Video Summary
In this meeting, Allison Brown from Thorpe Benefits and Roger Thorpe, President of Thorpe Benefits, discuss question number seven in their series of top 10 questions for developing a successful benefit plan. The key topic is the importance of being prepared for upcoming rate changes and forecasting future costs. Roger emphasizes the necessity of accurate budgeting and projections to avoid difficult discussions with the finance team. Allison explains their process of running regular reports and conducting a full renewal mockup at the nine-month mark, which allows for proactive decision-making. They highlight the importance of accurate projections, typically within a few percentage points of the actual renewal. The discussion also covers the need for considering various options when facing potential increases, such as changes to premium share, claim design, or plan design. They stress the importance of early preparation for communication and messaging to employees about any changes. Both speakers agree on the critical nature of paying attention to claims throughout the year and incorporating forecasting as a regular step in the process.
Chapters
Introduction and context of the discussion
Allison Brown introduces herself and Roger Thorpe, explaining that they are continuing their series on the top 10 questions for developing a successful benefit plan. They focus on question number seven: being prepared for upcoming rate changes and forecasting future costs.
Importance of accurate budgeting and projections
Roger Thorpe emphasizes the critical nature of accurate budgeting and projections. He mentions that the finance team typically requires benefit cost anticipations in advance of the fiscal year, and inaccurate projections, especially if too low, can lead to uncomfortable discussions.
Process of forecasting and renewal mockup
Allison Brown explains their process of running regular reports and conducting a full renewal mockup at the nine-month mark. This allows for a fairly accurate projection into the renewal period, providing six months to make decisions and have discussions about potential plan changes.
Accuracy of projections and proactive planning
Roger Thorpe discusses the accuracy of their projections, typically within a few percentage points of the actual renewal. He emphasizes the advantage of having time to consider options when facing potential increases, such as changes to premium share, claim design, or plan design.
Importance of communication and messaging
Roger Thorpe highlights the significance of building communication and messaging strategies early. He suggests considering how changes would feel from an employee’s perspective and potentially balancing benefit reductions with enhancements in other areas.
Conclusion and recommendation
Allison Brown summarizes the discussion, emphasizing the importance of being aware and prepared. She strongly recommends that those not currently paying attention to their claims throughout the year should incorporate this as a regular step in their process.