By Bill Rusteberg
“Mob rule or ochlocracy or mobocracy is a pejorative term describing an oppressive majoritarian form of government controlled by the common people through the intimidation of authorities.”
We’ve seen mob rule raise it’s ugly head from time to time in group health insurance over the years. Weak corporate leadership and a “Please-Everyone-At-All-Costs” HR department creates a fertile environment for frenzied agitators bent on self-interests.
A mob forms becoming more emboldened as authorities give voice to their concerns by questioning corporate decisions of yesterday. Finger pointing begins searching for blame growing in ferocity. Stakeholders become defensive, paralyzed with inaction to ensure no further scrutiny comes their way.
Nothing ever good comes from mob rule.
Years ago we moved a client to Reference Based Pricing back in the day when Reference Based Pricing was new to the market. Plan members hated it. Their anger grew to a fever pitch. Their entitlement mentality was challenged and they didn’t like it. “My doctor won’t take my insurance! one screamed. “My husband has cancer and no one will see him. He’s going to die!” said another. Emotions ran high. The mob grew.
In this case strong leadership stepped in. It began early on when one of the key division managers complained about the company’s “crappy insurance.”
“You don’t have to take our insurance. It’s your choice” said upper management. Word got out, the mob disbanded.
This was in 2007. The company continues the same insurance plan to this day. The mob is gone.
This outcome is rare. Most plan sponsors cave in to mob demands especially among political subdivisions. When it’s other people’s money nothing else matters except personal gain based on financial and benefit interests.
There’s a tinder box in every plan waiting for a match. Corporate fire extinguishers required. Or the whole damn thing will burn down.