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Upcoming Benefit Rate Renewal

September 14, 2021

Benefits

Like many things in life—mortgages, car leases or cell phones- after some time, you have to renew your contract. The same holds true for our group benefits plan. A benefits plan renewal typically occurs annually, however, because our contract with SSQ commenced in 2019, it has been three years since we last went through this process. As you will see below, we will be in touch with more information in the coming weeks. Stay tuned, but feel free to reach out should you have questions or concerns.

Here’s how the process works:

Step 1 THE INSURER (SSQ, to become BENEVA) PROPOSES A NEW RATE BASED ON:
  • AOMBT's claims experience (cost of actual claims by group members. Short term disability, extended health care, and dental care are all experience rated)
  • The impact of inflation
  • The cost of new medicines
  • AOMBT's demographic makeup
  • SSQ's practice re: reserve funds (how much needs to be set aside in case of unexpected costs)
Step 2 AOMBT BENEFITS CONSULTANT (GALLAGHER) NEGOTIATES THE RATE AND ENSURES:
  • The proposal aligns with AOMBT plan philosophy and needs of our diverse members
  • It is sustainable for the future
  • It is a reasonable rate change for members
  • It aligns with AOMBT claims experience
  • Negotiations on behalf of AOMBT members have been thorough
Step 3 AOMBT REVIEWS THE PROPOSAL AND CONSIDERS:
  • If modifications need to be made to the proposed plan
  • If it would be beneficial to go to market for a different provider (usually a process done every 5-7 years)
  • If we are comfortable accepting the rates as presented by the consultant
Step 4 TRUSTEES REVIEW THE PROPOSAL AND ASK:
  • Is the plan reasonable in context of the claims experience, current climate, and consultant's reasons for accepting the proposed renewal?
  • Do we accept or decline? (If the proposal is declined, the insurer is asked to present another offer for further review. Because of the negotiation that occurs in Step 2, the proposal is typically acceptable).
Step 5 MEMBERS
  • Information about changes to the plan and impact on premiums is shared with members by AOMBT well before the rate renewal takes place on October 1, 2021.