“Don’t look at Premium as compensation, look at the claims generated by that member”
By Chris Barakat
It’s crazy to think that this line had most benefits brokers, CEOs, CFOs and HR personnel going WOW at this year’s Shrm conference.
“Don’t look at Premium as compensation, look at the claims generated by that member”.
If Joe gets a $65,000 salary and he wants a $20,000 pay rise, so Joe pulls his boss aside and says “Boss, give me a $20,000 pay rise”. Joe’s boss says, “get out of here”. But Joe takes Skyrizi ($25,000/injection).
Joe’s actual compensation is $65,000 + $100,000 (4 months of Skyrizi). Now Joe’s real compensation is $165,000.
You can’t fire Joe because he costs you almost 3x what you were prepared to pay him (that’s illegal), but you can change the way you pay for that Skyrizi, so the company pays a better price. If that means Joe just can’t waltz into CVS and needs it mail ordered for a much better price, then so be it.
Employers need to stop looking at premium as the basis of compensation, start looking at claims and make decisions that get the member what they need, but ENSURE you pay the right price. The traditional approach doesn’t do this.
