If you've recently received an email about a quarterly report and are unsure what it is, you’ve come to the right place! In this post, we'll dive into what a quarterly report is and provide all the info you need to understand this vital document for managing your company's benefits plan.
What is a quarterly report, and why am I receiving one?
A quarterly report offers insights into your company's benefits plan performance during your experience period. The experience period commences when your benefits take effect.
For instance, if your benefits began on January 1, 2023, your experience period runs from January 1, 2023, to December 31, 2023. This timeframe is divided into quarters, leading to four reports per experience period, delivered straight to the plan administrators' inbox.
These reports are designed to help you monitor and assess your plan's performance over time, preventing any surprises when renewing the plan. Each quarterly report also offers the opportunity to arrange a meeting with your Portfolio Rep. In these meetings you can delve deeper into the data and fully comprehend its implications.
Components of a Quarterly Report
This notable date signifies when your insurance plan is due for renewal. You should plan to have a conversation with your Portfolio Representative around this time. This conversation will offer insights into your plan's performance and what you can expect for rates in the upcoming period.
|Target Loss Ratio
The insurer aims to keep claims costs equal to a fixed percentage of the premium. The Target Loss Ratio is essentially the insurer's break-even point, with the remaining percentage allocated for expenses, operational costs, and profit.
|Paid Loss Ratio
|This is calculated by taking the claims paid and dividing them by the premiums paid. You can compare this percentage to your Target Loss Ratio (TLR %) to see if your plan is performing below, on, or above target.
|This is the cost you pay to your insurance carrier to secure coverage for your employees' benefits, ensuring access to essential services.
|Submissions made by employees seeking reimbursements for incurred expenses covered in their benefits plan. For instance, when an employee visits a massage therapist, they may submit a claim to their insurance carrier for reimbursement.
|These offer a clear view of your plan's performance and highlight any trends. For instance, they can help to identify an increase in health claims which can provide a valuable understanding of the plan's dynamics and potential implications.
Curious about benefits terminology? Check out our Benefits Glossary.
Why are these reports important?
The purpose of these reports is to help you feel more confident about understanding how your benefits plan is performing. These reports make it easy to see how your employees are using their benefits.
You might spot trends, like more people using health benefits and fewer people using dental benefits, or the other way around. Once you know this, you can have a more productive chat with your Portfolio Rep to tweak your plans in ways that make a real difference for your employees.