Health Compass Consulting

Did you know U.S. businesses are estimated to waste over $300 billion annually on healthcare? This translates to about $4,000 per employee each year... And this waste often stems from misaligned incentives within the benefits brokerage industry and a lack of transparency. My forthcoming book "Unbiased Advice: How U.S. Businesses Can Save Over $300 Billion A Year On Healthcare," clarifies how these conflicts of interest came to be ---- And highlights how employers can regain control by bringing benefits expertise in-house or by partnering with fiduciary-based benefits firms. If you'd like an advance copy of my book, message me. #HealthcareCosts #EmployeeBenefits #UnbiasedAdvice

"Hospitals created health insurers for distribution. Health insurers created brokerage firms for distribution. This is why the financial incentives of the legacy system are often misaligned with the employer's best interests. When a broker's income is tied to selling specific products, their advice can be unintentionally biased. This can lead to employers overpaying for insurance, receiving inadequate coverage, or missing out on innovative solutions. It's crucial to differentiate between hardworking benefits professionals and the industry's incentive system. Many brokers strive to help employers, but the system often creates inherent conflicts. Understanding these conflicts is the first step toward navigating the world of employee benefits with clarity and integrity." ?This is an excerpt from my forthcoming book "Unbiased Advice: How U.S. Businesses Can Save Over $300 Billion A Year On Healthcare". If you'd like an advanced copy, message me. ??

"Can you imagine working with a law or accounting firm without a contract? Employers who don’t have a contract with their benefits broker often do not know who pays them, how much, or what their roles and responsibilities are. And this opens the door for waste --- and potentially abuse --- within a top three expense at your company: healthcare." This is an excerpt from my forthcoming book "Unbiased Advice: How U.S. Businesses Can Save Over $300 Billion A Year On Healthcare". If you'd like a complimentary advanced copy, dm me.

Willis Towers Watson, in their 2018 Earnings Report, explicitly states, 'Payments from carriers can incentivize intermediaries to put carriers’ or their own interests ahead of their clients.' This is a direct admission of the conflict of interest inherent in the traditional brokerage model. As an employer, moving benefits in-house, or using a fiduciary-based firm is your way around this mess.

Like most CEOs, Mark Cuban never dug in to see how his health plan worked... Once he did, he couldn't look away. That's because he uncovered massive waste resulting from misaligned incentives --- starting with his broker's revenue model --- and ending with the vendors they continuously recommended. He saw how this dynamic was undermining the financial and physical health of his companies and decided to flip the equation on its head. Many companies endure chronic pain in the area of benefits because they rely on legacy brokers --- whose financial incentives are diametrically opposed to theirs --- for advice on how to maximize the return on benefits investments. This often leads to employers overpaying by ~$2,000 per employee per year. Profit, wasted. If you can't find or afford to hire certified expertise in-house for your organization, you'll want to outsource it --- like a fractional CFO. Look for benefits professionals who are "Certified Health Value Professionals" (CHVP) and/or consulting firms who have earned the "Fiduciary Validation" from the Validation Institute.

Imagine if large benefits brokerage firms like AON, Gallagher, and Mercer were as transparent about their conflicts of interest as some players in the retirement industry are... Would employers transition to fiduciary-based benefits firms so that they could receive unbiased advice on how to maximize the return on their benefits investments? Would this lead to better purchasing decisions that measurably improve the financial and physical health of organizations and communities? Would this transition help employers avoid lawsuits resulting from fiduciary breaches on health & welfare plans? The answer is "yes". PS: Federal law requires this kind of transparency in the benefits space, but many legacy firms have failed to comply because they're embarrassed by their compensation practices.

There’s so much more money to be made on the supply-side of healthcare… I’m sure the cost-benefit analysis revealed that it made more sense for J.P. Morgan to keep healthcare companies as clients —rather than challenge them with better procurement methods for its own employees. Nothing like channel conflict amongst friends.

You wouldn't use a CPA who gets paid by the IRS --- for obvious reasons. However, many companies work with large brokerage firms that accept kickbacks from insurers and PBMs without their knowledge. Employers: it's not your fault. Insurers were created by hospitals for distribution. Brokers were created by insurers for distribution. That model no longer works... In fact...it's illegal. Under federal law, you can't use brokers who accept compensation from vendors for consulting or procurement services. That's because it influences the recommendations they make to you. And this undermines your ability to maximize the return on your benefits investments and fulfill your fiduciary responsibilities. Look for benefits professionals who are Certified Health Value Professionals (CHVP) and firms that are validated by the Validation Institute for adhering to fiduciary standards.

A CEO asked an HR Director a simple question... "Is our benefits program getting better or worse?" The HR Director struggled to find an answer... But it wasn't anyone's fault. The value equation of a benefits program is complex. After all, there are quite a few categories of value (strategic planning, cost control, employee satisfaction, compliance, technology, retention, etc). And no one had ever helped the HR Director quantify the value equation of their program so that they could answer this seemingly simple question. This conversation prompted us to develop our "Total Benefits Assessment" methodology. It's a framework for continuous improvement that helps organizations identify opportunities, set goals, develop roadmaps, and monitor progress. We've had over 100 employers take the assessment, and the results have been fascinating: Most employers are struggling in the areas of strategic planning, which results in overpaying for healthcare services and lower employee retention. If you'd like to see how your organization's benefits program is performing compared to your peers, send me a DM or visit my website to access the free assessment.

I have no idea what kind of health plan is right for you. That's because every organization values different things, and the marketplace of solutions is incredibly vast... (despite what you've been told) Doctors who prescribe medicine before diagnosing a problem commit malpractice. As a consultant, I, too, have an obligation to formally diagnose your problem. Until that happens, I have no idea if captives, self-funded, level-funded, or fully insured plans are right for you. Furthermore, there are millions of variations of each of these methods, and until I understand your organization at a deep level, I don't know which variation is best for you. Anyone who pitches you a product before conducting a formal diagnostic process is likely committing malpractice. As a fiduciary on your plan, you are required to work with benefits professionals who know what they're doing --- and are financially aligned with you to do it. If you're serious about improving the financial and physical health of your organization --- and complying with the law... Look for benefits professionals who are certified health value professionals (CHVPs) and have been validated for adhering to fiduciary standards by the Validation Institute.