Companies with hundreds of employees have an annual healthcare spend in the millions. Whether the CEO knows it or not, their company is in the healthcare business. So it begs to question, who is managing their healthcare supply chain?
Supply chain management is a crucial element to the success of a business. CFO’s account for every paper clip, ream of paper and staple. Should a company’s CFO account for every expenditure in their healthcare plan? ERISA fiduciary rules state they should; they do it with their 401(k).
We do a lot research before contacting a perspective client. In today’s world of big data, it amazes me to see mid-size companies still fully insured. What is even more astonishing, those companies are paying more than twice the national average, according to Milliman Care Guidelines.
Why are these companies fully insured? Is their claims data not being mined to uncover gaps in care? What type of advice are they receiving? There are too many questions, with only one answer. The goals of the advisor is not in alignment with the client, their employees and their families.
Our biggest challenge is bucking the status quo and helping CEO’s see the millions of dollars that their companies should be retaining that is unaccounted for in their healthcare plan.
ERISA also states that you as your plans fiduciary is responsible for managing the assets of your plan in the best interest of the beneficiaries. Can you account for the assets that flow out of your plan? If not, you need a firm like Midwest Benefit Advisors to manage that supply chain and bring predictability to your spend.