We had a conversation with a broker recently who said they were able to save significant costs for a large group. Changes were implemented into the plan, but some employees had questions. Lots of questions. This noise gave the employer the impression that the plan is not working for their employees. 

The company decided to pay more for their insurance and return to the old model because that’s what employees were more familiar with.

In health insurance, everything has been built to maintain the status quo. Many employers are used to interacting with their brokers, or insurance carriers, in a transactional way. The insurance program is delivered year after year. Occasional improvements may be discussed, costs are likely negotiated, and the insurance program is set for another year.

Employers and employees may not fully understand aspects of their health care program. When employees do have questions, they can call a 1-800 number for customer service where they may be put on hold, sometimes transferred to another department. While this is tedious for employees, they become used to the process.

Brokers and carriers are content and employees know what to expect. 

Insurance carriers are happy with the current system. The Affordable Care Act is designed to provide affordable health insurance for Americans and protect people from being denied care. However, these regulations have created guaranteed profit for carriers with no incentive to reduce costs, because the more people pay for insurance, the more money carriers make.

This disincentives brokers to step away from the status quo because profit is difficult to deny. Also, generating ideas to improve a clients health insurance program can be harder. Some brokers don’t want to risk losing a client because the strategy failed to generate cost savings or employers are unhappy.

Now imagine you could reach someone directly. 

Advisors, like us, who are willing to break the status quo, can deliver successful strategies designed with your unique workforce in mind. We are continuously evolving, analyzing and improving how we work so we can bring our clients the best in health care insurance. What we do isn’t a quick fix. Processes are strategically implemented and, depending on the organization, can occur as incremental adjustments.

Any change can create some confusion and generate questions. Many employees have been using the same health care plan for years. When the process changes and employees gain access to someone who can give a more personalized experience, they may be more inclined to reach out.

Not because there are more problems, but because employees are being heard. 

The reality is, employees likely had problems with the previous plan. The difference– they knew what to expect. Time, education and attention, can allow employees to navigate new plan elements. A good advisor will take the time to listen and address the concerns of employees and employers.

This level of interaction means employees can receive a more personal experience. They can participate and ask questions about their health care insurance in a way they couldn’t before. This creates a lot of noise. But that noise can be productive.

New doesn’t have to be problematic. When your people have the right support, you may find they have a louder voice. We are always ready to listen. If you want to talk about your employee benefits, let’s chat!

Health care is costly and the industry is always changing. Consistent evaluation of your health care program is necessary because what may have worked for employees in the past, may not be what works best now. This can be especially important when providing plans with large out-of-pocket expenses. 

Employers need to be aware the moment employee’s begin to worry about affording health care. Whether one employee or the entire workforce share this concern, health care affordability is a challenge that needs to be addressed. 

To evaluate your plan effectively, employers need to have conversations with employees and conduct regular surveys to see how the plan is impacting them. This feedback, paired with plan data from advisors, can help you better understand the affordability of your plan. 

High-deductible plans are a popular choice among employers because they can offer employees an affordable premium. These plans also come with the added benefit, for employers, of meeting affordability requirements set by the ACA. Currently the affordability threshold is 9.6%, the maximum percentage an employee can contribute. If premiums are too high, employers may exceed the affordability requirement, which means the employer needs to contribute more to monthly premiums payments for their employees. Some businesses can struggle with this extra cost.

The beginning of an unfortunate spiral.

Employees may also struggle. Low premium, high-deductible plans have deductibles that can reach a staggering $5000-$6000 and while employees don’t have high monthly payments to make, high deductibles can keep them from getting appropriate care. According to a recent KFF (Kaiser Family Foundation) report, 44% of insured adults worry about how they will pay their medical bills in the event of an accident or illness.

This means almost half of insured adults have concerns about seeking medical care. In these cases, health insurance is not doing its intended job. Although health insurance is available to employees on paper, the threat of medical debt, or worse, bankruptcy, can prevent members from using that insurance and getting health care. These employees can be considered functionally uninsured.

The spiral continues.

About 40% of adults have postponed or skipped medical care as a result of high costs. While dental care is the leading service to be declined, some may avoid care for ongoing treatment or decline medically advised procedures such as X-rays and MRI scans. Prescription costs are also being avoided by employees, who may cut medication in half to extend usage. Some may skip medication entirely. 

This can be catastrophic for an employee. When skipping medication or declining treatment may not have immediate repercussions, chronic conditions, such as diabetes, can worsen over time. 

Unfortunately, group members who do not seek treatment for health conditions, or those not taking required medication will inevitably drive the cost of the health insurance plan up. When costs increase in this way, more employees can begin to feel the effect of high costs, and they too may begin to avoid treatment. Creating a spiraling cycle. 

Stop the spiral before it impacts your employees.

If your organization offers a low premium, high-deductible health plan, options are available. Work with an advisor, like us, to help discuss strategies that can address your plans affordability for your people. Options such as health savings accounts and flexible spending accounts for employees can be implemented. 

Don’t let your employees worry about medical debt and care affordability alone. Reach out to them regularly with one-on-one conversations about their health plan concerns and analyze important data from your plan throughout the year with your advisor.

If you have concerns about your employees and plan affordability, let’s chat.

We have a client who wants to review their plan data more often. Their current vendor wasn’t willing to make the shift from quarterly to monthly so we reached out to another who was happy to make the change. This adjustment was important to our client and data is important to us. We were more than happy to help.

Like many businesses, we do what we can for our clients because they are important to our success. We listen to their concerns and make every effort to provide them with the best solutions available. Our client wanted to improve their ability to make decisions for their business. We saw the value in this request because we believe in the power of data and the ease it brought for our client.

We need to apply the same attention and care to our employees because our employees are an integral part of the business. As employers, we know how costly it is to lose good clients. But we also have to be aware just how costly it can be to lose good employees. We need to listen to their needs just as much as our clients.

We need to listen more.

To help facilitate open communication we have meetings regularly with our employees to give them the opportunity to discuss their concerns openly. During a recent meeting our employees requested to receive a notification when payroll went through. If we can make phone calls to address our clients’ concerns about increasing the frequency they get their data, we can definitely make a phone call to set up an automatic notification to employees when payroll has been delivered.

Although the request seems like an extra step in the process to some, the notifications were important to this group of employees and because we made the notifications a reality, our employees felt heard. When we focus all of our energy into the needs of our clients, we can easily miss these opportunities to help and take care of our own people.

Knowing what makes your people comfortable, happy, and motivated is a beneficial tool. Employees could have concerns about anything from minor nuisances to difficulties with new software or navigating their benefit options. If they are left feeling unhappy or frustrated with those concerns, they may not have a reason to stay, and without them, we have no business.

When you listen to your people and give them the best experience possible, everyone can win. If we take care of our employees, they will help us take care of our clients.

Implement change based on employee’s concerns. 

If gathering employee feedback is not a part of your process, you should begin today. Work with your advisor to incorporate that feedback into your culture with your benefits program, and not just once a year. Several times a year. 

More often than not there is something your employees want to learn or change about their benefits. Whether they’re concerned about paid time off, their 401K, or they need more information regarding deductibles or copays for an upcoming health appointment.

Talking with your employees and managers on a one on one basis regularly is a great way to encourage your employees to share their concerns and suggestions. You don’t have to agree with every request, but you want to hear what they have to say. Really hear them. This leadership style also encourages your managers to do the same thing with their employees. 

People leave businesses because of people. We need to be aware of that. Listening to your employees’ concerns and addressing them in a timely manner can make a difference in the lives of your employees, both inside and outside of the office.

Businesses in all industries are facing yet another hurdle caused by the pandemic, attracting talent. From salespeople, machine operators, cashiers, to more isolated professions including engineers and doctors, finding top talent is a struggle. A clear trade has not been targeted, name the position and the job is open.

Total compensation has always been a consideration to potential hires. People want to know what will be offered to them in exchange for the effort they put in as an employee of the business. And with so many opportunities available to choose from, employees are in a position to be selective. 

Many are questioning how much they will be paid, but also what their benefits will cost, how much deductibles are, and what the 401K match will be. Some employees have expressed an interest in benefits outside traditional offers, such as: student loan repayments, financial planning courses, and flexible spending accounts. There is a need for family support in benefits, from childcare options to paid family leave. We have also seen an interest in employees requesting paid time off or flexible and remote work options. 

There are many modern options available that can be built around total compensation.

Recently, with the current struggle to hire, employers have to consider that there is more to encouraging new employees and supporting a current workforce than offering a large paycheque. Building a solid foundation for your people starts with great leadership, followed by a competitive total compensation package.

As employers we need to be more introspective about what our organization is about. We are all facing the challenges of hiring new employees and feeling disappointment when a great talent moves on. These situations can be out of our control, but sometimes our culture, pay and benefits, even a combination of all three, are responsible.

Employers have a lot to consider.

From the great resignation to the great re-hire, businesses are having to dig deep to find out what motivates their employees. To take a step back and ask themselves if they are leading their employees in a way that resonates with them. Generationally, this concept matters as we currently have both millennials and baby boomers in today’s workplace.

We have employees who are audio learners, others who prefer hands-on learning. Geography is becoming less of an issue for employees with many enjoying the opportunity of a work from home lifestyle. Employers are learning to lead their remote employees successfully from behind the screen.

There is a need to naturally attract great talent.

Everyone requires a different style of leadership. The current challenge of attracting and retaining employees suggests adaptation is key. Employers need to be open to change and take on a more holistic approach to becoming a great leader. As an employer, challenge yourself. Are you leading your people the way they need to be led? 

There is a demand to give our people the tools both inside and outside of the office to succeed and live a fulfilling life. 

Many small businesses continue to struggle with hiring new employees despite a sudden recovery from the pandemic. Others, who are able to attract and hire talent, are working hard to retain them. 

Company culture, leadership style, and adaptability all play an important role in employee recruitment and retention. Once established, these important elements can be reflected in your total compensation package. We can help.

We are part of a collaborative group of people that continue to learn and innovate in our industry. We connect with creative, like minded businesses and people to see what opportunities we can bring back to our clients. The goal is to lower costs and increase quality in benefits programs for employees and their families.

Your broker should be able to recommend the right benefits for your unique workforce. They need to be doing this kind of scouting, staying up to date with rules and regulations and becoming industry leaders by finding innovative ways to better your benefits program. 

If not, you could be missing opportunities to offer your employees the most comprehensive plan, while staying on budget.

Some broker’s aren’t investing the time.

A lot of people get into this business because they can set the hard part on autopilot. For these brokers, the work comes at the end of year, during renewal season. Often speaking to clients months, or weeks, before they need a signature, leaving plenty of time to catch up on another game of golf.

People often ask if I golf. I don’t. But if you ask other brokers, I bet eight out of ten are really good golfers. I spend my free time with my family and growing my business to become better at what I do. I’m willing to spend days away, to learn about things that can make a difference in my clients lives and their families lives. 

A good year of golf for me is never golfing.

Employers need to know their brokers are putting in the effort. If you’re questioning whether your broker is focused on making sure your benefits plan is the best fit for your business, consider these questions:

• How often is your broker bringing new ideas to you that genuinely help your business?
• Is your broker open to change?
• Does your broker understand your company culture?
• Is your broker pursuing innovation?

During the day to day, it may not be obvious that your broker is not actively improving your benefits program. But ask yourself when the last time you had a conversation with your broker about something new they’ve learnt or when they last offered you a strategy that could reduce costs. Or are they asking you to play golf and have lunch?

You need to know where to look.

Of course, there are a lot of ideas out there and you can chase a lot of shiny objects. But at the same time you need to be open to looking at some of those shiny objects, to really evaluate if they are valid, innovative ideas, or just more tinsel on the tree. This is the hard part about searching for innovation and unfortunately, there are a lot of brokers who won’t put in the effort.

If your broker does find a new idea for your business, be sure the suggestion is driven by the needs of your people, your broker should understand your business. That filter is critical. New ideas don’t have to be a product, but it should be a solution. In our previous article, lack of data was the problem.

Your broker should be putting in this kind of effort and if they aren’t, you should find out why. Ask more questions and get your answers. Your broker should be willing to invest the time in you, your business and your people.

We are always looking for new and innovative strategies and technology to help you build your benefits. We don’t need to play golf, we need to bring our clients the best possible solutions for their company.

You need data to help make strategic decisions about all aspects of business, especially when those decisions impact your entire organization. Here’s the power of it as data use evolves:

During a four day conference I met with an MD doctor who is also a founder of an innovative company. The company started with a college statistics course. One of his group assignments determined that they could arbitrage sports betting. This opened doors to the development of a strategy software, using the statistics behind sports betting to determine where opportunities were.

From there, he formed a company that does medical underwriting based on social and public data. Medical, social and economical data that is circulating the internet, sometimes without our knowledge. This data is then used for determining medical risk. 

He was able to determine if people were compliant with their medical care. By cross referencing their social media. For example, data can be gathered about gym memberships with specific classes someone has enrolled in, that they drink twice a week, where they shop, and where they dine out. 

Someone’s lifestyle can be used to associate health risk.

He built a company around that, and sold it. Unfortunately, some insurance companies using his software to determine risk were not using it properly. They were using the software to simply deny or approve an individual, rather than pricing their risk based on the information received. 

For this reason, he is at the head of the new company and now helps insurance companies use the software as intended, to underwrite risk based on data. 

What does this mean for you, your business and your people? 

1. Big brother knows a lot about us. We aren’t taking advantage of that in our benefits plan. For example, we could change our underwriting process. All of the big tech companies like Facebook and Google are basically data acquisition tools to be resold. This is a sensitive area, but the data is already out there and in this instance, that data can be used for good.
2. We can reduce risk for the benefit plans we build because we can clearly identify where risks may be. We can then underwrite benefit plans more accurately. Sometimes we need data that is not accessible, this software can be used to create better insight.

We have a lot of data analysis in our process already. This additional data on employees can better manage risk for a self-funded plan, and could potentially become a way to get a better understanding into employee behavior, allowing employers to choose better programs, designed with what the workforce actually needs.

Benefits designed for your people.

Being able to determine risk based non-medical factors can be an advantage for employers, and more importantly their people. Understanding what is important to your people by learning lifestyle-focused data can allow employers to create benefit plans based on their population, reducing costs and increasing employee retention.

Revenue that is generated from proper risk assessment can be used to give back to employees. This type of technology is not a product, this technology is a solution.

Data is the key to new developments, successful outcomes and a better understanding of business operations. By using data as a strategic asset, you can gain valuable knowledge unique to your business, helping create an effective, more efficient benefits program.

Yet, some employers don’t have additional data to make informative decisions about their benefits program. That data is either inaccessible or difficult to access. This leaves many employers struggling to find answers last minute or holding onto hope the choices they make are successful. 

We need to take guessing out of the equation for these employers. We need to deliver more information. 

Data is powerful. And the heart of what we do.

“Why have I never heard this before?” Is something I hear a surprising amount when I talk to prospective clients about their benefits. And what they mean is, why don’t they know they can get quantifiable information on quality, or that healthcare can truly be a controllable cost.

Brokers have an immense effect on not only your company’s finances, but also a profound impact on the health and wellbeing of your employees and their families. Which is why you need your broker to offer more than what they’re familiar with, so you can achieve a cost-saving, competitive healthcare plan. 

There are likely two answers to why you didn’t know about cost-saving options, strategies to manage your costs, and obtainable data to help make tough decisions easier. Those answers are: 

1: Your broker doesn’t know it.

2: Your broker does know it and doesn’t want to tell you.

Obviously, one of these answers is more acceptable than the other. You can work with a broker who is willing to learn, but the second answer is unconscionable. 

As an employer, you need more information at your fingertips than what the traditional broker can bring. If you are a large employer, you may be using a one size fits all plan offered from one of the larger carriers. If this is the case, and chances are good, you could be missing significant opportunities to take control of your healthcare costs.

The thing is, some “brokers” haven’t been looking for better solutions or been receptive to change. Skills and capabilities that are expected of brokers are constantly advancing and improving. Some brokers haven’t put the time or energy in to develop these skills. They haven’t invested their own time or money into finding better ways to provide healthcare to their clients.

For these brokers, the job is relatively easy. They pick the package, hit send, and the plan renews every year until clients become frustrated with increasing costs and little savings. I know this because I was that guy. Then I saw there was a better way. I changed my entire business because I wanted to give the best to my clients and their employees. I didn’t want to sit back and do what was best for only my revenue.

In all other professions — medicine, technology, law, etc — experts are expected to learn new material, gain new knowledge and stay informed of the latest developments in their space. We rely on them to use the best solution available and the only way for them to accomplish that is to stay on top of what is changing and what has already changed.

Traditional broker education doesn’t have these standards. Which means your broker might not be up to date with the technological innovations and education that allows brokers to stay active and sharp in their field. Their job is to make sure you receive the most value for your investment and achieve benefits your business can be proud of.

Many employers have had the same broker for years, without giving thought to whether a change is warranted. Don’t be afraid to ask your broker questions and be wary if you aren’t given answers. Your business is constantly evolving, so should your benefits plan.

Gain control of your healthcare plan, give your employees and their families what they deserve and stop being left in the dark. Find a broker that can help you make valuable decisions about your healthcare plan.

Dynamic and innovative people in benefits stay active and are working with you year-round to make sure your strategy is on target with your goals. They don’t reach out once a year near renewal time with nothing to offer but a contract.

Never be afraid to help someone out, even a total stranger. Not only can you boost your happiness and wellbeing, you can gain unexpected rewards in return. 

I was flying from Sarasota to Boston for an advisor conference and was happily bumped to first class (because of my status with American Airlines). When I found my seat, I noticed the person next to me talking on the phone. He was casually dressed, like something you’d wear on a Zoom call during Covid. As I sat down, I heard him talking about flying back home for a surgery. 

After his call, we got to talking.

He asked me what I do, and I shared with him our mission — increasing access to healthcare and higher quality healthcare. We continued to chat about the importance of transparency and sustainability in healthcare. I didn’t know very much about him at that point, except that he had a surgery coming up and he was working out the logistics.

About 10 minutes before we were expected to land, he asked if I could look into his doctor’s quality scores. Definitely. I fired off a quick email to our service department and got a quick response. 

By the time we landed, I had the information he needed.

We found that one of his physicians was relatively low quality and he wanted to know what he could do to change that. I connected him to a nurse advisor, allowing his private information to stay that way, and he spoke directly to her.

As we parted ways, I sent him the quality scores to review. He was surprised how fast everything came together and was appreciative of all the help. I could only answer happily, “that’s what we do!” Then, he asked if I would connect with his team. 

Turns out, he is the CEO of a large company. 

He didn’t have clear insight into his healthcare data or the quality of his care. This is something we come across often in benefits, both employers and employees can struggle to navigate their healthcare options. Your people need to be able to ask questions, and know where to find answers. 

This CEO was willing to learn and I was willing to have a genuine connection with him. I have since shared his story with his team.

Healthcare is a universal need. If the CEO of a successful company doesn’t have the information to make the right choice about their healthcare, how does an employee feel? Situations like this affect everyone, from employees to c-suite leaders. 

A comprehensive healthcare plan is only beneficial if everyone knows how to use it. You can make a big difference in helping your people become knowledgeable about their benefits by:

• Making benefit communications engaging, positive and interactive.
• Making benefit marketing a year-round effort.
• Conducting personal interviews and using questionnaires to find out what your employees need and what they don’t understand in regards to their healthcare plan.
• Making access to information easy, consider initiating a benefits team among your employees.
• Holding meetings or annual health and wellness fairs to encourage employees and their families to come out, ask questions and learn more.

If you lead by example you can increase trust within your team and create an open environment where employees feel comfortable asking for help. This can open doors to a more transparent, sustainable healthcare plan because the better your people can navigate their benefits, the better their health and wellness will be.

In one flight, we made a connection, one that made a big difference, to a lot of people.

Make it your mission to make meaningful connections with others, because when you do you can create a phenomenal network of people, and that alone can create opportunities that wouldn’t otherwise exist.

Throughout my years as a benefits advisor I have come to learn that taking time to read the fine print is crucial to success. Our clients depend on our expertise to deliver the most cost effective plan for their unique business and workforce.

To do this we need to align the right partner or partners with the right client. When this connection is made, everyone across the board can be set for success. 

However, you need to know your solutions providers, understand their business models and be aware of the fine print first. Here are four important points every broker should consider when delivering health insurance recommendations:

1. Read and understand the contracts.

Question if a solutions partner doesn’t want to let you review the contract for the client beforehand. Some solutions partners have tight multi-year contracts and you, as a broker, need to know that going in. If not and that solution provider doesn’t end up being a good fit or the plan doesn’t match the company, your client could be locked in and getting out can get very expensive. Should this happen, you can begin negotiations on behalf of your clients, making sure they know this may not be easy to accomplish.

Hidden fees and clauses like this can harm the potential impact of your plan and can negatively affect your client’s confidence. They trust you to guide them through these issues and may even place blame or hold you responsible for missing these details, even if a partner drove the problem.

2. Understand your partner’s goals.

Knowing how your partners usually operate and how they deviate will give you the ability to look for variations in their process. For example, if your partner usually offers three year contracts, but has agreed to one year, the agreement sent across could accidentally include a three year. This mistake is not always intentional, but it happens. 

Many solutions providers prefer multi-year contracts for obvious reasons, but as a broker, you should know up front what terms would be best for your client. We have a partner who prefers three year agreements, but is willing to do a one year agreement with the right discussions. Having conversations like this and knowing what your partner is willing to do will help streamline what you offer to your clients jointly.

You need to be diligent with fine print to ensure the correct agreements, with the correct timelines are being signed.

3. What we do is not easy.

Implementation is not easy. Unraveling a self-funded program when one of the solutions or partners is the wrong fit can be a challenging endeavor, especially if one of the solutions or partners is the wrong fit. You might have six or seven partners to bring any one program to life and often, we have specific milestones to reach in order to reach stop-loss to unlock reimbursements, so if you have to pull a partner part of the way through, it creates a lot of conflict. 

Being meticulous with agreements up front can save you and your client a great deal of heartache and problems.

4. Stay up to date on solution providers.

You need to be aware of how partners are evolving as well as your clients because the right partner three years ago might not be the right partner today. Companies get bought and employees change roles. Not all changes occur internally either, your clients program can be influenced from the demand of the current workforce.

The solutions that are good today may not be the best solutions tomorrow, so you have to stay aware and adapt to bring the best solutions to your clients.

Help guide your clients.

All clients are looking for the same thing — the best coverage at the most affordable cost. Yet the healthcare industry is complex and clients often find it overwhelming or difficult to understand. So they turn to us, to determine which partners and which plans best align with their needs. 

To do this successfully, we must know what to expect from our solutions providers and the agreements they offer. Right down to the fine print.