Gas and welding distributors are facing one of the most challenging health insurance renewal seasons in a decade. Medical cost increases in the 20 to 30 percent range are putting significant pressure on businesses to manage expenses without sacrificing employee benefits. Many companies feel stuck between raising deductibles and out-of-pocket costs, which often results in employees paying more for less coverage.
In this environment, waiting for the annual renewal cycle to review health plans is no longer enough. Off-cycle health insurance reviews offer an opportunity to explore innovative solutions tailored to distributors’ unique needs, helping control costs while maintaining competitive benefits. Here are five ways these reviews can benefit your business.
#1: Address Rapidly Rising Medical and Prescription Costs
Medical and prescription drug costs continue to rise sharply, driven by an increase in million-dollar-plus claimants and escalating drug prices. These rising expenses create significant challenges for distributors trying to maintain affordable health plans. Off-cycle reviews allow companies to proactively identify cost drivers and implement strategies to manage these increases before renewal deadlines.
By addressing these cost pressures early, distributors can avoid last-minute, reactive decisions that often shift more costs to employees. Proactive reviews help maintain plan stability and protect employee benefits, reducing frustration on both sides.
#2: Tailor Benefits for a Unique and Diverse Workforce
Gas and welding distributors face a workforce that spans multiple generations, with varying health needs and preferences. Additionally, industry consolidation and competition for skilled talent add complexity to benefit design. Off-cycle reviews provide an opportunity to evaluate whether current plans meet the evolving needs of this diverse workforce.
Customizing benefits based on workforce demographics helps increase employee engagement and satisfaction. This targeted approach supports retention and productivity by ensuring employees have access to meaningful benefits that align with their life stages and priorities.
#3: Leverage Benchmarking and Claims Data for Smarter Decisions
Benchmarking health plans against similar companies by size, location and industry is essential to understanding how a distributor’s offerings compare in terms of design, premiums and contributions. Off-cycle reviews enable companies to use this data to identify gaps and opportunities for improvement.
In addition, detailed claims analysis during off-cycle reviews uncovers specific cost drivers and areas where vendors or point solutions can reduce expenses. This data-driven approach empowers distributors to make informed decisions that improve plan performance and control costs effectively.
#4: Explore Innovative Funding and Plan Design Options
Traditional fully insured plans may no longer be the best fit given today’s cost pressures. Off-cycle reviews allow distributors to explore specialized funding strategies such as carving out stop-loss and pharmacy benefits for self-funded groups. These approaches can reduce costs while maintaining employee access to preferred networks.
Distributors can also consider partially self-funded or level-funded plans, either bundled or unbundled, to gain greater flexibility in managing expenses. Evaluating these innovative options off-cycle helps companies implement solutions that better align with their financial goals and workforce needs.
#5: Enhance Overall Value with Ancillary Benefits
Ancillary benefits like dental, vision and life insurance add important value to a health plan and can improve employee satisfaction. Programs such as the GAWDA benefits program offer these coverages with savings of about 10 percent, plus access to technology solutions at no cost.
Including ancillary benefits in off-cycle reviews helps distributors build a more comprehensive and attractive benefits package. This holistic approach supports employee well-being and financial security, strengthening the company’s ability to attract and retain top talent.
Final Thoughts
Given the ongoing challenges in the health insurance market, gas and welding distributors cannot afford to wait for their annual renewal to evaluate their plans. Off-cycle health insurance reviews provide a vital opportunity to explore innovative solutions, control rising costs and tailor benefits to the unique needs of their workforce.
For expert guidance, contact our Gas & Welding team to help you navigate this complex process smoothly and successfully.
Elizabeth Letke
Liz Letke is a Senior Vice President for Horton’s Employee Benefit Solutions. In this role, Liz is responsible for providing expert employee benefits consulting, bringing new clients on board, and servicing and retaining existing clients. She is part of a team of employee benefits-focused specialists dedicated to delivering innovative healthcare solutions to employers.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
