Employer Need: To have complete knowledge and understanding of all cost-drivers within their employee benefit program.
BSI Overview and Solution: Lack of fee disclosure and under the table agreements in the past few years was brought to light when New York Attorney General Elliott Spitzer filed suit against a number of well known insurers and brokers. The majority of these problems were not related to health insurance, but many of the same issues exist within the health insurance industry – albeit on a smaller scale.
Many brokers and consultants within the industry have established “vertical” blocks of business with one or two insurers in order to maximize bonuses and overrides. There are also rebates from pharmacy benefit managers (PBM) paid to brokers and / or third party administrators that are not disclosed to employers. Insurers also may retain a portion of negotiated network or pharmacy discounts. BSI does not hold a positive view of such practices. |
