Renewal cost sharing calculator: who pays for the increase?
When a renewal comes in higher, the employer decides how much to absorb and how much to pass on. This calculator shows the impact on the company and on each paycheck under different approaches.
Compare ways to split a renewal increase
Enter your group size, the current premium per employee, the current employee share and the renewal increase.
Employer and employee shares combined.
Your estimate
This calculator gives a planning estimate only. It applies the increase evenly and ignores tier differences and any plan design change.
Three common approaches
An employer can absorb the whole increase, which protects take-home pay but raises company cost, share it at the current split, which keeps the ratio the same, or pass most of it to employees. Each has different effects on morale, retention and budget, and the numbers help leaders choose with eyes open.
Beyond the split
Cost sharing is only one lever. Plan design changes, a market review and funding changes can reduce the increase itself before you decide who pays it. Some employers pair a smaller pass-through with a richer plan option so employees can choose.
Common questions
What is a fair split?
There is no single answer. It depends on your market, your budget and your goals for retention. Many employers keep the current ratio.
Should I tell employees about the increase?
Clear communication helps. Explaining what drove the increase and what you are absorbing builds trust.
Can I treat dependents differently?
Yes. Many employers pay more toward employee-only coverage and less toward dependents.
What if employees drop coverage?
A large pass-through can lower participation, which can affect your carrier and your group. Test the impact before you decide.
Talk to us about your renewal
Book a 30-minute call and we will look at your renewal, your claims and the options that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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