Key CEO Question: Is Your Benefits Consultant a Dodo Bird or Eagle?

The tyranny of low expectations signals if you're with a dodo

At least once a week, I hear another story of a CEO finally getting engaged on health benefits as out-of-control health costs have created an existential threat to their organization. The recurring theme has been they've gotten the latest premium increase or cost projection for healthcare and realized they either fix healthcare or they will go from being a profitable business to a money-losing business. They realize they can't cost-shift (to employees) their way out of this problem -- that sort of worked for awhile but has run its course. These CEOs swore off accepting the tyranny of low expectations that the best they could hope for is a less bad increase (the smart ones realize a 10-20% decrease is a layup if they work with a well-tooled professional).

These CEOs are joining the legion of forward-looking employers I highlighted in my TEDx talk embedded below that are taking back the American Dream - Healthcare Stole the American Dream - Here’s How We Take it Back.

Previously, I wrote about how benefits brokers are going the way of the dodo bird. I outlined how just as stock brokers went the way of the dodo bird, old-line benefits brokers are giving way to benefits consultants/advisors who are the equivalent of eagles. As this article on eagles outlines, eagles have vision, are fearless, tenacious and never eat dead meat which is a good description of forward-looking benefits consultants. I was going to leave out that last one until I realized that too many health benefit elements aren't much better for employees than dead meat yet old-line benefits brokers feast on these programs.

When I'm asked by CEOs and CFOs what they should do to right the wrongs in their health benefits, I tell them if they only do one thing it would be to review whether their benefits consultant operates more like a dodo bird or eagle. If they are like the extinct dodo birds, it's time for an eagle. The longer version of my answer is captured in my book I'm working on (click below).

For that reason, it's no coincidence that the first certification the Health Rosetta Institute is coming out with is for benefits consultants. It's being designed by and for world class benefits consultants. Even though we quietly updated the Health Rosetta website, it's been gratifying how many forward-looking benefits consultants are eager to get the benefits consultant certification and have put themselves on the waiting list. In less than two months, we had more demand than we expected in two years. We're gating accepting in new advisors to ensure we can support those who have already been on-boarded. In the meantime, we make as much possible via www.healthrosetta.org so there aren't obstacles to doing the right thing for clients.

If you are an employer, I'd urge your benefits consultant to get this certification. If you are a benefits consultant yourself, we invite you to go to the page where we compare status quo brokers to forward-looking consultants. You can add your name to the waiting list by clicking on the action buttons (e.g., "learn more"). I've appended the comparison between the old-line status quo versus forward-looking consultants. It's time that great benefits consultants get the recognition they deserve and their book of business rapidly grows as a result.

Status quo benefits brokers

• “Shops” the insurance every year - shops is in quotes as broker compensation programs designed to retain clients with a carrier regardless of value influences many to make the incumbent look best
• Facilitates insurance one year at a time
• Believes costs are dependent on the best offer of the carrier/TPA
• Gives limited data on where your money is going
• Provides limited ways to control underlying costs
• Doesn't talk about their compensation or worse, is solely paid on commission, meaning more income the more rates go up
• Advocates cost shifting in the form of increased deductibles and copays to lower the employer impact of premium increases
• Blames costs exclusively on employee behavior and poor health

Forward-looking benefits consultants/advisors

• Creates a 3-5 year plan
• Brings transparency to where the money is going
• Talks about their compensation and is willing to tie compensation to performance
• Provides risk management to suit the needs of the business owner(s)
• NEVER surprises with a “shock” renewal rate
• Returns control over your costs to you
• Bring the “benefit” of Benefits back to your business
• Makes this a real attraction and retention tool
• Understands improving benefits is the only way to lower costs
• Provides detailed data driven analysis and actionable insight

This comparison makes it very easy for CEOs to distinguish whether their benefits consultant is delivering them a competitive advantage or is putting their company in legal jeopardy by failing in their ERISA fiduciary duty. This brewing legal maelstrom is just beginning to hit. It will turn the health benefits industry inside out creating huge opportunities for those leaning into the future versus those clinging to the past.

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Dave Chase is the co-founder of the Health Rosetta (a LEED-like organization for healthcare), and author of the book, “The Opioid Crisis Wake-up Call: Health Care is Stealing the American Dream. Here's How We Take it Back.” Follow the link to the book for a free download of the book. Chase's TEDx talk was entitled "Healthcare stole the American Dream -- here's how we take it back." See the Health Rosetta website for how to get involved, resources and how to join others to support its mission.

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