Employers routinely shop the market for new group health insurance options. Quotes however are non‐binding until the group submits a formal application, which usually includes employee health statements.
Underwriters want those health statements to be current, thus ‘The 60 Day Rule’; i.e., applications cannot be dated any earlier than 60 days before the proposed effective date.
So let’s say you consider switching insurers July 1st. The applications can’t be dated before May 1st. Underwriting and a final offer may not be completed until June 1.
That doesn’t leave a lot of time to communicate changes to employees.
Timing is everything.