“Complaining is not a strategy.”-- Jeff Bezos, Founder and Chief Executive Officer, Amazon.com
It’s no secret that the insurance benefits industry is rapidly changing, probably at the fastest rate in its history. United Benefit Advisor’s Chief Executive Officer, Thom Mangan, has been outspoken about the fact that advisors who don’t keep up with the changing benefits industry will quickly get left behind. Mangan is often recognized for his drive to stay one step ahead of the game and was recently honored with the CEO Leadership Award from the Institute of HealthCare Consumerism (IHCC) as a result of his leadership in this area. In this brief interview with the IHCC, he shares his thoughts on the future.
As the complexities of the Patient Protection and Affordable Care Act (PPACA) continue to challenge business owners and HR professionals, UBA continues to lead the industry by sharing proprietary research and analysis, often utilized by journalists and media outlets looking to help employers and consumers navigate the increasingly complex world of insurance benefits.
When it comes to managing employee benefits in the era of health care reform, it’s easy to want to take a “head-in-the-sand” approach but the clock is ticking and soon everyone will be forced to comply with the all of the PPACA regulations. Employers are faced with the dilemma of trying to contain the consistently upward spiral of health care costs while at the same time concerned with retaining top talent in an increasingly competitive market. Frankly, it can certainly be overwhelming and hard to know where to start.
United Benefit Advisors and its nearly 200 Partner Firms, who collectively work with 36,000 employers understand these frustrations all too well. However, in working with this volume of employers, they know the strategies that will make the job of designing cost-effective, yet attractive employee benefits a lot easier – while still taking PPACA compliance into account. In fact, these tried-and-true benefit strategies have proven themselves worthy – last year alone, UBA Partner Firms helped their employer clients save an average of 5.2 percent on their medical renewal in 2012, for a combined $584 million in annual medical plan cost savings.
By Thomas Mangan, CEO, United Benefit Advisors
On the surface, private exchanges seem right in line with American consumerism: Provide an open platform and let each employee pick the exact plan that meets their needs. And for employers, a defined contribution approach to health care coverage seems like a great way to wash their hands of all the compliance headaches. This may very well be the future, and many are racing to market with exchange platforms. But most have built their platforms in the hopes they will come. As I have been discussing with leading benefit advisors, right now the barrier of entry is too high. Not only do these platforms not have the critical mass to make them affordable, there are a number of other hurdles that employers need to be aware of when considering these solutions, including: