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Group Health Insurance Renewal Checklist for Manufacturing Companies

August 23, 2021, by New City Insurance

group of happy clothing factory workers inside production area with insurance for manufacturing companiesCompanies that provide employees with access to health insurance plans are responsible for signing up for a new plan or renewing their plan from the previous year. Health insurance renewals are typically an annual occurrence in which insurance carriers adjust their offerings and rates. During this period, employers have the opportunity to compare plans and choose the right insurance for manufacturing companies that best suits their budget and needs.

Enrolling in a group health insurance plan can be beneficial for both employees and employers. A group health insurance plan is typically more affordable than an individual healthcare plan as the risk is spread across a large group rather than a single plan participant.

Employees typically pay less each year in taxes as premiums can be paid using pretax dollars. Employers also save money by paying lower payroll taxes and using annual contributions as deductions during tax time. It is important to understand what to expect during group health insurance renewals to ensure that no aspect of the renewal process is overlooked.

Checklist for Group Health Insurance Renewal

1. Review Plan Performance, Usage and Renewal Rates

Look back on quarterly benefit plan updates to measure how the plan has performed over time. Year-end reviews generally provide an assessment that details what services were used most often and where the bulk of the spending was allocated. Businesses can expect some increases in plan costs due to reasons like rising healthcare and a lack of insurer competition.

2. Evaluate Employee Benefits Plan Objectives

Consider key objectives when renewing group health insurance. Health insurance benefits may be offered as a way to attract top talent or to remain competitive in a crowded market. Include budget in the list of objectives and determine if any cost increases still fall under budget or if changes need to be made to cut costs elsewhere.

3. Conduct a Renewal Survey and Collect Feedback

About three months before the renewal date, consider sending out a renewal survey to employees. This feedback can tell business leaders how workers feel about certain aspects of the plan, including costs, services and overall plan structure. Use this feedback to make plan recommendations.

4. Note Plan Changes or Adjustments

businesswoman and her colleague communicating with workers talking about insurance for manufacturing companiesWhen renewing group health insurance, it is essential to check for recent updates or changes in compliance law. Health and welfare benefit plans often experience modifications from year to year and manufacturing companies must become familiar with these changes to avoid penalties.

The COVID-19 pandemic has greatly impacted the cost of Affordable Care Act plans in 2021. In response to the crisis, many insurance companies have chosen to lower their rates or implement a small premium increase during the renewal period.

Applicable large employers (ALEs) are required to report all information relating to employer-sponsored health coverage to the IRS on Form 1095-C. The IRS then uses this information to verify coverage. Businesses are responsible for determining which ACA reporting requirements apply to their company and what is required of them for reporting purposes.

Under the ACA, employer-shared responsibility rules stipulate that ALEs must provide full-time employees and their dependent children with health coverage at a minimum value. To be considered affordable, an employee’s required contribution to the health plan must not exceed 9.5 percent of the employee’s household income for that taxable year. Failure to provide affordable health coverage to staff may result in penalties.

5. Promote Employee Health Plan Enrollment

Part of the group health insurance renewal process involves choosing a plan. There are several types of group health insurance plans for manufacturing companies to choose from, such as:

  • Preferred Provider Organization (PPO) – A PPO gives employees the freedom to see the provider of their choice. However, seeing a doctor outside of the insurance company’s network may result in a lower coverage amount. With a PPO, employees are not required to choose a primary care physician (PCP).
  • Health Maintenance Organization (HMO) – An HMO requires employees to choose a PCP and to request a referral to see specialists as needed. In addition, employees are required to see providers in the insurance company’s network as doctors outside of the network are generally not covered.
  • Exclusive Provider Organization (EPO) — An EPO has features of both a PPO and an HMO. Employees are not required to choose a PCP, but there may not be coverage for providers outside of the insurance company’s network.

Employees have the opportunity to choose a plan available through their employer or make changes to their existing coverage to account for qualifying life events.

6. Confirm the Terms and Complete Renewal

Shortly before the renewal date, work with a benefits consultant to review the finalized plan. The benefits consultant will handle any paperwork required by the health insurance carrier and provide a renewal date based on information provided by the health insurance company.

Speak With The Experts About Insurance For Manufacturing Companies

business team standing hands together in office discussing their insurance for manufacturing companiesRenewal can be a confusing time for manufacturing companies regardless of the number of employees or type of plan. The experienced team at New City Insurance can make the process easier by helping businesses find the right insurance products for them. For more information about group health insurance renewal or to speak with an employee benefits consultant, contact New City Insurance.

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Filed Under: Group Health Insurance,  Manufacturing

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New City Insurance
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Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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