Suppliers: The Backbone of Your Business and Health Plan

When you think about the suppliers for your health plan, who are the top three that come to mind? Now, let’s consider the same question from a different angle: who are the top three suppliers in your business operations?

Which question was easier to answer and why was it the second one? The suppliers for your business are more visible and tangible in your day-to-day operations. You know their names, understand the crucial role they play in your success, and you’re very aware of how much you’re paying them. Their value is visible, measurable, and directly tied to your bottom line.

In contrast, when it comes to your health plan, the ‘suppliers’ often remain hidden in the background. You might not immediately think of them as suppliers, yet their influence is significant. These key players—hospital care, physician/clinical services, and prescription drugs—are at the core of your health plan's costs and directly impact the well-being and productivity of your workforce.

Let’s imagine that your top business supplier handed you a 10% increase in 2025. How would you react? You might negotiate prices, review contract terms, assess usage, explore alternative suppliers, or even ask for early payment discounts to reduce the impact. But how do you respond when faced with a 10% renewal increase from your health insurance carrier?

Who handles the contracts with your top business suppliers? Is it the same person who manages your health insurance contracts?

While their presence may not be as obvious, the impact of these health plan suppliers is just as crucial, if not more, to both your employees' well-being and your company's financial health. Are you paying as much attention to your health plan suppliers as you do to those in your business operations?