It’s hard to believe that in 2016 a business model exists where, every year, a company representative tells their customers that prices are going to go up, the level of service is going to go down, and by the way, the company rep is going to give themselves a raise at the customer’s expense because their commissions are a percentage of those prices which have just increased.
Welcome to the backwards world of employer group benefits, whose distribution model has not changed much in 50 years. What is most surprising about this model is the tolerance level for this dynamic, given that this affects what is arguably one of the most personal and critical services an employee provides for themselves and their families.
We’ve been more than happy to ditch our local Blockbuster for Netflix, our neighborhood record store for iTunes, our friendly travel agent for Expedia, and taxi drivers for Uber (not a big decision there), yet there is a natural resistance to simply accept employer group benefits for what it is. This must be another disappointing example of “herd mentality“.
The good news is that this insanity is coming to an end! There are innovators and entrepreneurs hard at work creating new business models, service offerings, and insurance plans that will “bring back the benefit” to the employee. Stay tuned….