What business are you in? You get asked that all the time, and your answer is likely along the lines of “our company manufactures widgets”, or “we develop custom software”, or “we own and operate a chain of restaurants” … or many other answers. These are normal, factual answers. But if you have employess – and your business offer a healthcare plan – you’re also in another business. And it may not be obvious.
Guess what? You’re in the health insurance business.
“C’mon. That’s a foolish statement.” Not really. Regardless of the industry code on your tax returns or in your annual filing with your state government, your business is increasingly in the business of providing benefits and healthcare plans for your employees. It’s a material cost to your business.
“That makes no sense. We’re focused on sales of our products and services. And we manage our costs to maximize our profits.” Yes, that’s what smart businesspeople – like yourself – focus on constantly. Grow revenue … reduce costs. But guess what the #2 or #3 cost item is on the income statement of many businesses? It’s the employee benefits plan. And the benefit cost that is growing the fastest? Health insurance premiums. If you’re focused on costs to maximize profits, then you’re in the health insurance business (whether you know it or not).
“I don’t have time to look at that stuff. I have a broker that handles all of that for me.” That may be true. But how much can your broker negotiate for better rates, especially if your health insurance plan is through a traditional carrier? The answer is … not much … or not at all. And the annual premiums are growing at an accelerated pace. It’s a big expense that’s getting even bigger. And if your broker is only giving you options from traditional insurance carriers, then your costs are growing, and you can’t do anything about it. Because the traditional carriers are driving the cost increases to improve their revenue. And it negatively impacts your profits.
“Ok. I get the point. This is one of my top costs, and I need to pay closer attention. But I don’t want to give up the quality of benefits that my employees like.” Guess what? You don’t have to give up anything (other than your higher payment to the carrier). Smart businesspeople – like yourself – have implemented healthcare plans with lower costs and better benefits. (You read that right.) Lower costs of 20%-30% lower than the traditional plans that keep growing in costs.
If your business offers an employee healthcare plan, you are in the health insurance business. And along with your “main” business, it’s time to manage both to maximize your profits.
Contact us today to learn how we can help you get there.
