cost control

If benefit advisers seek to help employers control their health insurance premiums, why aren’t firms lined up to show you their results?

Think about it. Years ago, the Security Exchange Commission (SEC) finalized a rule requiring mutual funds to provide investors with a prospectus that includes key investment information. The prospectus outlines the fund’s objectives, goals, strategies, investing risks, fees and past performance.

I hope this is an “Ah-Hah” moment in which you ask yourself, “What would our benefits advisers include in their prospectus?”

We challenge employers to focus on results—just like the prospectus teaches us.  Ask your benefit advisers some of the following questions:

  1. What are some objectives or goals your organization has to help us control our benefit expenses?
  2. What are your strategies for achieving those goals?
  3. What are key services, initiatives and tools you provide?
  4. In your opinion, what are the actuarial components that make up our price for health insurance?  How does your firm impact those in a positive way?
  5. What are your service fees?  How are they paid?  What kind of financial incentives do you provide to keep my benefit expenses stabilized?
  6. How do you evaluate your past performance, when controlling cost for your clients?

Brinson Benefits