Bernhard Opines on Fake News – PPO Discount Game

Jeff Bernhard – President of Continental Benefits

Does everyone realize that a discount guarantee is really useless/ineffective for a self-funded offer/RFP? When does a discount ever lead to lower spend? How silly!

Discounts are merely one factor/variable, of many, used to determine what your total medical cost might be. In what other business do we guarantee the factor instead of the result? Weird right?

Continental Benefits guarantees the total medical PEPM cost, which is the result of all the factors/variables (discounts being only one of them) for a self-funded medical plan year.

To show you how silly this is, this is like watching a pro golf tournament and determining the winner based on the international ranking (factor) of the pro player instead of the actual player score (result). When does the number #1 ranked world PGA player ever win a golf tournament? Answer: Less than 15% of the time.

Stop guaranteeing factors (discounts) and guarantee the result (total Medical PEPM). Results matter – not factors.