Benefits Due Diligence
Offering a long-term philosophical shift
We all know insurance carriers take a risk in exchange for level premium rates. And those premiums are largely a function of your benefit plan design offering, membership geography, demographics, industry, etc. The question that we look to answer when conducting due diligence is – what is the historic value proposition of premiums paid vs. actual net cost results. We often find a gap or misalignment between insured premiums paid v. actual non-pooled variable and fixed costs. CU Benefits specializes in pinpointing the severity of this dilemma. The outcome often results in a restructuring of the corporate financial management strategy – a long-term philosophical shift moving from transferring risk to managing risk occurs preventing the insurance carrier from profiting on favorable membership health trends.
Free Whitepaper: 7 Secrets to Lower Your Employee Benefits Cost This Year
As organizations look at budgets each year, one area that will undoubtedly undergo intense scrutiny is the cost of employee benefits. It is a particularly difficult item to manage due to the increasing cost and utilization of health care, not to mention compliance burdens. HR and finance managers need to take a long-term view and commit to developing a multi-year strategy instead of relying on short-term tactics to contain employee benefits costs.
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