Group Benefits Renewal Checklist for Canadian Employers

1. Before the Renewal: Review Your Current Plan

Gather the essential details of your existing benefits plan.

Confirm the following:

• Current insurance carrier
• Renewal date
• Number of eligible employees and dependants
• Employer contribution
• Employee contribution
• Benefit classes and eligibility requirements
• Waiting periods
• Major coverage limits

Having this information readily available provides a clear starting point for your renewal review.

2. Review Workforce Changes

Your benefits plan should reflect your current workforce and anticipated business needs.

Identify any changes involving:

• New hires and employee departures
• Expected hiring or layoffs
• Acquisitions or organizational restructuring
• Changes in employee classes or eligibility
• Changes in employee locations

These changes may affect plan administration, eligibility, and your company's overall benefits requirements.

3. Review Your Claims Experience

Request the available claims reports and utilization information for the major benefit categories, subject to applicable privacy requirements and reporting limitations.

Review the following categories where applicable:

• Prescription drugs
• Dental care
• Paramedical services
• Mental health services
• Vision care
• Other extended health benefits

Ask your broker to explain which categories are contributing most to cost changes and whether any notable trends or unusual claims patterns are affecting the renewal.

Understanding your claims experience can help identify potential cost pressures and opportunities for plan adjustments.

4. Understand Your Renewal

When your renewal proposal arrives, review more than the total percentage increase.

Identify:

• The change in total premiums
• Premium changes by benefit category
• Claims experience and relevant claims projections
• Applicable trend and pricing assumptions
• Pooling charges or other risk-related charges, where applicable
• Changes in pricing assumptions or methodology
• Any proposed changes to coverage or plan terms

For example, a 10% overall increase could reflect different movements across individual benefit categories.

Ask your broker to explain the main factors behind the proposed renewal and clarify any figures you do not understand.

5. Ask Your Broker the Right Questions

Use these questions to guide your renewal discussion:

1. What is driving the renewal increase?
2. Which benefit categories are contributing most to the change?
3. How does our claims experience compare with the assumptions used in our pricing?
4. How much of the increase is related to claims experience?
5. What other pricing factors are affecting the renewal?
6. Are there alternative plan designs worth considering?
7. Can we adjust the plan without removing coverage employees value?
8. Would a market review help us assess our options?
9. What would switching insurance carriers involve?
10. When is the decision deadline, and when must any changes be finalized?

Clear answers will help you evaluate your options before committing to a renewal.

6. Evaluate Your Plan Design

Review whether your existing coverage remains appropriate for your workforce and budget.

Consider the following:

• Deductibles and coinsurance
• Reimbursement levels
• Annual maximums and coverage limits
• Prescription drug coverage and management provisions
• Dental coverage
• Paramedical service maximums
• Mental health coverage
• Vision care
• Health Spending Account (HSA) options
• Employer and employee cost-sharing arrangements

The objective is not to change everything. It is to identify specific issues and determine whether targeted adjustments could improve the balance between cost and coverage.

Consider the potential impact on employees before making changes.

7. Compare Alternatives Carefully

If your broker presents alternative plans or insurance carriers, compare them using consistent criteria.

Evaluate:

• Total employer cost
• Employee contributions
• Coverage levels and exclusions
• Contract terms and conditions
• Customer service and claims administration
• Plan administration requirements
• Renewal pricing methodology
• Prescription drug management provisions
• Long-term cost sustainability

A lower premium does not necessarily mean better value. Make sure the alternatives provide a meaningful comparison of coverage, service, and overall cost.

8. Prepare Employee Communications

If your renewal involves changes to coverage, contributions, or plan administration, prepare clear communication for employees before the changes take effect.

Include:

• The effective date
• What is changing
• What is staying the same
• Any changes to employee contributions
• Actions employees need to take
• Where to find updated plan information
• Who to contact with questions

Advance communication helps employees understand their coverage and prepare for any changes that affect them.

9. Complete Implementation Requirements

Before the new plan takes effect, confirm that all required administrative steps have been completed.

Use this checklist:

• Signed renewal or policy documents
• Required employee enrolment or eligibility updates
• Plan administrator access
• Payroll deductions and contribution changes
• Beneficiary information, where required
• Evidence of insurability, where applicable
• Coordination of the previous plan's termination if changing carriers
• Employee communications
• Confirmation of the new plan's effective date and coverage details

Confirm the specific requirements with your broker and insurance carrier. Requirements may differ depending on the plan and the changes being implemented.

10. Review Your Plan After Renewal

A renewal should be part of an ongoing benefits strategy, not just an annual administrative exercise.

Schedule periodic reviews throughout the year to monitor:

• Claims trends and cost pressures
• Employee feedback
• Benefit utilization
• Workforce changes
• Emerging employee needs
• Opportunities to improve plan design or administration

Regular reviews can help you identify issues earlier and prepare for future renewal discussions.

Final Group Benefits Renewal Checklist

Before approving your renewal, make sure you can answer these questions:

• What changed in the renewal?
• Why did the costs or coverage change?
• Which benefit categories are driving the costs?
• What alternatives were considered?
• How much will employees contribute?
• What will the employer pay?
• What coverage will employees receive?
• Are the proposed plan terms and coverage appropriate?
• What needs to be completed before the effective date?
• When should the plan be reviewed again?

If you can answer these questions confidently, you will be better prepared to make an informed benefits decision.

Let Next Benefits Help With Your Renewal

Navigating a group benefits renewal can be complicated, especially when costs are rising or your workforce's needs are changing.

Next Benefits helps Canadian employers review their existing benefits plans, understand renewal changes, evaluate plan design, and explore available options.

Contact Next Benefits to discuss your upcoming renewal and determine whether your current plan continues to meet your business and employee needs.