Several things are true about underwriting:
1. Typically, it is the best way to achieve the most advantageous rates in the market for small and mid-sized groups.
2. It allows access to data, which is important in identifying where the risk lies in your group and what strategies can be used to help mitigate those potentially catastrophic future claims.
3. It can be like herding cats to have staff fill out applications...!
While Prosperity Benefits uses FormFire in an attempt to streamline the underwriting process for employers, there is an even easier way for groups that have more than 20 enrolled lives on their health plan and it is RX Underwriting.
This concept is not brand new, but several carriers have now adopted the approach of offering FIRM rates to groups that are able to supply names, dates of birth, genders, and zip codes for all those employees and dependents that are covered on a health plan. Using this method, the employees are removed from the underwriting process entirely and may simply then make their elections based on the firm rate offer.
RX Underwriting is not without inherent flaws, but with several of the most competitive carriers in the small and mid-sized group markets using this approach, it is wise to follow the trend as long as it is possible.