Great Lakes Benefit Group is an Employee Benefits Consultancy located in Royal Oak, MI . Our belief is that the American health care system as it exists today is fundamentally broken and favors insurance companies, big pharma, and healthcare providers.
We are a data-driven firm that helps public and private sector employer groups, unions, and trusts to identify the excesses in the health care supply chain while creating a Smart & Disruptive approach to maximizing benefits and containing costs.
Smart & Disruptive
Are you tired of the annual benefits dance?
This year’s renewal feels just like last year and three years ago as the same tactics have been implemented for over a decade. Status quo has boiled down to several things: shift employee costs, reduce benefits or limit access to care by offering narrow networks. Employers have been conditioned to believe that the best they can hope for is a "less bad" rate increase.
The C-Suite requests HR to provide health care budget projections for the upcoming plan year and the culture at many organizations is to simply preserve the status quo. Insurance carriers realize this and benefits brokers/consultants know the culture as well. The renewal is presented in a "spread sheet" at 9-12% and the broker/consultants “negotiate” a 6% increase which is then compared to national benchmarks of 7%. Check the box. Healthcare is renewed and see you next year. This passes as healthcare risk management for most organizations.
Most health insurance brokers get paid a commission based on a percentage of the premium paid. Brokers do not have a financial incentive to contain premium increases therefore the higher the health-care spend, the more commissions generated.