Views 5 health insurance pitfalls businesses can avoid

Published 1 Min Read

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Employee benefits are the second-largest line item for companies after payroll — yet they are often underappreciated and underutilized by employees, and the investment ultimately gets undermined.

This begs the question: How can your employer clients make the most of that investment and positively impact their workforce?

Healthcare insurance can feel like smoke and mirrors. It is a stubborn industry, clinging to its acronyms and cryptic underwriting explanations. If you ever had a “no-shop” offer from an insurance carrier, you may have had the odd realization that healthcare sometimes resembles buying a used car. As a result, business leaders can lack confidence in their insurance carrier or broker, a feeling that translates to employees.

Instead, help employers understand how premiums and renewals are “calculated” based on group size, demographics and loss ratio. Knowledge will demystify what goes on behind the underwriting curtain, and clients will be better equipped to navigate renewals and justify budget increases.

Sommer Sherrod
Vice president, Healthcare Strategy and People Strategy Consulting

Sommer Sherrod is the vice president of Healthcare Strategy and People Strategy Consulting at Insurance Office of America.


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