Most employers evaluate their employee benefits strategy once a year — when renewal arrives. Premium increases are presented. Contribution strategies are reviewed. Plan design adjustments are discussed. But by the time renewal hits your inbox, the story has already been written. Renewal reflects a year’s worth of cost trends, claims activity, utilization patterns, and funding performance. The increase itself may be new — but the underlying drivers have been developing all year long. That’s why benchmarking before renewal can fundamentally change the conversation.
Renewal Is the Result — Not the Strategy
Healthcare cost pressures build continuously throughout the plan year:
* Medical claims accumulate
* Pharmacy spend fluctuates
* High-cost claimants impact loss ratios
* Demographics shift
* Utilization patterns evolve
When renewal arrives, carriers price based on this experience. At that point, many employers are reacting rather than strategically positioning themselves. Evaluating your market position before renewal allows for a more proactive approach.
What Benefits Benchmarking Provides
A structured benchmarking report compares your benefits program against similar employers based on:
* Company size
* Industry
* Geographic location
The primary focus is medical coverage — typically the largest driver of benefits spend — including:
* Average premium cost per employee
* Employer vs. employee contribution ratios
* Deductible and out-of-pocket ranges
* PPO vs. HDHP participation trends
* Funding model comparisons
Ancillary benefits such as dental, vision, life, disability, and voluntary offerings are also reviewed to ensure overall competitiveness and alignment. Benchmarking does not replace renewal negotiations. It strengthens them.
Why Market Context Matters
Two employers can look very similar on paper — same size, same region, same industry — yet have significantly different cost structures.
The difference often lies in:
* Plan design richness
* Contribution strategy
* Funding structure
* Participation mix
* Risk management decisions
Without market context, it is difficult to determine whether your program is:
* Competitive
* Over-designed
* Under-contributing
* Misaligned with your workforce
Benchmarking provides that context.
A Strategic Advantage Before Renewal
When employers benchmark before renewal, they enter renewal discussions with:
* A clearer understanding of where they stand
* Data to validate cost competitiveness
* Insight into contribution alignment
* Perspective on plan richness vs. market norms
* Fewer surprises
Instead of asking only, “What is our increase?” the conversation shifts to:
“How does our strategy compare to similar employers?”
That shift often leads to better, more confident decisions.
Advisory, Not Disruptive
Benchmarking is not about changing brokers. It is about validating strategy. Proactive benefits advisors view benchmarking as part of ongoing stewardship — ensuring clients are positioned appropriately throughout the year, not just during renewal season.
At PF Compass, we believe benefits consulting should extend beyond annual negotiations. Benchmarking is one of the tools we use to help employers make informed, data-driven decisions year-round — acting as strategic advisors rather than simply managing renewals.
Request a Complimentary Benefits Benchmarking Report
Renewal should not be the first time you evaluate your market position. Benchmarking before renewal provides clarity, confidence, and strategic advantage.
PF Compass offers a complimentary benchmarking report for employers who want objective market perspective before their next benefits renewal.
Based on your company size, industry, and geographic location, we provide comparative insight into:
* Medical premium competitiveness
* Employer contribution alignment
* Plan design positioning
* Ancillary benefit norms
* Funding strategy comparisons
For employers willing to share high-level plan details (confidentially), we can also provide a deeper cohort comparison that highlights how your program ranks among similar organizations. The process is simple, confidential, and requires no commitment.
If you would like to receive a complimentary benchmarking report or schedule a brief introductory conversation, contact our team!
Brian Honan | Partner
PF Compass Employer Guidance & Benefit Solutions
440 Route 22, E., Suite 190
Bridgewater, NJ 08807
Tel (973) 732-0697
