At DSG Benefits Group, we built our firm with one laser-focused intention: to be masters in employee benefits, not jacks of all trades.
We’ve stayed in our lane because we know what matters. Employee benefits typically represent your second or third largest line item on your income statement, and it’s the most impactful benefit for your employees. That kind of spend demands specialized expertise, not someone who dabbles.
The Reality You’re Facing
If your group health plan renews January 1, you’re likely looking at an 8-10% increase at minimum. We’ve talked to employers who received 60-70% rate increases. That doesn’t work. You can’t absorb that as a company, and you can’t shift a 20-25% increase entirely to employees, especially at small to midsize companies. It’s detrimental.
Here’s another uncomfortable truth: five or six years ago, prescription drugs represented 5-6% of total claims. Today, we’re seeing 20-30% on average. In some cases, it’s over 50% of total claims. That’s not just daunting, it’s unsustainable.
But there are solutions. You just need guidance from someone who is willing to roll up their sleeves and do the actual work.
Four Free Tips to Address Rising Costs
- Don’t accept renewals at face value.
Ask questions. Ask for data. If you’re working with a broker, don’t just look at spreadsheets. Analyze what’s actually driving your costs. - If you’re a midsize company, your rates are based on claims.
Understand what that means for your specific situation and use it to your advantage. - Consider alternative funding options.
If it makes sense for your organization, look at partially self-funded health plans. If you’re receiving low increases in the fully insured world, you should probably be self-funding. Otherwise, you’re just making the carriers rich. - Start early.
If you renew January 1, you shouldn’t be making decisions over Thanksgiving. You should have been working much earlier so you have time to evaluate options properly.
Take Control of Your Benefits Strategy
You have more options than you think. When it comes to your second or third largest business expenditure, you deserve an advisor who will roll up their sleeves and do the real work.
Ask questions. Demand data. Challenge the status quo.
The right partner will design a plan that aligns with your corporate objectives and is built to last. They’ll fight for your bottom line, not just negotiate a lower increase and call it a day.
DM me for more information.