Carrier Negotiations and Cost/Benefit Analysis

Once a renewal strategy has been developed, we conduct an extensive market search and request- for- proposal activities with our carrier partners and vendors that have proven operational and administrative abilities to manage your benefit and liability insurance programs. In a typical engagement, we will prepare detailed bid specifications for carriers in cooperation with you, provide you with a detailed analysis of proposals received, and counsel you regarding contemplated changes in programs or levels of coverage and benefits. We pay particular attention to the preparation of comprehensive bid specifications as the quality of input or quotes from carriers depends on the quality and thoroughness of the specifications. Our analysis and comparative summaries of proposals are prepared on a uniform basis, enabling you to select the appropriate options. We provide recommendations as part of the process as well as a narrative as to why these solutions meet client objectives

Following receipt of offers from the insurance companies, TPA’s or other vendors, we analyze each component/factor in the rating calculation, compare to norms, and aggressively negotiate on behalf of our client’s interests, needs and budget. Leveraging Brown & Brown’s extensive experience and expertise in funding and underwriting methodologies we have been successful in negotiating cost effective contracts with carrier partners and vendors.

We will work with the BGCSPS to monitor insurance plans performance and costs. This includes strategies related to coverage requirements, funding methodologies, modification in coverage design as necessary and maximizing carrier relationships in order to achieve the best overall value of your insurance programs. Other areas to explore may include:

Benefits Cost Containment Strategies

  • • Review funding (self -insured, shared savings and partially self-funded) methods and options after a thorough review of client objectives including budget and risk tolerance.

  • • Comprehensive analysis of current benefit plan(s) to assess cost drivers, unaligned service delivery, benefit administration, network management, stop-loss arrangements, utilization and lifestyle management programs, employee communication/awareness, incentives (if any) for plan or alternative program participation, etc.

  • • Explore the concept of direct contracting with provider groups, smaller select network and transparent PBMs (Rx network management) to maximize efficient health care dollar expenditures (ACOs).

  • • Explore the development of a wellness or lifestyle management incentive whereby participation in screenings and other measureable metrics would result in a minor benefit enhancement or perk.

  • • Structure plan designs around incenting delivery of care at lower cost access points such as primary care carve outs, i.e. Qliance. Also, focus education on urgent care vs. emergency, preventive care, self-care and consulting nurse services.

  • • Explore the possibility of an integrated disability management program, coordinating occupational and non-occupational claims.

  • • The development of proper measurement tools is critical to the planning process. We benchmark data, in order to identify trends and directions for cost containment activities

  • • Data analysis that is clearly communicated and presented is vital to effective negotiations with insurers. We believe that data is power if used properly in a negotiation process along with consultant expertise and Brown & Brown clout both for cost reduction and enhanced contract provisions.

  • • Increasingly popular cost control measures for alternative plans are claims and dependent eligibility audits which review claim payment accuracy, optimal claim paying performance, fiduciary responsibility, and reinforcement/confirmation of dependent eligibility. These programs typically return 300 - 500% of their costs by uncovering plan adjudication and coding errors, ineligible spouses due to such things as non-verification of married or domestic partner status, divorce or even multiple spouses/partners on plan in error. Another area commonly found is ineligible grandchildren or guardian status dependency.