The short version
- Small group coverage can generally be bought at any point in the year, so a renewal does not lock you in for 12 months.
- Keep the current plan in force while you shop, so no employee has a gap in coverage.
- Ask about deductible credit and the termination notice before you choose a new start date.
Yes, you can change plans after your renewal
Federal rules require an insurer in the group market to let an employer buy coverage at any point during the year. Source: 45 CFR 147.104. Washington's own small group renewal notice puts it plainly: generally, you can buy coverage any time throughout the year. Source: Washington OIC small group renewal notice template.
So renewing on January 1 does not commit you to that plan until next January. You can renew to keep everyone covered, then move to another carrier, a level-funded plan or an association plan on the first of a later month. The same OIC notice explains that new coverage can start on the first of the following month once employees enroll and the premium is paid by the carrier's cutoff.
One limit applies. For most of the year, a small group insurer can require you to meet its participation and contribution rules. A group that cannot meet them can still enroll during the annual window from November 15 to December 15, for coverage starting January 1. The same federal rule sets that window.
Why it feels too late, and usually is not
Most employers treat the renewal date as a deadline because that is how renewals are presented. Rates can arrive only a few weeks before the renewal date, the payroll company or broker forwards them with a short reply-by date, and signing feels like the only choice.
Short timelines happen for ordinary reasons. The carrier released rates late, the paperwork sat in an inbox, or the renewal was handled by a payroll company that bundles benefits with payroll and does not shop the market. Whatever the cause, you were asked to decide before you could compare.
The fix is to split it into two decisions. First, keep coverage in place so nobody loses it. Second, take the time you need to compare real alternatives, then move when you are ready.
If your renewal deadline is days away
- Let the current plan renew. Many small group plans continue automatically if you do nothing; the state's template for that case is titled "We Are Continuing Your Employee Health Coverage." Confirm with the carrier what you need to pay and sign.
- Get the renewal in writing. Ask for the renewal rates by employee, the plan summaries and the census the carrier used.
- Ask for alternatives from someone who can quote the whole market. Include other carriers' small group plans, level-funded options and an association plan if your business qualifies.
- Pick a target start date. The first of next month is often realistic once quotes are in hand. Leave time for employees to enroll.
Our employee census page shows what we need to quote, and how to send it securely.
Five things to check before switching mid-year
| Check | Why it matters |
|---|---|
| Deductibles and out-of-pocket totals | If you switch partway through the plan year, what employees have already paid toward their deductible usually starts over unless the new carrier gives credit. Ask before you pick a start date. Switching early in the year limits the effect. |
| Termination notice | Your current contract sets how to cancel and when coverage ends, usually at the end of a month. Line it up so the new plan starts the next day. |
| Pre-tax payroll elections | Cafeteria plan rules generally let employees change their pre-tax elections when the employer changes the coverage offered. Check your plan document. Source: 26 CFR 1.125-4. |
| Doctors and prescriptions | Check the providers and prescriptions your employees rely on in the new plan's directory and drug list. The state's renewal notice lists the same checks. |
| Care in progress | Employees in the middle of treatment, a pregnancy or a planned surgery need extra attention. Ask the new carrier how it handles a transition of care. |
If your benefits come through a payroll company or PEO
Some payroll companies simply pass along a carrier's renewal. Others, called professional employer organizations or PEOs, sponsor the health plan themselves and enroll your employees in it. The difference matters.
If the plan is in your company's name, the steps above apply. If a PEO sponsors the plan, your timing comes from the PEO contract, so read its termination terms before you set a start date. In most cases you can keep your payroll service and move only the health plan. Payroll and benefits do not have to come from the same company.
Moving the plan does not have to mean more work for your office. We set up online enrollment on Employee Navigator at no added cost from our agency, and some payroll systems, including Paychex, connect to it.
Options to compare against the renewal
- Other carriers' small group plans. Each carrier files its own rates, so the same census can price differently elsewhere.
- Level funding. It is underwritten on your group, so it can come in lower, similar or higher. See level funding versus your 2027 renewal.
- An association plan if your business qualifies. See our association plan comparison.
- A different plan design, such as a higher deductible paired with a health reimbursement arrangement.
- An ICHRA or QSEHRA in place of a group plan. See group health versus ICHRA and QSEHRA.
For context, Washington's insurance commissioner approved an average increase of 16.7% for 2027 small group plans. Source: Washington OIC. Your own renewal may be above or below that average.
A realistic timeline
| When | What happens |
|---|---|
| Now | Keep the current plan in force. Request the renewal details and send a census for quotes. |
| About 1 to 2 weeks | Quotes come back. Compare employee costs, networks, prescriptions and the company's cost side by side. |
| Decision | Choose a plan, sign the application and set the start date for the first of a month. |
| Before the start date | Employees enroll, payroll deductions are updated and the current plan is cancelled effective the day before the new plan starts. |
Carriers set their own application cutoffs, so confirm the dates for the plan you choose.
Common employer benefits questions
Can we change medical plans after our group plan has renewed?
Yes. In Washington's small group market, an employer can generally buy coverage at any time of year, subject to the carrier's participation and contribution rules. Many employers renew to avoid a gap, then move on the first of a later month.
Do employees lose what they paid toward their deductible if we switch mid-year?
Often, unless the new carrier gives deductible credit. Ask about credit before you choose a start date, and switch as early in the plan year as you can.
Our payroll company handles our benefits. Can we move the health plan and keep our payroll?
Usually. If the plan is in your company's name, you can move it and keep your payroll provider. If a PEO sponsors the plan, check the PEO contract's termination terms first.
What if we cannot meet a new carrier's participation requirement?
Small group carriers must accept groups that miss participation or contribution rules during the November 15 to December 15 window, for coverage starting January 1. Outside that window, they can apply those rules.
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