Get a Quote
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When employee benefits renewal season rolls around, a lot of businesses fall into the same cycle: “Send me a quote.”
The broker shops the market. A few spreadsheets get compared. Everyone crosses their fingers and hopes this year’s increase won’t be too painful. Then renewal hits again next year, and the cycle repeats.
At CoVerica, we call that the “quote and hope” method. And for many businesses, it’s one of the biggest reasons healthcare costs continue to rise without any real long-term strategy behind them. solution.
The Problem With “Quote and Hope”
Most employers are shopping the same handful of major carriers:
In the industry, these carriers are often referred to as the “BUCAs.”
The challenge is, if multiple brokers are quoting the same few carriers, the pricing usually ends up looking pretty similar. There’s rarely some hidden “magic quote” waiting to be discovered.
Even when a company finds short-term savings, there’s no guarantee those savings will still exist at the next renewal. Without a strategy, businesses end up reacting to healthcare costs instead of managing them.
Smart Businesses Use Strategies Everywhere Else
Think about how companies approach other major business decisions.
They build strategies around supply chain management, hiring and retention, technology investments, operations, and risk management. No successful leadership team says, “Let’s just hope this works out.”
But when it comes to employee benefits, many organizations still rely on annual quoting as their primary plan. That’s backwards.
Benefits strategy should be treated like every other major business initiative: intentionally, proactively, and with long-term goals in mind.
The Real Goal: Control the Underlying Cost
If a company truly wants to manage healthcare spending, the focus has to shift away from simply comparing premiums. Insurance premiums are driven by healthcare costs. And healthcare costs are influenced by things like:
You don’t lower healthcare spending just by negotiating insurance harder. You lower it by creating a smarter system.
Quality Healthcare and Quality Insurance Aren’t the Same Thing
A lower premium doesn’t automatically mean a better plan. And a recognizable insurance logo doesn’t necessarily mean employees are receiving high-quality, cost-efficient healthcare. There’s a difference between quality insurance and quality healthcare.
For example, helping employees access higher-quality providers can often reduce repeat procedures, unnecessary treatments, and avoidable claims. Better care can actually lead to lower long-term costs.
Insurance Companies Aren’t Trying to Lower Revenue
Here’s another important perspective businesses should understand: What employers call “premiums,” insurance companies call “revenue.”
No publicly traded company walks into a boardroom saying, “We want to make less revenue this year.” That doesn’t mean carriers are bad actors. It simply means employers need to recognize the system they’re operating inside.
If employers only focus on shopping rates every renewal season, they’re allowing the market to dictate the outcome. A strategic approach gives businesses more control over their long-term costs.
What Employers Should Ask Their Benefits Consultant
When evaluating a benefits advisor or consultant, don’t just ask, “Can you get us a better quote?”
Instead, ask questions like:
The right consultant shouldn’t just bring quotes to the table. They should bring a strategy.
Moving Beyond Renewal Season
At CoVerica, we believe employee benefits should support both the health of your employees, and the financial health of your business. That takes more than “quote and hope.”
It takes strategy, education, and a partner willing to look beyond next year’s renewal spreadsheet. Because the companies taking a proactive approach today are the ones better positioned to control costs tomorrow.
Ready to Stop Playing Defense With Your Benefits Plan?
If your employee benefits strategy has become an annual cycle of spreadsheets, renewals, and hoping for a smaller increase next year, it may be time for a different approach.
At CoVerica, we help businesses move beyond “quote and hope” by building benefits strategies focused on long-term cost control, smarter healthcare utilization, and better outcomes for employees.
Whether you’re frustrated by rising renewals, unsure if your current plan is truly competitive, or simply want a clearer strategy moving forward, we’re happy to have a conversation.
Schedule a no-pressure benefits strategy review with our team and discover where your plan may be leaving money and opportunities on the table. Call: 945-337-2286.
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