“Insanity is doing the same thing over and over again and expecting different results”. -Albert Einstein
Why begin with a quote like this, you may wonder? Because the unfortunate reality for so many employers has been to repeat the same process every year or so and expect different results (long-term savings). Of course, there used to be a limited set of options for small and mid-sized employers when it comes to group medical benefits, but today, there are hundreds of smaller health plans that still rate companies based on health status. The reason this is important is because ultimately, the only way to reduce costs long-term is by having low claims. Of course, there is general trend in the market that employers of all sized have to content with, but when we see the initiatives of jumbo employers being aimed at reducing claims, we know there must be something to it. Employers proactively spend money on programs in an effort to reduce current and future claims, which of course, is a good thing. Smaller organizations can, and should, do the exact same thing by working with brokers that have the ability and wherewithal to apply these principals to their group of clientele. All of this makes perfect sense, but the reason so many groups may still be quoting and praying for lower rates each year is due to how the brokers they work with operate.
It is, of course, the easiest thing in the world to just do what is working and not make changes. You may agree that truly innovating takes a tremendous amount of thought, planning, and execution, so a limited set of brokers are used to doing this on a regular basis. The old brokerage model of quoting the same set of carriers each year and providing adequate service is simply not enough any more. The conversation must be dramatically different, and while change can be perceived as difficult, it is necessary to combat the ever-escalating premiums that many are facing each renewal. Is your current broker innovating for you?
Another reason why many employers are still stuck in a cycle that doesn't work is because the largest, most sophisticated brokerages simply do not work with this set of employers. If an employer demands on-site guidance, a meticulously planned renewal season, expansive marketing, brilliant employee communication materials, actuarial and legal support (as needed of course), and intense rate negotiation, their best option is to work with a boutique or regional brokerage that can deliver this hands-on approach. Smaller brokerages have to work efficiently, and that means leveraging external resources to the benefit of their client. For example, by working with General Agencies that are paid directly by their carriers, a boutique brokerage can feature legal, actuarial, human resource, technology, and other resources without additional cost. A trickle down effect is that a boutique brokerage may charge less in commissions to account for this reduced overhead, which means a direct savings for the client.
Good is the enemy of great, which is why there are so many 'good' brokers out there and a very limited subset of 'great' ones. Prosperity Benefits is committed to exceeding expectations and providing clients with excellence, which we hope you agree is a standard that you can enjoy getting used to. A byproduct of this disposition for clients are the most cost-effective, well-communicated, compliant benefits plans that are designed future success in mind.