“We care about our valued employees. They are like family. We give them the best health insurance too. We have Blue Cross!” says the Human Resources Director.
We have heard this over and over again throughout the years. One Human Resources Director even took it a step further. “Why would we even consider Reference Based Pricing? That’s for employers who don’t care about their employees!”
It’s hard to argue against that. Everyone knows Blue Cross is a giant health insurance company accepted everywhere without question. The “Caring Card” is in just about every wallet and purse ready to please at a moment’s notice. Reference Based Pricing you say? Well………. As mother always said, “You get what you pay for.”
Perception is reality. Tell a lie over and over again and it becomes an undisputable truth among the masses. Critical thinking be damned.
But is all of this a BIG Lie? Well-crafted Bull Shit?
Brandolini’s Law states: “The amount of energy needed to refute bullshit is an order of magnitude bigger than that needed to produce it.”
Let’s put on our critical thinking cap shall we?
BIG LIE #1: “We give our employees free health insurance!” No you don’t. You factor in health insurance costs in your labor budget. For example, you budget $60,000 for Janet’s mid-level management position. Since health insurance costs $5,000, Janet’s gross pay is $55,000. After payroll tax and income tax deductions Janet’s net pay is $44, 507. Janet is footing the $15,493 difference, representing 26% of her budgeted allocation, not you. Janet is paying all of it, every penny of it.
BIG LIE #2: Health insurance that guarantees double digit annual rate increases, eroding benefits, and less choices is not as good as health insurance that doesn’t. Blue Cross and all the other legacy health insurance companies are the former. New era health plans provide the latter……..lower costs, better benefits, more choices. This has proven to be true over and over again.
HR Directors parroting uniform think patterns work overtime to avoid change and the disruption it brings every chance they can get. If companies truly want the best health insurance available in today’s market, offering lower costs, better benefits and more choices, they should delegate that decision making authority to the CFO. Formerly silent employees will thank you for it. ……
More take home pay, better benefits, more choices……….Now that’s what we call “taking care of our employees!“
