Braden Benefit Strategies, Inc. (BBSI)
Experts providing employee benefit solutions
770-447-9843 or 800-353-0292
Thoughts on controlling the cost of health insurance:
1. Consumer/employee is out of touch with the cost of healthcare. Several methods are available to help individuals/employees come more in touch with their healthcare costs.
BBSI maintains that companies not taking a pro-active approach to their rising health insurance premiums will – at some point in the future – have an expense crisis requiring huge negative changes for employees, be it from large premium increases, reduction in benefits, or both.
Long-term strategic plans can help companies’ control one of their largest line item expenses.
2. Insureds are not taking care of their health, rather solving medical issues with prolonged prescriptions and/or therapy costs. This is reinforced by the rising rate of obese and morbidly obese individuals. Point in fact, USA Today reports that morbidly obese people in the U.S., those 80 pounds or more overweight, are being treated for 6 or more weight-related conditions.
3. Physicians – medical schools are graduating the same number of doctors that they were 20 years ago. So while the population has grown by 20% , our physician population has not increased.
4. Insurance agents are not held accountable for negotiating the very best renewal prices for their client.
Insurance rates, self-funded, partially self-funded or fully funded policies are determined by the demographics and medical conditions of a group. While agents may claim they receive better rates than other agents in a particular market – this is untrue. An agent or an agent’s relationship does not determine rates with a particular carrier. Rather, your rates are a mathematical calculation of the group’s age and sex as well as past and present medical conditions.
Agents need to make a transition. Agents need to redirect some of their revenues in order to deliver more than just reactive customer service to clients. Ask your agent for a breakdown of the commission they earn on your company. Find out what your agent is paid annually from each of the insurance companies. Is your organization receiving the value of your investment?
Also, ask your agent for the agency’s income breakdown by insurance carrier. Ask what bonuses were paid to the agency in the last two years, again broken out by insurance company. Compare the agency’s business breakdown with the states break out (States will offer the amount of business by each carrier annually.) If there is a lopsided income distribution, ask yourself, is the agent being objective in where they are placing our business? Is the insurance that your company provides the right insurance coverage for your company? Agents need to transition and become consultants – trusted advisors for their client companies.
Services offered by agencies should not only include resolving employee claim problems and company billing errors but
· Strategic long-range planning,
· Annual legal notices related to the company’s health insurance benefit package (HIPAA, COBRA, Cafeteria plan, Medicare, etc.)
· Analysis of the company’s claims and suggestions and programs to help hold claims in check.
· Electronic capabilities that save the company time while assuring the confidence of your employees. Can employees enroll in their benefits electronically, see their benefits online 24/7, determine the cost of their individual benefits online, make changes such as address, cell phone, beneficiary and have this information sent to all relative carriers electronically?
Agents are offering great re-active customer service. What if your agent offered great pro-active customer service? Your employees would be in your office less, on the phone less time trying to resolve claims and much more satisfied with the benefits your firm is providing.
Isn’t it time you ask your agent to earn their commission or find an agent who will?
Braden Benefit Strategies, Inc.
www.bradenbenefits.com
expert@bradenbenefits.com
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