Hixme Think

Beyond Traditional Group Insurance – Personal Ownership

What Benefits Advisors Need to Know About the Value of Personal Ownership

Denny WeinbergDenny Weinberg

For the past 50 years, the most radical transformation in health benefits was the mainstreaming of the Managed Care movement in the early 1990’s. During those years, medical inflation flattened and even turned negative early on.

That movement also helped raise awareness and then increase quality while containing costs. But it set an unachievable expectation that medical inflation would be a thing of the past, especially for employer sponsored benefits.

Now 25 years later, health care inflation is roaring back as a strong economy replaces the slump of 2008. The recently released Kaiser Family Foundation Survey of Employers reports that family health benefits for larger employers is increasing at an annual clip of nearly $650 per worker for each of the last 3 years. Once again, this is one of the most out of control costs for employers.

… a whole new model and approach is critical to American employers and workers. Companies like Hixme are part of a new movement that replaces the grueling traditional benefits treadmill, reducing real costs and improving workers’ benefits at the same time, despite overwhelming external dynamics.

Unfortunately, solutions from fatigued benefit advisors after all these years have proven to be reactive, often short sighted and sometimes contradictory. It’s easy for an advisor to conclude that there just aren’t any more rabbits to pull out of the hat. So employers are left with these choices:

It should not be surprising to advisors that employers need new models, since the underlying traditional employer group model is just too restrictive to meet the expanding demands of employers and their workers. Traditional limitations include:

The personal ownership solution

Given these factors, a whole new model and approach is critical to American employers and workers. Companies like Hixme are part of a new movement that replaces the grueling traditional benefits treadmill, reducing real costs and improving workers’ benefits at the same time, despite overwhelming external dynamics. In this new and emerging hybrid category, companies such as Hixme are emerging. As an insurtech/fintech hybrid, Hixme offers a core health plan with a series of innovative safety nets through a technology enabled platform we call the “WorkPlace Market.” The result? Large employers provide their workers a true personal ownership solution that is largely employer funded. Backed by algorithms that consider each family member’s needs and preferences, workers see a comparison of multiple coverage options and costs. They are empowered to select the Right-Fitting Coverage for each family member structured within a partially self-funded, ERISA Compliant, Group Health Plan.

ABOUT THE HIXME THINK BLOG: Authored by one of the health insurance guru’s Denny Weinberg, postings reflect market trends and the powerful emerging movement toward true portability and personal ownership by workers and their families. These postings will follow emerging goals and actions of the Trump Administration, and the US Departments of HHS, Labor and Treasury, and also gridlock in the new Congress.

 

Hixme CEO Denny Weinberg is a 25 year veteran executive in healthcare financing and operations. His broad background includes a 20 year tenure as Co-Founder & Executive Vice President of WellPoint and CEO of a number of WellPoint’s largest and more unique operating companies. Denny also manages a portfolio of early stage companies in the Health/Medical arena as well as other industries. He has also served as board member, advisor and consultant to both private equity-backed, and publicly traded Blue Chip companies.

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