Gabriel Esposito· Senior Compensation Analyst, Halcyon Financial Group
Asked in Benefits & Wellbeing ·
IT services company based in Pune with about 8,500 employees, plus parents covered on a co-pay basis. Our group medical renewal has come back at a 22% increase. The claims ratio last year was 104%, so I understand some increase is due, but the broker is saying medical inflation alone accounts for 14 points.
Parental claims are 47% of the total from about 30% of lives. The suggestions so far are a higher co-pay on parents, room rent capping, or moving parents to a voluntary employee-paid policy.
What increases are others seeing this cycle, and which lever did least damage to how employees feel about the plan?
9 helpful · 5 insightful · 2 replies · 329 views · 5 following
People Analytics Lead, Silverline Media
We were quoted 19% on a claims ratio of 96%, settled at 13% after going to three insurers. 12 to 14% for inflation is what every broker is quoting this year, so I do not think you are being singled out.
On levers: we raised parental co-pay from 10% to 20% and it was resented but accepted. Making parental cover voluntary is the one I would avoid. A competitor of ours did it and it featured in exit interviews for a year.
Sales Compensation Manager, Calibre Software
Room rent capping looks harmless and is not. With proportionate deductions, an employee who takes a room above the cap can find the whole bill scaled down, not just the room charge. We had a very public case on an internal forum. If you do it, put worked examples in the communication and get the hospital desks briefed.
