Employee benefits have a direct, measurable impact on employee retention. When benefits feel relevant, clear, and supportive, employees report higher satisfaction, stronger loyalty, and greater trust in their employer. . They signal that an organization is invested in an employee's success, which saves massive turnover costs which average between $10,200 and $23,000 per employee.

Insurers usually mandate a 75% participation rate among eligible employees. The employer in most cases, must split the premium 50% with the employee. In this senario, an elligible employee works at least 30 hours per week and has no other major medical coverage. Participation rate requirements may be waived if initial coverage starts on January 1st. If the employer chooses to pay the entire premium, the participation must be 100%.

Generally, rates are locked in for 1 year until the next open enrollment. Some Carriers will negotiate a higher rate and lock it in for two or three years.

The two primary types of rating methods used in group underwriting are composite and member level rating. If the employer chooses composite rating the group is rated as a pool. in this case, younger members may pay higher premiums depending on how many older members are present, and vice versa. If member level rating is chosen, each member is rated individually and risk is not spread across the pool.