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The 56-Page Renewal Nobody Reads – Except for the Team @CorpStrat

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Every year it shows up the same way. A PDF lands in the inbox about 60 days before the effective date. Fifty-six pages. Somewhere on page four is the number that actually matters — the rate increase — and the other fifty-two pages are boilerplate nobody will ever open.

Here’s what happens next in most small companies: someone glances at the increase, mutters something unprintable, decides it’s “not that bad compared to last year,” and hits accept. Renewal done. Back to running the business.

We understand the impulse. Health insurance for a company under 100 employees feels like a menu with three items on it, all overpriced. Why spend a week analyzing something you can’t change?

Except that premise is wrong. There are more real, usable choices in the small group market right now than there have been in years. Most employers simply never see them, because nobody ever put them side by side on one page.

What You’re Really Saying When You Renew As-Is

When you renew as-is, you aren’t making a decision. You’re declining to make one. You’re saying that whatever plan design was chosen three or four years ago — under different circumstances, with a different headcount, a different age mix, and a different payroll — is still the right answer today.

It usually isn’t. Companies change. Your census changes. Networks change. Carrier pricing strategy changes year to year, and the carrier that was uncompetitive for your group last year may be buying business this year.

The renewal letter will never tell you any of that. It isn’t designed to. It’s designed to be accepted.

What a Real Renewal Review Looks Like

This is the work a second set of eyes should be doing on your renewal — every year, not just the years the increase is ugly.

Run the Full Market, Not Just the Incumbent

Alternate carriers, yes — but also the other plans inside your current carrier that you were never shown. There is almost always a plan one rung down that costs meaningfully less and is nearly indistinguishable to employees.

Look Hard at Network Options

Narrow and tiered networks aren’t the compromise they were ten years ago. In Los Angeles, some of the smaller networks include exactly the medical groups your employees are already using. If your team is concentrated in one geography, you may be paying a premium for hospital access in counties nobody on the payroll lives in.

Take Bronze Plans More Seriously

Bronze plans have a reputation problem. But a properly structured high-deductible plan opens the door to a Health Savings Account — and the premium savings frequently exceed what an employer would have to contribute to employee HSAs to make people whole. Employees end up with tax-free money they own and keep. The company spends less. That isn’t a downgrade. It’s a redesign.

Layer In the Pre-Tax Tools

Section 125, FSAs, dependent care, and Health Reimbursement Arrangements let you close the deductible gap with dollars that never get taxed. An HRA lets you buy a leaner plan and put employer money behind the specific expenses that actually hit employees — instead of buying a rich plan for everyone to protect the few who use it.

Model Contribution Strategy, Not Just Plan Design

How cost is split between employee-only and dependent tiers can move total spend as much as changing carriers. Most employers have never modeled it.

Put Level Funding on the Table

For groups of roughly 25 and up with a reasonably healthy census, level-funded plans are worth a serious look. They give you transparency into where the money actually goes, the ability to share in savings when claims run low, and stop-loss protection so a bad year doesn’t sink you — often with the same carrier name on the ID card. It isn’t right for everyone, but it belongs in the analysis.

A Word About the Noise

There’s a lot of chatter right now about ICHRA. Some of it is useful. Much of it makes employers feel the only choices are “do nothing” or “blow the whole thing up.”

ICHRA — reimbursing employees to buy their own individual coverage — sounds elegant on a webinar. In California, it is largely impractical. The individual market here has thin networks, limited carrier participation in many counties, and pricing that punishes older employees. You’re taking people out of a stable group pool and sending them to shop alone, and you’re taking on a compliance and administration burden to do it. We’ve reviewed it repeatedly for clients and it rarely survives the math.

The truth is that the majority of the savings we find comes from unglamorous work. Plan design. Network fit. Contribution modeling. Pre-tax structure. Boring, and it works.

Before You Accept This Year’s Renewal

Make sure your broker is looking under the hood. Not to sell you something — to tell you plainly what you’re currently buying and what the alternatives actually cost, side by side.

Worst case, you confirm you’re already in the right place and renew with confidence instead of resignation. Best case, you find real money.

We do this work every day for small and mid-sized businesses across Southern California. If you want a second set of eyes on your renewal before you accept it, reach out at Info@CorpStrat.com.

Stop Paying Full Price for Healthcare

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The IRS has built tools to help. Most people and many employers aren’t using them.

Whether you’re a business owner trying to do more for your team, or a professional paying too much out of pocket for care your insurance barely touches there are legitimate, IRS-approved ways to make your healthcare dollars go further.

Here’s the short version.

If You’re an Employee or Self-Employed Professional

Health Savings Account (HSA) — The one most people underuse. If you’re enrolled in a high-deductible health plan, you can contribute pre-tax dollars to an HSA and spend them tax-free on medical expenses. The money rolls over every year and can be invested. It’s the only account in the tax code with three tax breaks: deduction going in, tax-free growth, tax-free withdrawals for medical costs.

2025 limits: $4,300 individual / $8,550 family. If you’re 55+, add $1,000 more.

Flexible Spending Account (FSA) — If your employer offers one, you set aside pre-tax dollars each year to cover predictable expenses: copays, prescriptions, dental, vision, and more. Simple, automatic, and an immediate tax discount on spending you’re already doing. And, you don’t have to fund this account all at once, or in entirety.

What both accounts cover that surprises most people: out-of-network charges, specialty medications, chiropractic care, hearing aids, LASIK, orthodontia, and more all eligible expenses under IRS Section 213. Want to deduct more out of pocket expenses, this is a great tool.

If You’re a Business Owner or Employer

Health Reimbursement Arrangement (HRA) — Employers fund this; employees spend it tax-free. No premiums, no network. You reimburse employees for qualifying medical expenses, take the deduction, and they receive the benefit free of income and payroll taxes.

Executive Medical Reimbursement Plan — This is the one almost nobody talks about – and most CPA’s are surprised still exist. A business can select specific employees even just one and cover virtually all of their out-of-pocket medical expenses through a supplemental reimbursement plan. The employer deducts it. The employee receives it tax-free. No payroll taxes on either side.

What makes it especially powerful: it bypasses the 7.5% of income floor that limits personal medical deductions on individual tax returns. Dollar one is tax-advantaged. And unlike standard group health benefits, this type of plan can legally be offered to a select group a key executive, a partner, or a top performer without extending it company-wide.

Covered expenses include essentially everything the primary plan doesn’t: deductibles, copays, out-of-network bills, dental, vision, hearing, chiropractic, specialty drugs, psychiatric care, and more.

One provider we work with, BeniComp Select, has offered this since 1962. Pricing is transparent: $350/year per participant, then claims plus 12%. No monthly premiums. No renewal increases. You pay for what you use.

The Bottom Line

Most people leave these benefits unused not because they’re complicated, but because nobody put them on the radar. A quick review of your current benefit structure can reveal real tax savings and real coverage gaps worth closing.

What You Need to Know: Medicare Prescription Drug Plan Open Enrollment 2025

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Open Enrollment for Medicare Part D (prescription drug coverage) is here again, running October 15 – December 7, 2025, for the 2026 plan year. This year is especially complicated: some plans are disappearing, premiums are changing, and deductibles are shifting. If you (or a family member) rely on Medicare prescription drug coverage, here’s a roadmap to make sure you’re in the right plan for 2026.

Step 1: Go to Medicare.gov

The most reliable tool is right at your fingertips: Medicare.gov.

  • Click “Find Plans”
  • Enter your ZIP code, pharmacy, and your prescription drugs
  • Medicare’s tool will show you which plans cover your drugs, at what cost, and with which pharmacies.

This is critical — don’t guess. Plans differ dramatically in how they treat the same drug.

Step 2: Understand the Deductible Rules

For 2026, many California drug plans will come with a $615.00 deductible (that’s the amount you pay out-of-pocket before the plan starts sharing costs). But plans apply this deductible differently:

  • Some plans apply the deductible to all drug tiers (including generics).
  • Others apply it only to brand-name or higher-tier drugs.

Translation: If you mostly take Tier 1 or Tier 2 generics, you may find a plan where your deductible doesn’t apply — so you get co-pays right away.

Step 3: Compare Your Choices Before December 7

You must make your decision by December 7. After that, you’re locked in (or out) until the next Open Enrollment. Here’s what to look at when comparing plans:

  • Monthly premium (what you pay each month for the plan)
  • Deductible (what you pay before coverage kicks in)
  • Drug costs (your co-pay or coinsurance for each medication)
  • Pharmacy network (make sure your preferred pharmacy is covered)
  • Customer service reputation (some carriers are much easier to work with)

Step 4: Two Options Worth Highlighting in California

  • WellCare Value Script – This is typically the lowest-cost plan for many Californians. It offers low or $0 co-pays for Tier 1 and Tier 2 generics, which makes it attractive if you only take a few basic medications. $5.70 a month
  • HealthSpring (formerly CIGNA) Extra RX – likely the best bet for those with multiple drugs and access to some Teir 1 and Tier 2 drugs before the deductible. $70.60 a month
  • AARP MedicareRx Preferred – While more expensive, this plan usually has the broadest formulary (drug list) and better customer service. If you’re on multiple or brand-name medications, this plan may be worth the peace of mind. $165 a month

Step 5: Don’t Wait Until the Last Minute

Every year, people put this off until December and end up rushing. Do yourself a favor:

  • Run your drugs on Medicare.gov now.
  • Select a plan and enroll online – or you can call the carrier directly to discuss access to a specific drug.
  • Enroll before December 7 to avoid surprises.

A Word About Agents

Unlike Medicare Advantage or Medigap plans, Part D prescription drug plans are not agent-driven products. That means licensed insurance agents can’t really “fix” or “customize” your drug plan. Think of agents like people patching flat tires — we can advise you, but the enrollment is really up to you, directly through Medicare.gov or the plan.

Bottom Line

For 2025, Medicare drug coverage in California is more complex than ever. Some plans are disappearing, prices are shifting, and deductibles are higher. The good news: if you take 30 minutes to use the Medicare Plan Finder tool, you can make sure you’re not overpaying and that your drugs are covered the way you need.

Deadline: December 7, 2024. Don’t miss it.

5 Dangers of Not Getting an Employee Benefits Audit

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When was the last time you’ve had an expert help you do an Employee Benefits Audit? If you’re like most companies, the answer might be “never.” Many businesses stick with the same benefits plans year after year, making only minor adjustments here and there. While this might seem convenient, it can lead to several significant risks. Here are five dangers of not getting an Employee Benefits Audit:

1. Overpaying for Benefits

Without a regular audit, you may be paying more than necessary for your Employee Benefits. Plans that were competitive a few years ago might now be outdated and overpriced. By not reviewing and updating your benefits package, you risk spending more money for less value. This can directly impact your bottom line.

2. Inability to Customize According to Needs

Every company is unique, and so are its employees’ needs. Standard, one-size-fits-all benefits plans often fail to address the specific requirements of your workforce. An Employee Benefits Audit helps you identify gaps and customize your benefits package to better align with the needs of your employees. Without it, you may end up with a plan that cater to the varying needs of your team members.

3. Lack of Solid Customer Support

Issues with benefits plans are inevitable. When problems arise, you need quick and effective solutions. Big payroll companies often provide limited customer support, leaving you to navigate frustrating phone trees and automated systems. Without a dedicated team to assist you, resolving issues can become a time-consuming and stressful process.

4. Inadequate Coverage for Employees

Employee needs change over time, and so should their benefits. Without an audit, you might miss out on updating your plans to reflect current needs. This can lead to inadequate coverage, causing dissatisfaction and potential retention issues among your employees. Ensuring that your benefits package evolves with your team is crucial for maintaining a happy and healthy workforce.

5. Missing Out on Cost-Effective Solutions

The benefits landscape is constantly evolving, with new and more cost-effective solutions emerging regularly. Without an Employee Benefits Audit, you might miss out on opportunities to enhance your benefits while reducing costs. Staying informed about the latest trends and options ensures that you’re providing the best possible benefits at the best possible price.

Why CorpStrat® is the Solution

At CorpStrat®, we understand the importance of a thorough Employee Benefits Audit. Our team specializes in offering comprehensive audits to ensure you have the most effective and efficient benefits plan in place. We help you:

  • Identify and eliminate unnecessary costs.
  • Customize your benefits to meet your specific needs.
  • Provide exceptional customer support whenever you need it.
  • Ensure your employees have the coverage they truly need.
  • Stay ahead with the latest, most cost-effective benefits solutions.

Don’t let outdated benefits plans put your company at risk. Contact us today to learn more about how an Employee Benefits Audit can benefit your business. Let’s have a conversation and explore how we can optimize your employee benefits experience.

Why You Deserve Better Employee Benefits

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Are your Employee Benefits bundled with one of the big payroll companies like Paychex, Gusto, ADP, or Zenefits? If so, there’s a good chance you’re not getting the service you deserve. These giants often push businesses into rolling their employee benefits with them, banking on the fact that most people aren’t fully aware of what they need or deserve. This approach boosts their profits but leaves you and your employees with subpar service.

The Downside of Big Payroll Companies

When it comes to Employee Benefits, big payroll companies typically don’t think outside the box. They struggle to design creative solutions tailored to your company’s unique needs. And when problems inevitably arise, you’re often left navigating a frustrating phone tree, rarely getting to speak with a real person who understands your account. With over 30 years in the business, we’ve seen this too often, and we know you deserve better.

Why CorpStrat® is Different

At CorpStrat®, we believe in providing top-notch service tailored to your specific needs. Here’s what sets us apart:

  • Personalized Service: Whenever you call us, you’ll speak with a real person who knows the ins and outs of your account. No more frustrating phone trees.
  • Creative Solutions: We think outside the box to design employee benefits plans that fit your company’s unique requirements, whether you have a small team or a large workforce.
  • Commitment to Care: Our commitment to service is unparalleled. We treat our clients with the same dedication and care we would give to our own family members. Over time, our clients become friends and family to us.
  • Proven Expertise: As one of the top insurance brokers in California, we have the expertise and passion to deliver exceptional results.

If you’re unhappy with your current employee benefits provider, why not get a second opinion? At CorpStrat®, we’re more than happy to review your current plan, no strings attached. We’d love the opportunity to discuss how we can improve your employee benefits experience.

Reach out to us today. Let’s have a conversation and explore how we can better meet your needs. Your employees deserve the best, and so do you. Choose CorpStrat® for a benefits experience that truly cares.

7 Signs Your Company Needs an Employee Benefits Audit

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Are you wondering if your Employee Benefits plan is truly hitting the mark? It’s time to reconsider how you approach delivering employee benefits. Year after year, many businesses let their employee benefits package remain unchanged. This means they’re offering tired, unattractive benefits that don’t compete well in today’s job market.

But here’s the kicker: if this sounds familiar, you might be missing out big time. That’s where our Employee Benefits Audit comes in.

What exactly is an Employee Benefits audit?

An Employee Benefits audit is your ticket to a benefits package that not only meets but exceeds your employees’ expectations. We’ll dive deep into your current offerings, ensuring they’re tailored just right for your unique needs and the needs of your team.

Now, change can be daunting. But with the incredible technology available today, it’s worth it to shake things up a bit. And don’t worry, we’ll be right there beside you, guiding you through every step of the process.

All Pros, No Cons

And the best part? When you invest in an Employee Benefits Audit, it’s all pros and no cons. Either we uncover ways to save you money and enhance your benefits package, or we confirm that your plan is already top-notch. It’s a win-win situation for you and your team.

So, what are the signs that your company needs an Employee Benefits Audit? Here are our top seven signs:

  1. High Employee Turnover: If your turnover rate is higher than industry average, it could indicate dissatisfaction with your benefits package.
  2. Employee Dissatisfaction: If employees frequently express discontent with their benefits, it’s time to reassess.
  3. Decline in Morale and Engagement: Notice a lack of enthusiasm? Your benefits package could be a contributing factor.
  4. Company Growth or Demographic Changes: Changes in workforce size or composition may necessitate adjustments to your benefits.
  5. Competitive Pressure: If competitors offer more attractive benefits, you risk losing talent to them.
  6. Compliance Concerns: Encountering compliance issues? Your benefits package may not be up to snuff.
  7. Alignment with Company Goals: Unsure if your benefits package supports your long-term objectives? It’s time for a review.

If any of these signs resonate, it’s time to act. Let’s work together to craft a benefits plan that exceeds your wildest expectations.

Your employees deserve the absolute best, and with our Employee Benefits Audit, you can give it to them. Don’t settle for mediocrity—contact us today for a free consultation and let’s make it happen!