Renewal Impact Calculator
Renewal Impact Calculator
Project the multi-year cost trajectory of your health plan renewal and identify the break-even point for alternative funding strategies.
Renewal action path
Turn your renewal model into a decision plan
Use your renewal projection to prioritize the cost drivers and market checks worth addressing before your next carrier conversation.
- 1Review model
Model the renewal exposure
Capture the cost trajectory and the assumptions leadership needs to see.
- 2Start benchmark
Benchmark plan costs and design
Put your renewal in relevant market context before accepting the carrier narrative.
- 3Open action plan
Build your Benefits IQ action plan
Save the highest-impact opportunities and keep the renewal work moving.
Your action plan ranks opportunities by impact and urgency as you complete tools.
View Benefits IQ action planWhat this tool does: This calculator shows you the compounding financial impact of annual health plan renewal increases — year by year, in real dollars. It also breaks down your current premium into claims costs versus carrier administrative load, revealing how much of your premium goes to actual healthcare versus insurer overhead. Use it to build the business case for exploring self-funding or other cost-containment strategies before your next renewal conversation.
Current plan data
Plan Basics
Total employees enrolled in your health plan.
Per-employee per-month combined premium (employer + employee). Find this on your carrier invoice.
The percentage of total premium your organization pays. The remainder is deducted from employee paychecks.
Projection parameters
Renewal Assumptions
The annual percentage increase your carrier is proposing. National average is 7–12%. Use your actual renewal quote if you have one.
How many years to project forward. 3–5 years is typical for strategic planning.
Claims as a percentage of premium. Industry average is 80–85%. Find this in your carrier's annual utilization report.
Current Annual Cost
$1,560,000
total premium today
Year 5 Cost
$2,512,396
projected total
Cumulative Increase
$952,396
over 5 years
Employer Annual
$1,170,000
75% share
Cost Per Employee
$5,850
employer PEPY
Self-Fund Savings Est.
$98,280
admin load reduction
How to read these results
Year 5 Cost — what your total annual premium will be if renewal increases continue at the current rate. This is a compound calculation, not a simple multiplication.
Cumulative Increase — the total additional dollars you'll spend over the projection period compared to today's cost. This is the number to put in front of leadership.
Self-Fund Savings Est. — approximately 35% of your carrier's administrative load (the non-claims portion of your premium) that could be recovered by transitioning to a self-funded arrangement. This is a conservative estimate — actual savings vary by TPA, stop-loss market, and plan design.
Cost Per Employee (PEPY) — employer cost per employee per year. Useful for benchmarking against industry peers and tracking year-over-year trends.
10% annual trend — compounded
Year-by-Year Projection
| Year | Total Premium | Employer | Employee | Increase vs. Base |
|---|---|---|---|---|
| Base (Today) | $1,560,000 | $1,170,000 | $390,000 | — |
| Year 1 | $1,716,000 | $1,287,000 | $429,000 | +$156,000 |
| Year 2 | $1,887,600 | $1,415,700 | $471,900 | +$327,600 |
| Year 3 | $2,076,360 | $1,557,270 | $519,090 | +$516,360 |
| Year 4 | $2,283,996 | $1,712,997 | $570,999 | +$723,996 |
| Year 5 | $2,512,396 | $1,884,297 | $628,099 | +$952,396 |
Each year's premium is calculated by applying the renewal rate to the prior year's total — not the original base. This compounding effect is why a 10% annual increase results in a 61% total increase over 5 years, not 50%.
Where your premium dollar goes
Premium Composition
Self-funding opportunity: The 18% carrier administrative load ($280,800/year) represents overhead that self-funded employers largely eliminate. Transitioning to self-funding could recover approximately $98,280/year — without changing your benefits design or provider network.
This estimate assumes 35% of the admin load is recoverable. Actual savings depend on TPA fees, stop-loss premiums, and plan administration costs. Most employers with 75+ employees see meaningful savings from self-funding.
Important: Projections assume a constant renewal rate
Actual renewals vary by claims experience, carrier, and market conditions each year. The self-funding savings estimate is illustrative — actual savings depend on your specific TPA, stop-loss market, and plan design. Use these figures for strategic planning and renewal negotiation preparation, not as financial commitments.
Is self-funding right for your organization?
The 126-Point Benefits Benchmark includes a full funding strategy analysis — comparing fully-insured, level-funded, and self-funded options based on your actual plan data.
Your Analysis Is Ready
Projected 5-year premium increase: $952,396
Your PDF includes
What should I do next?
Projected 5-year premium increase
$952,396
Run the Benefits IQ Checkup™
Take actionGet a comprehensive assessment of your plan design, funding strategy, and cost drivers in 10 minutes.
Benchmark your costs against peers
Take actionSee how your PEPM, claims ratio, and renewal rate compare to employers your size in your industry.
Assess your self-funding readiness
Take actionSelf-funded employers largely eliminate the carrier admin load driving your renewal. See if you're ready.
Compare TPA vendors
CompareIf you move to self-funding, your TPA choice is the most important decision. Compare your options now.
Guided journey
My renewal is too high
A step-by-step plan to fight back against your renewal increase.
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Independent review
Corry Hull, REBC® CSFS®
Independent benefits consultant · Health Rosetta Advisor
Want a second set of eyes on this?
Your estimated savings opportunity is $952,395.6/year.
Corry Hull, REBC® CSFS®, reviews results like these with employers regularly. Independent analysis, fully disclosed compensation — just an honest read on what the numbers mean for your plan.
Send Corry a noteNo vendor affiliations · Independent analysis · Fully disclosed compensation
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Tool outputs are for informational and comparison purposes only. Results do not constitute a recommendation or endorsement of any vendor or approach. Verify all data independently and consult a qualified benefits advisor before making procurement or plan decisions. AI policy
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