Health & Welfare Insurance Program Cost-Reduction Services
Our Health and Welfare Insurance Sourcing Specialists are former practitioners, and have extensive experience helping companies address their unique health and welfare benefits challenges.
Health Plans & Benefits are non-wage compensation that typically include medical, dental, vision, short and long term disability insurance, life insurance, and may also include related support programs like wellness services, pharmacy benefit management or family leave administration.
Health Plans & Wellness Insurance programs can be significant expenditures for an organization, but as one of the only categories that impacts the entire employee population, a cost effective and unique Health Plans & Benefits program can create a competitive advantage for attracting and retaining top talent. As organizations differentiate their Health and Welfare Benefits strategy, they must also balance the costs, risks, and fiduciary duties involved in the purchasing and administration decisions associated with H&W Insurance.
Source One understands the challenges organizations face when sourcing a category as complex as Health and Welfare Insurance Plans, including price fluctuations & healthcare inflation, regulatory changes to healthcare laws, or new political mandates. Our team of Health and Welfare Benefits Sourcing experts can help mitigate risks and optimize the H&W Benefits program costs through our fully customizable strategic sourcing process. Our Health & Wellness programs strategic sourcing due diligence typically includes:
- Evaluate Current State: Source One conducts a thorough review of health and welfare supplier or Health and Benefit broker contracts to understand scope of services, unique handling requirements, and termination & switching costs
- Interview Stakeholders: We interview all critical stakeholder’s to determine how the Health and Welfare Benefits services impact benefit cost
- Analyze Claim Costs: Our H&W Benefits strategic sourcing experts review claim frequency and severity to identify trends and drivers
- Identify Best-fit H&W Benefits Providers: Source One identifies a bench of Health and Welfare Insurance suppliers with the right mix of technical expertise, industry knowledge, innovation and technology to enable cost effective benefit plan design and administration
- Support Implementation: We go beyond providing recommendations to fully support the implementation process and ensure you get the most from your Health Plans and Wellness Benefit supplier base through our Supplier Performance Management
The more competitive the talent marketplace is for an industry, the more costly the associated Health and Benefit Insurance programs. Source One’s Health and Welfare Insurance industry knowledge and category expertise allows us to supplement your organizations’ strategic sourcing department to ultimately decrease your insurance, administration, and benefit costs, while simultaneously improving your employee service and satisfaction. Whether you want to better understand your current rates compared to the market as you prepare for contract negotiations, or you want to run a sourcing event for all of your Health and Welfare Benefit needs, contact Source One today to execute on your Benefits strategy.
Strategic Sourcing for Health & Welfare Benefits Insurance: Effective Strategies
The Health and Welfare Benefits Insurance marketplace of providers is diverse. Most companies use benefit consultants or insurance brokers who play a critical role in the design, purchase and administration of a company’s benefit program. Because of the diverse and complex nature of the category and overall supply base, sourcing strategies in this category are most effective when Source One leads the broker selection process. By leading the suppler selection process, Source One can:
- Control the cost discussion including brokerage fees, commissions, and insurance premiums
- Align Health and Welfare Benefit sourcing strategies with our client’s financial goals
- Negotiate risk sharing arrangements with broker(s)
- Ensure financial targets are built into the broker agreements
Source One can also support the Human Resource function in its Supplier Management responsibilities. By supporting HR, Source One can effectively add value during the Benefits Vendor RFP process by ensuring that brokers follow sound sourcing practices when retaining insurers and other benefits providers and that the cost benefit analysis of insurance and benefits alternatives are based on metrics and goals important to our clients strategic and financial objectives.