Employers struggling to deal with the effects of the Affordable Care Act (ACA) need to take a more proactive approach, says P.J. Insana, a partner at Britton Gallagher.
“You need to sit down and collectively decide that it’s a priority to take control of the situation,” Insana says. “You can’t control certain things, but you need to decide as a company that to the best of your ability, you are going to take control of this process.”
Since the ACA was signed into law in 2010, there has been a great deal of dialogue from both sides of the political spectrum on the merits of the initiative. But what cannot be argued, Insana says, is the significant burden that it has placed on employers.
“It has affected small and large businesses,” Insana says. “It has put an enormous strain on the working interests of our country.”
Insana believes there is a solution, however, and it centers on the ability of employers to turn the accountants, lawyers and health care partners that they work with into advocates for their business.
Smart Business spoke with Insana about how to create these advocates and build stronger relationships with service partners.
Where does the beleaguered leader begin in order to take control of the effects of the ACA?
It starts with having an advocate that can help execute the necessary steps to control as much as you can. A consultative adviser can do much more than place coverage. They can be an educational resource who can help you understand complicated, changing mandates that dictate health care reform compliance.
It’s more challenging than ever to feel good about your health care and benefits program because it costs more today than it did last year and more than it did 10 years ago. You have a cost issue and an information issue and that’s where you need to rely on your adviser to help you get through it. Your adviser should be able to develop a strategic plan to help you with health risk management and wellness programs, along with other key initiatives to help you manage your costs.
It can’t be a transactional approach where you’re just chasing rates or reducing benefits. Your focus should be on finding a partner that can develop a model and an approach where the budget drives the benefits rather than the benefits driving the budget.
How do you evaluate your adviser?
Your benefit adviser should help you execute as much control as possible over the challenges of cost and information present in today’s benefit world. To evaluate whether you have an effective adviser and partner in this effort, you need to examine the relationship and create a sense of accountability. How are you interacting outside of renewal time? A large part of successful benefits management is developing a strategic approach outside of renewals.
This plan should include financial, legal and wellness components. Does your adviser help you implement the plan that is developed and measure the overall effectiveness of the programs?
Will they advocate on your behalf and not that of the insurance carrier? What kinds of steps will be taken to make sure you can continue to manage these new components going forward? What does the staff look like at this firm and how will it be leveraged to help you? An adviser should make you feel good about what you’re buying, help you feel removed from the process and strive to make your life easier. The key is your willingness to make a long-term commitment to this process.
How much room is there to enact change?
The expertise that can be provided on the ACA and the support that employers can receive is limitless. An adviser making knee-jerk reactions to changes that come out regarding the ACA is costing clients money. There are always opportunities to work through the language and come up with good ideas.
The right partner won’t talk to you about obstacles, but will focus on opportunities to maximize the value you get out of the relationship. They will develop a complete, consultative package helping you boost employee participation in wellness programs, advising on the right investments for 401(k) options and ensuring your human resource initiatives are in compliance when administering parts of your plan.
Insights Employee Benefits/Risk Management is brought to you by Britton Gallagher
