have to worry about a lapse in coverage, which could otherwise impact your ability to keep your health expenses covered. Make sure you provide your employees with the health insurance they need by renewing your small business health insurance on time.

How much does it cost to renew group health insurance?

If you are buying small business health insurance, there are a handful of important factors to consider. Group health insurance comes in many shapes and forms, and you need to find the right policy to meet your needs and the needs of your employees. Some of the factors that will impact the cost of group health insurance include the number of employees you have, where you are located, inflation, the type of coverage you want, and the provider you choose.

If you want all the advantages of group insurance, work with an expert during the health insurance renewal process. At eHealth, we know that lots of people have questions about how to renew my health insurance, and we have connections with some of the top small business health insurance providers in the country. Let us help you renew your health insurance.

How to renew small business health insurance through eHealth

When you renew your company’s group coverage with eHealth, you benefit from a simple, easy, and streamlined renewal process. Advantages of using eHealth include receiving access to:

• Group health plan quotes from top companies in your area, provided with no obligation
• Comparison tools allowing you to quickly evaluate group plan rates and benefits
• Licensed insurance agents providing personalized help and dedicated customer service

Employers can also consult eHealth’s Small Business Preparation Checklist when they decide to renew their group plan or choose a new plan. The checklist provides a detailed and comprehensive overview of how to get group coverage, and may be a useful resource to consult during the renewal process for your company.

To learn more about health insurance coverage options for yourself and your employees, visit eHealth.com or speak with one of our helpful licensed insurance agents today.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.