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Hey Gang,
Could use some input on what you all are doing or what can be done as relates to the following situation:
Small group has renewal date of say January every year. Group has an "all plans" election in place because plan changes not done this was require underwriting and do not enjoy the GI that new groups get (meaning they can be declined for the change).
So Jan comes and goes no changed desired, April comes and carrier does focal review and raises rates 25%, then July comes and employees age-change to next band and get another lovely 22% increase. So, we have in a period of a few months seen a small group experience a 47% rate increase that they have to ride out to the next January before they can make plan changes.
Needless to say, shopping a new carrier and new GI enrollment is the obvious option if the rate increase is objectionable.
My question is, since this is probably fairly common (and let's assume that these particular groups are dependent friendly and it makes no sense to have the dependents on IFP), does anyone actually have a tracking method in place to deal with this before it comes up? I can't imagine short of hiring help just to track 3-4 dates per year per employee per group that this is really very feasible.
How do you guys keep people from getting slammed like this? Or do you just change carriers every so often?
Thanks
Could use some input on what you all are doing or what can be done as relates to the following situation:
Small group has renewal date of say January every year. Group has an "all plans" election in place because plan changes not done this was require underwriting and do not enjoy the GI that new groups get (meaning they can be declined for the change).
So Jan comes and goes no changed desired, April comes and carrier does focal review and raises rates 25%, then July comes and employees age-change to next band and get another lovely 22% increase. So, we have in a period of a few months seen a small group experience a 47% rate increase that they have to ride out to the next January before they can make plan changes.
Needless to say, shopping a new carrier and new GI enrollment is the obvious option if the rate increase is objectionable.
My question is, since this is probably fairly common (and let's assume that these particular groups are dependent friendly and it makes no sense to have the dependents on IFP), does anyone actually have a tracking method in place to deal with this before it comes up? I can't imagine short of hiring help just to track 3-4 dates per year per employee per group that this is really very feasible.
How do you guys keep people from getting slammed like this? Or do you just change carriers every so often?
Thanks