Benefit Renewals: How Employers Can Strengthen Their Benefits Package for the Year Ahead

9/16/2026 - By Judy Fryer

January 1 benefit renewals have a way of making their way to the top of every employer’s to-do list. As renewal information comes in, employers are often balancing several priorities at once: rising costs, employee expectations, competitive benefits and the practical work of getting ready for open enrollment.

A renewal does not have to be limited to deciding whether to accept the plan in front of you.

It can also be an opportunity to step back and ask: What could our benefits package look like next year?

Whether a renewal brings favorable news or a challenging increase, employers can use the renewal process to explore plan design, consider optional benefits and find ways to provide meaningful value to employees while managing costs. The right strategy will look different for every organization, which is why having a resource to brainstorm options can make a difference.

The Saltmarsh Summary

  • A benefit renewal is an opportunity to rethink your overall benefits package, not simply review the renewal terms.
  • Plan design and optional benefit plans can help employers balance employee needs, cost considerations and talent attraction and retention.
  • Saltmarsh can serve as a resource throughout the renewal and open enrollment process, from exploring benefit options to supporting administration and employee education.

Start Your Renewal With a Bigger Question: What Do Your Employees Need?

It is easy to approach renewal season with one question in mind: How much will our benefits cost next year?

That question matters, but it should not be the only one.

A stronger renewal conversation considers what your employees value, where your current benefits package may have gaps and whether there are opportunities to enhance the overall offering.

For example, an employer may be facing higher medical premiums but still want to maintain a competitive benefits package. Rather than viewing the renewal as a choice between absorbing the increase or passing more of the cost to employees, the employer could explore whether changes to plan design or additional benefit options could provide more flexibility.

That might mean considering tax-advantaged plans, supplemental benefit offerings or other options that complement the employer's existing package.

The goal is not to add benefits simply for the sake of adding benefits. It is to build a package that makes sense for your organization and the people you employ.

Explore Plan Design Before Simply Passing Costs Along

When renewal costs increase, employee contributions can become an obvious place to look for savings. But before shifting additional costs to employees, consider whether there are other ways to structure the benefit package.

Flexible spending plans are one example.

Saltmarsh supports a range of plan options, including:

  • Premium Only Plans (POP)
  • Medical Flexible Spending Accounts (MEDFSA)
  • Dependent Care Flexible Spending Accounts (DEPFSA)
  • Health Reimbursement Arrangements (HRA)
  • Health Savings Accounts (HSA)
  • Lifestyle Spending Accounts (LSA)
  • Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

Each option serves a different purpose, and not every plan will be appropriate for every employer. The value comes from understanding how the available options could fit together with an organization's existing benefits strategy.

For example, Saltmarsh's benefits materials illustrate how a Section 125 plan can create potential tax savings for both employers and employees. In one example, a 40-employee company with employees participating in medical and dependent care flexible spending arrangements generated an illustrative $11,320 in annual FICA tax savings. The example is not a benchmark or guarantee, but it demonstrates why plan design can be worth examining when evaluating the overall cost of a benefits package.

Employees can also benefit when eligible expenses are paid through pre-tax arrangements. In another Saltmarsh illustration, an employee contributing toward insurance premiums and flexible spending accounts saves $100 per month compared with the example without the pre-tax arrangement.

The takeaway is not that every employer should implement a particular plan. It is that renewal season is a good time to ask what options are available before deciding where costs should go.

Need another perspective on your upcoming renewal? Saltmarsh's Flexible Spending Plan Administration team can help you brainstorm potential plan designs and optional benefit options based on your organization's needs. The objective is to help you think through the possibilities before you finalize your benefits package.

Think of Saltmarsh as a Resource During Renewal

As you review your January 1 renewal, our team can help you explore options beyond simply accepting the renewal terms or passing costs along to employees.

We can plan design ideas and optional benefit plans that may strengthen your package, provide additional value to employees and support your goals for attracting and retaining talent. Consider questions like:

  • Could your plan design be improved?
  • Are there optional benefits that would add value for employees?
  • Are there ways to manage costs while maintaining a competitive benefits package?
  • What benefits could help with employee attraction and retention?

There is no one-size-fits-all solution. Our team can help you evaluate options based on your organization and workforce.

Support Beyond Plan Design

Saltmarsh can also support you through open enrollment with in-person, virtual meetings and health fairs, helping employees understand their benefit options. From plan design and administration to participant education, our team is available throughout the renewal process

Saltmarsh's Flexible Spending Plan Administration team can be part of that conversation.

Our certified professionals can assist with decisions ranging from plan design through ongoing administration, helping employers evaluate options while supporting their employees throughout the process. Services can include flexible spending plans, HRA, HSA and LSA administration, compliance documentation, Form 5500 preparation and filing, participant education and open enrollment support.

A renewal may start with a new premium quote, but it does not have to end there.

If you are preparing for a January 1 renewal, now is the time to start the conversation about what your benefits package could look like next year.

About the Author | Judy Fryer

Judy is a senior manager with experience across retirement and medical plan administration. She began her career in this field in 1982, focusing on medical billing, CPT and ICD9 coding, and claims processing. Her primary areas of experience include overseeing claims adjudication and supporting employee benefit plan clients.

Her expertise includes supervising claims adjudication for medical, health, and dental benefits, as well as providing FSA, HRA, and HSA consulting and benefit education for employee benefit plan clients. Judy is a Certified Section 125 Administrator and maintains active membership with the Employee Benefits Institute of America (EBIA), staying current with HIPAA compliance and industry best practices.

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