Sounds Like a Plan

“Most organizations deal with either local brokerage firms that are not visible in terms of national influence or large national players that do not treat the mid-market area properly,” said Glass McGriff, senior vice president. . “The company can be headquartered in Atlanta, with offices in Orlando, Dallas and New York. We specialize in understanding how different state laws affect these private equity groups in many states. There are different funding mechanisms, different products, different carriers, the whole organization should be considered as a whole. ”

Some PE companies are buying health insurance to cover their portfolio companies cheaply, which has been exacerbated by the reduction in the number of reputable carriers, as well as American Cares Act restrictions, pocket-maximum, and wage-reduction scenarios.

Glass explains. “It becomes difficult for groups who want to create in their benefit programs. In fact, every product is very fragmented. You can have HMO products with a narrow network, but you want consumer health products with a national network. Dentistry, Sight, Life և Disability can have separate carriers that do not talk to each other. “Consulting and intellectual capital is required to combine all this in a cost-effective way.”

McGriff is the fifth largest broker in the country, which includes commercial real estate և losses, corporate bonds աշխ warranty services, cyber, management liability, captives և alternative risk transfer programs, small business, employee benefits, securities insurance և personal lines.

McGriff’s approach is reinforced by the RDI (Risk, Direction-Encouragement) approach developed in 2008 by Glass’s Vice President Brian McGrath. The RDI model is ideal for navigating the PE sector, which McGriff officials say is generally underestimated.

“For a private equity group whose 100 businesses represent 15,000 employees, we can provide the level of services և the obligations they did not receive,” says Glass.

Delivery of goods

McGriff offers a unique strategy, providing customers with all possible financing options, ensuring a balance of risks with the highest level of return. Using the RDI philosophy, McGriff creates programming that allows customers to share risks, encouraging employees to engage with providers, and ultimately become better consumers of healthcare.

According to RDI, employees receive incentives to establish or maintain relationships with primary care physicians. In this scenario, the employer funds voluntary behavioral incentives, reducing health care costs, and in some cases, identifying life-threatening conditions among participants. Customers who fit this model increase their medical budget by less than 2% per year, not to mention the millions of dollars saved on health plans.

Kouchner, a New York-based real estate developer, is successfully testing the overall effectiveness of the model, says Glass. With 27 employees and 800 employees, Kouchner has taken into account many variables in determining its place in the standard, fully insured market.

In 2018, McGriff conducted a study on the Kouchner insurance program and found that the company had overpaid for its health care costs. The broker helped adjust the new plan, reducing costs immediately before the upgrade, and then including the new plan in the second year.

Due to the change in the healthcare sector, Kouchner saved huge savings in 2020, and so far the savings in 2021.

“There are incentives for regular physical exams, lab work, and then health risk assessments,” says Glass. “The company creates monthly initiatives related to the preventive measures taken to avoid catastrophic diseases. The key to good health is voluntarily acting items that are rewarded. ”