An excerpt from the preceding post on this blog (Florida Business Coalition Set to Revolutionize Health Benefits Purchasing) says it all. Some plan sponsors are better at managing fiduciary duties than others. They take these duties seriously while others simply ignore common sense, fail to understand health care financing and rely on vested interests memorialized through contracts of adhesion.
Perhaps the finger of blame for the high cost of health care should be directed at the payer, not the medical provider community – RiskManagers.us
“A central requirement of ERISA regulations is the role of the company as fiduciary. There’s a growing recognition that companies are failing in their fiduciary responsibility given the vast waste that is being purchased in a typical health benefits package. With corporate Risk Management groups taking notice, companies realize that they need to exercise the same oversight on health benefits as they do on retirement benefits . Further, as company shareholders recognize that health benefits are the second biggest cost for most companies and that some companies are spending 50% less than others, it’s clear there is an earnings impact to under-performing health benefits.”
SOURCE: Article written by Dave Chase (See full article here: Florida Business Coalition Set to Revolutionize Health Benefits Purchasing
“Half of health care doesn’t add value” – Harris Rosen, Founder of Rosen Hotel & Resorts