The first number is an opening ask, and accepting it costs money.
Carriers price a first renewal to leave room to move. An agency that accepts it unchallenged pays for that room, and in home care the cost comes out of margin.
The renewal letter starts the conversation.
What Is Actually True
A first renewal rate usually reflects the carrier’s opening position, including a cushion for negotiation and uncertainty. It is not a final price.
Because home care rates are set by payers, an agency cannot pass the increase to clients, so an unchallenged renewal is a direct hit to the owner.
What We Do About It
We decompose the renewal into trend, credibility and rate action, so you can see what the carrier is actually asking for and why.
We then test what is negotiable: the rate, the plan design and the contribution structure.
From a letter to a position.
What We Need
The renewal letter, the current rates and the plan design.
What We Do
We break the increase into its parts and compare it with what is reasonable for your group.
What You Get
A written read on the renewal and a list of what to challenge.
Questions on this topic.
Short answers for agency owners.
Can a carrier actually lower its renewal?
Sometimes, depending on the group and the carrier. We tell you whether the evidence supports a challenge before you spend goodwill on one.
What is credibility?
How much weight the carrier gives your own claims experience versus broader data. Smaller groups get less weight on their own experience.
How fast do we need to respond?
Faster is better. The market gets harder to use as the deadline approaches.
General information, not legal or tax advice. Confirm the rules that apply to your agency with your attorney or tax advisor.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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