When was the last time you took a close look at your company’s benefits plan? If it’s been more than a year, there’s a good chance you may not be getting the value you think you are.
Offering a strong benefits package is essential. But that doesn’t mean you need to overspend to stay attractive. Many employers unknowingly carry hidden costs that quietly drain their budget.
Here’s how to spot them and what to do about them.
Outdated plan design.
Plans that haven’t been reviewed in years may include outdated or irrelevant coverage. Are you paying for benefits your team no longer uses or doesn’t value?
Survey employees to learn which benefits matter most. You might find room to cut back or reallocate spending to better support your team.
High administrative fees.
Insurance carriers and third-party administrators charge fees for managing your plan. These costs aren’t always transparent and can creep up over time.
Ask for a clear breakdown of your administrative fees and compare them against those of other providers. You may be able to negotiate better terms or reach out to Navy & Sage Benefits to make a switch.
Premiums that don’t reflect claims.
If your claims experience has been low, but your premiums keep rising, it could be time for a change.
Request a detailed claims experience report annually. This will show whether your premiums are in line with actual usage and help identify where you’re overpaying.
Underused benefits.
Unless you regularly review your detailed claims experience, you may be paying benefits your employees aren’t using. Review the areas with low utilization and consider reallocating those dollars to more valuable offerings, such as mental health, virtual care, vision, or dental.
Automatic renewals without market check.
It’s easy to fall into the habit of auto-renewing your plan year after year. We suggest that all employers reach out to their benefits advisors annually to review their plan and determine whether any details need to be changed, updated, or challenged.
How to conduct a cost review.
If you want to conduct a cost review, here’s what we’d suggest doing.
Review the correct data. Ask your current provider for a complete breakdown of:
- Premiums
- Claims paid
- Administrative fees
- Usage by benefit category
Second, compare year-over-year trends. Are costs rising faster than inflation and your claims utilization?
Finally, consult a benefits advisor. Reach out to one of the Navy & Sage Benefits advisors, and we will provide an unbiased review of your current plan and history. We’ll be able to uncover savings and value adds you didn’t know were available.
Don’t cut costs when you can cut waste.
Reviewing your plan doesn’t mean you need to reduce benefits. Smart employers often enhance coverage after identifying waste, offering more relevant benefits for their employees’ unique needs.
The key is making sure your dollars work as hard as your employees do.
Let Navy & Sage Benefits review your plan.
Reach out to one of our advisors and let us help you! We’ll uncover opportunities, eliminate hidden costs and design a plan that meets your budget and your employees’ needs. It all starts with a call!
