When clients are interested in new employee benefits plan, often one of the things they want to know is ‘how much will it cost?’ Other clients have an existing benefit plan and want to know if the cost of the plan is competitive and fair. Both of these clients come to our team at BenefitDeck in search of options available to them.

While very high - level estimates can usually be provided without upfront information, getting an accurate proposal requires accurate information. Here are some general guidelines of what we would need in order to provide our clients with an accurate employee benefits plan proposal and why.

Your Employee Demographics – First, clients will need to complete an employee data form which includes names of employees (or initials only for added privacy), date of birth, marital status, number of dependents, occupation and salary.

Why? Your employee demographic, including their age, whether they have dependents, and if there are risks associated with their jobs will all determine the rate at which your company will be assessed for medical and other types coverage. For example, a tech start-up with many recent computer engineering graduates will likely be healthier, and therefore may have less medical expenses, and employees would have minimal risk for physical injury at work, all of which lower the insurer’s perceived risk and thus, the plan costs. The salary information is necessary in the event that the client would like to include disability as part of their benefits plan offering.

Your Employee Benefits Plan Needs – Then, we will sit down with you to openly discuss what you would like to see as part of your employee benefits plan and its coverage, today and in the future. (Read more about planning ahead for benefits plans here.)

Why? Some companies might want to cover up to 80% of the benefits plan costs and have the employees pay the rest, while others might have tighter budgets and only want to cover the minimum 50% of plan costs. Some companies want to offer standard disability insurance, medical and dental coverage, while others might want a flexible employee benefits plan. All these needs should be taken into consideration by an experience benefits consultant when providing an accurate proposal.

Your Corporate Objectives – Part of our discussion revolves around your business goals. Understanding the company and its direction helps us determine what you will need from your employee benefits plan. For example, are you in your first year of business? This could affect which providers and offerings are available to your organization. Another consideration is how you intend to leverage your employee benefits plan. Are you looking to set yourself apart from the competition to attract and retain top talent? Or are you looking to attract a certain type of employee within your organization? All of these will factor into the proposals that our team will suggest.

Your Existing Benefits Plan Details - For clients that are looking to ‘shop’ their employee benefits plan, or in search of a new provider, the same process applies and the same information is required. Additionally, you will need to provide us with the details of the existing employee benefits plan and the claims history.

Why? Realistically, there is simply no way to accurately quote apples to apples, without that information. Plan costs will vary depending on what they include or do not include, and how well an existing plan is performing in relation to its costs. For instance, if a client is looking for a new insurance provider, but has a very high claims history which is not reflected in the current cost of the existing plan, a rate increase will likely be inevitable, no matter the insurer. With the right information in hand, our team at BenefitDeck can spot this issue in advance and discuss some other cost-cutting options with the client, if increasing renewals rates are of concern.

If there are other reasons for wanting to consider a competitive market tender, having an open discussion about objectives and what a client might be lacking with their existing provider will help our team determine which insurers would best meet their needs.

Get Your Accurate Employee Benefits Quote from BenefitDeck

While some companies show hesitancy when asked to provide the above information, all information remains completely confidential. If for any reason, the client chooses to forgo our services or any quote, all information is shredded and permanently deleted. We honour the privacy of our clients and would not do anything to jeopardize their trust.

If you are looking to get an accurate proposal for an employee benefits plan, you will need to provide some pertinent company information upfront. Not only will this give you a more realistic idea of how much your benefits plan will cost, but it will also help you avoid any unforeseen cost increases upon implementing the plan once that information is required anyways. To get an accurate proposal on an employee benefits plan that meets your needs, contact us today.