Ten Tips for Choosing an Advisor to Administer Your Health Plan

oswaldcompanies May 31, 2023

Choosing the right advisor to manage your company’s health care plan is a crucial decision that can significantly impact your organization’s financial well-being. As a CFO, you need a trusted partner who possesses the right expertise, understands industry trends, and can provide tailored solutions to meet your company’s overall goals.

Ten considerations to help you make an informed choice and navigate the complexities of your health care benefits while optimizing costs:

  1. Expertise and Experience: Look for advisors with expertise and experience, specifically in health care benefits and insurance. Consider their track record in managing similar plans and their understanding of the industry landscape, including regulatory compliance and cost management strategies.
  2. Comprehensive Services: Assess the range of services offered by the advisor. Do they provide end-to-end support, including plan design, implementation, employee communication, claims management and ongoing administration? Look for advisors who can offer a holistic approach to managing your health care plan.
  3. Knowledge of Current Trends: Health care benefits and insurance are constantly evolving. Seek advisors who stay up-to-date with industry trends, changes in legislation, emerging technologies and innovative solutions. They should be proactive in identifying opportunities to optimize your plan and mitigate risks.
  4. Customization and Tailored Solutions: Every company has unique needs and goals. Look for advisors who can customize their approach to align with your specific requirements. They should be able to analyze your company’s demographics, health care utilization data and employee feedback to provide tailored recommendations and solutions.
  5. Cost Containment Strategies: Managing health care costs is a top priority for CFOs. Evaluate the advisor’s ability to implement cost containment strategies, negotiate favorable rates with providers and optimize plan design to balance cost and coverage. Ask for examples of successful cost-saving initiatives they have implemented for their clients.
  6. Technology and Data Analytics Capabilities: In today’s data-driven world, advisors should leverage technology and data analytics to provide insights into plan performance, identify trends and support decision-making. Inquire about their technological capabilities, including reporting tools, data integration and predictive modeling.
  7. Compliance and Risk Management: Compliance with health care regulations and risk management are critical considerations. Ensure that the advisor has a strong understanding of legal and regulatory requirements, such as HIPAA and ERISA, and can guide your company in adhering to them. Additionally, they should have risk mitigation strategies in place to address potential issues.
  8. References and Reputation: Seek references and testimonials from other clients who have worked with the advisor. Evaluate their reputation in the industry by researching their online presence, client reviews, and industry recognition. Consider working with advisors who have a proven track record and positive feedback from their clients.
  9. Cost Structure: Understand the advisor’s fee structure and ensure it aligns with your budget and expectations. Request a clear breakdown of costs, including any additional fees for specific services or consulting hours. Compare the fees and value offered by different advisors to make an informed decision.
  10. Compatibility and Collaboration: Building a strong working relationship with your advisor is essential. Assess their communication style, responsiveness and willingness to collaborate with your team. Look for advisors who are committed to understanding your company’s goals, values and culture.

By carefully considering these factors, a CFO can select an advisor who not only meets the company’s needs but also becomes a trusted partner in managing the health care plan effectively.

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Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysisView our privacy notice.