AMPLIFY Your Benefits Program

Employers are being pressured to find innovative ways to combat the rising costs of employee health and benefits programs without compromising the quality of their plans. “Businesses encounter numerous pain points when it comes to healthcare benefits plans, says Geoff Christian, MBA, CWCC, EVP and Employee Benefits Captive Leader, AssuredPartners, “If these challenges are not properly addressed, they can lead to employee dissatisfaction and potentially result in the loss of valuable talent. While this scenario may sound dire, it is not insurmountable.”

The Employee Benefits Captives Team at AssuredPartners, led by Christian, understands the hurdles that business leaders face but also has effective strategies to help overcome these obstacles. Let's dive into the common struggles associated with providing a benefits plan and, more importantly, explore ways to address them. By tackling these challenges with the right strategies, businesses not only mitigate potential issues but can also AMPLIFY their benefits program, leading to increased employee satisfaction and retention.

Key Challenges

• Rising Costs / Lower Value: Employers are grappling with the increasing costs of healthcare benefits. These increases are a significant burden, especially for smaller companies that may struggle to absorb them. If the costs are passed on to employees, it can lead to discontent and turnover.
• Lack of Control and Transparency: Fully insured plans often lack the flexibility and transparency that employers need. They find it frustrating when implementing wellness programs and other cost-saving measures but do not see a return on investment due to the rigid structure of fully insured plans.
• Provider Network Changes: Changes in provider networks can create difficulties for employees who may lose access to their preferred healthcare providers. This can lead to dissatisfaction and disruption for employees, which in turn can negatively affect productivity and retention.
• Complexity and Navigation: Employers need tools to help employees navigate the complex healthcare system. The lack of such tools can lead to confusion and inefficiencies, making it more difficult for employees to utilize their plan effectively.
• High-Cost Pharmacy and Medical Inflation: Employers are also concerned about the rising costs of prescription drugs and medical inflation. These factors contribute to the overall increase in healthcare expenses, making it challenging to manage budgets.

These pain points highlight the need for more flexible, transparent, and cost-effective healthcare benefits solutions that can better meet the needs of both employers and employees.

Strategies to Address Key Challenges

To address the pain points employers face regarding healthcare benefits plans, specifically the rising costs, several strategies can be implemented. Here are some insights:

• Captive Insurance Solutions: One effective approach is the use of captive insurance models, such as the Amplify captive launched by AssuredPartners. Captives offer employers greater control over their healthcare plans, enabling better cost management and transparency. By pooling resources with other employers, companies can negotiate more favorable terms with stop-loss carriers and achieve substantial savings. For example, a client saved $1.7 million since 2017 by joining a captive.
• Multi-Year Strategy: Implementing a multi-year strategy, rather than making single-year, reactionary decisions, can help manage costs more effectively. This approach allows employers to plan for long-term financial stability and better manage high-cost claims.
• Enhanced Transparency and Control: Captive models offer greater transparency into claims data to better understand and manage costs. Employers can tailor their plans to meet the unique needs of their employees, while access to claims information helps in making informed decisions.
• Provider Network Selection: Being strategic about using providers with a track record of good outcomes not only saves in the long term but also promotes employee satisfaction with their medical plan.
• Employee Tools and Resources: Providing employees with tools to navigate the complexities of the healthcare system can reduce confusion and frustration while improving the ease of using benefits.
• Efficiency With Technology: Administration and communication can be streamlined by using data analytics and benchmarking programs. These programs can identify ways to save costs and enhance the benefits program experience for both employees and employers.
• Focus on Wellness Programs: Investing in wellness programs and preventive care can help reduce overall healthcare costs. Employers can implement programs that encourage healthy behaviors and provide resources for managing chronic conditions.

AMPLIFY Your Benefits Plan

The Employee Benefits Captive Team at AssuredPartners listened to business leaders as they shared the pain points of providing their workforce with a benefits program. By listening, the team gained knowledge and then applied it to build a program that addresses the concerns. AMPLIFY, an exclusive employee benefits captive designed for businesses with 50+ enrolled employees, offers tailored risk management, stop-loss protection, and other exclusive member benefits – all while joining a network of like-minded organizations committed to better outcomes.

“Captive membership brings accountability through peer networking and shared best practices,” says Christian. “Joining an alliance of employers focused on controlling benefits costs can be a powerful support system and forces a more disciplined approach to managing benefits,” he adds. Christian ends with this final thought, “For organizations prepared to take ownership of their risk, captives offer financial stability and greater transparency, control, and long-term value. It’s a program well suited for employers committed to strategic leadership in their benefits program.”

The AssuredPartners Captives Team can guide you through the process of joining a captive. We understand the hurdles you face and can help you design a future where your benefits work for you. There is Power Through Partnership.