Offering competitive medical benefits is critical for small businesses aiming to attract and retain top talent. But how do you know if your health plans are truly competitive? That’s where benchmarking comes in.
Benchmarking helps you compare your offerings to what similar businesses provide, ensuring you’re not overspending or underdelivering. Here’s how small businesses can use benchmarking to make smarter, more strategic decisions about medical plans.
What Is Medical Plan Benchmarking?
Medical plan benchmarking is the process of evaluating your company’s health insurance offerings against market standards. This includes comparing plan design, cost-sharing, premiums, and coverage features with similar companies based on size, industry, and location.
It’s not about copying what others are doing — it’s about understanding where your benefits stand in a competitive landscape and identifying opportunities to improve.
Why Benchmarking Matters for Small Employers
Small businesses often face tight budgets and limited HR resources. Without benchmarking, you may:
- Offer outdated plans that don’t appeal to current talent
- Spend too much on premiums without seeing ROI
- Miss out on affordable innovations like telemedicine or tiered networks
With effective benchmarking, you can design smarter plans that balance cost and care, support employee satisfaction, and help your business grow sustainably.
What to Measure When Benchmarking Medical Plans
When evaluating your medical plan, focus on these core components:
- Monthly Premiums (employer vs. employee share)
- Deductibles and Out-of-Pocket Maximums
- Network Coverage and Access to Providers
- Prescription Drug Coverage and PBM Strategy
- Enrollment Participation Rates
- Value-Added Services (e.g., telehealth, wellness programs)
WellSpring’s Clarity™ Benchmarking platform simplifies this process, providing you with actionable insights and side-by-side plan comparisons.
How to Get Accurate Benchmarking Data
There are a few ways to access benchmarking data:
- National and regional survey reports
- Industry-specific benchmarking tools
- Consulting with benefits advisors like WellSpring
We provide small businesses with personalized benchmarking reports based on real-time data, so you can see how your plans compare — not just against national averages but against peers in your exact market segment.
What to Do With the Results
Once you’ve benchmarked your plan, it’s time to take action. You may choose to:
- Adjust employer/employee cost sharing
- Add or remove plan tiers
- Introduce supplemental health benefits
- Reevaluate carrier networks or funding strategies
Benchmarking isn’t a one-time task — it’s something you should do annually to ensure your plans evolve as the market and your business do.
Final Thoughts: Build a Competitive Edge
For small businesses, staying competitive doesn’t always mean spending more — it means spending smarter. Benchmarking gives you the clarity and confidence to make informed benefits decisions that align with your goals and workforce needs.
Want to benchmark your current medical plans?
???? Schedule a consultation with WellSpring and get a free benchmarking snapshot customized for your business.