Strategy & Planning
Employee Benefits Consulting
Helping credit unions structure insurance underwriting and pricing to manage risk
We structure benefit programs to:
- Allow a group to pay for health care claims as they emerge
- Transfer or insure risk that is difficult to isolate
- Help employees navigate the healthcare system
Most standard group health plans never adjust down for the 3 out of 5 years when your healthcare costs are average or below average.
Why pay in advance for healthcare that may never be needed?
Roughly two-thirds of your healthcare spend is a manageable risk. Insuring it actually puts you at a greater risk of paying higher benefits costs.
We structure insurance underwriting and pricing to:
- Manage risk
- Control cost
- Minimize carrier profit-taking
If your medical and Rx plans are fully-insured, ask yourself the following question:
When is my credit union at the greatest risk or exposure to excessive cost and insurance carrier profit taking?
The Answer: During a good claims year and almost always following a bad claims year.
Benefits Due Diligence
A long-term philosophical shift
Premiums are largely a function of your benefit plan design offering, membership geography, demographics, industry, and more.
What is the historic value proposition of premiums paid vs. actual net cost results?
CU Benefits specializes in pinpointing the severity of misalignment between insured premiums paid v. actual non-pooled variable and fixed costs.
The long-term philosophical shift involves moving from transferring risk to managing risk — preventing the insurance carrier from profiting on favorable membership health trends.
- Rising healthcare costs
- Regulatory complexity
- Renewal volatility
- Reactive broker models