Stop Reacting to Your Renewal: Proactive Planning for Open Enrollment Success

Congratulations!  We’ve made it to March and are finally past the Open Enrollment craze. For many organizations, the beginning of the year feels like a reprieve from the madness that the end of the year brings. For others, however, the beginning of the year actually marks the start of their renewal planning process.

The benefits renewal process can often feel reactive. Renewal numbers arrive a few short months before Open Enrollment and can be higher than expected, and employers are suddenly forced to make quick decisions that impact both budgets and employees. Most employers who have experienced this situation understand that successful and sustainable benefits strategies rarely happen in a rush.

The most effective organizations begin planning for their next Open Enrollment almost immediately after the previous one ends. While it may feel early, the months following Open Enrollment are the ideal time to reflect, analyze data, and build a thoughtful strategy for the year ahead.

Employers who run their benefits on a calendar year are about seven months away from their next Open Enrollment. That might sound like plenty of time, but organizations that start now intentionally evaluating their employees, plans, costs, and resources are typically the ones that see the best outcomes.

If you’re looking to properly prepare for your next Open Enrollment, here are proven considerations Innovo recommends:

Start Your Planning with an OE Debrief

Meet with your broker to review your most recent Open Enrollment and discuss what went well and what could be improved. An OE debrief is one of the most valuable (and often overlooked) planning tools, as history often repeats itself, both good and bad.

Some questions to consider include:

• Were employees engaged in the process?
• Were there education gaps that could be addressed throughout the year?
• Were there common questions that could be repurposed into a FAQ resource for employees or new hires?

Employee satisfaction is paramount to a successful Open Enrollment. Benefits exist to support employees and play a critical role in attraction and retention. If employees perceive their benefits as inadequate or confusing, they may seek opportunities elsewhere.

If possible, consider running an employee survey once Open Enrollment has concluded. This can help benchmark employee perception and provide valuable feedback to guide future strategy. Follow up with another survey before the end of the year to see if/how opinions have changed.

These conversations and efforts often reveal opportunities to improve education, clarify communication, and adjust benefit offerings before the next plan year begins.

Understand Your Claims Reporting

Data is power. If you have access to monthly claims reporting, use it to your advantage. Claims data is one of the most important tools for projecting future renewals and identifying opportunities for cost containment.

If your 2026 renewal came in higher than inflation (currently estimated at 9–12% based on national survey data), it is important to understand why.

Most carrier reports will show:

• Premiums collected
• Claims paid
• High-cost claimants or diagnoses

The target medical loss ratio (MLR) for most fully insured carriers is approximately 85%. This means that for every dollar paid in premiums, about 85 cents goes toward paying medical claims, while 15 cents cover administrative costs and carrier margin.

If your group runs near this target throughout the year, you are likely to see a renewal aligned with medical inflation. If your medical loss ratio is below target, you may see a lower-than-inflation increase. If it exceeds target, higher renewal increases often follow.

Monitoring these trends throughout the year allows employers to plan strategically and explore cost management options early rather than reacting under tight timelines during renewal season.

Employer Education is Key

Understanding the options available to your organization within your market segment well in advance of renewal is critical. Early conversations provide time to explore solutions such as:

• Alternative funding strategies
• Plan design adjustments based on benchmarking
• Pharmacy cost management solutions
• Chronic care management programs
• Innovative solutions emerging in the benefits marketplace

Proactive planning creates flexibility. Having this information available early allows employers to make thoughtful, strategic decisions instead of last-minute changes.

Establish Year-Round Check Points

Benefits strategy should not be a once-a-year conversation.

Organizations that experience the most successful renewals and Open Enrollments maintain regular communication with their brokers and internal stakeholders throughout the year. These discussions often include:

• Monthly or mid-year claims reviews and carrier deep-dive meetings
• Employee feedback surveys and engagement data
• Updates to communication and education strategies
• Strategy and benchmarking reviews

Regular checkpoints help keep everyone aligned and informed, ensuring the renewal becomes the next strategic step, not a rush to the finish line.

Turning Renewals from Reactive to Strategic

As the saying goes: Proper Planning Prevents Poor Performance.

By debriefing early, understanding claims data, educating both employers and employees, and establishing regular checkpoints, organizations can shift their benefits strategy from reactive to proactive.

When renewal season arrives, the conversation becomes less about reacting to rising costs and more about executing a well-planned strategy.

If you haven’t started your planning yet and would like to discuss the best approach for your organization, our team would be happy to help.