Andy Neary argues most RFP questions for insurance brokers miss the point. He recommends three focused questions instead: Can they lower medical and pharmacy claims? Will they risk their consulting fees on results? Do they accept bonuses tied to performance?
Chapters
Alright, we're knee deep into the fourth quarter and you just might be looking to complete an RFP for an insurance broker this year. Now, I must admit, I think the RFP should stand for really frickin pointless because most of the time it is. Why? You're asking the wrong questions. Finding out how big the brokerage firm is, how many attorneys they have on staff, or just how many clients they have doesn't help you address the number one threat to your health plan, and that's the cost. So if completing an RFP for you is a must this year, there are three simple questions you need to make sure you include and focus on inside the RFP. Alright, here's question number one. Over the next 12 to 18 months, what is your firm going to do to help us reduce the size and frequency of the medical and pharmacy claims inside our plan? Because if you're truly interested in reducing the cost of your health plan, that's all that matters. Question number two. Does your firm accept consulting fees? And if so, are you willing to put a percentage of that consulting fee at risk? This is a quick way to figure out which firms out there are truly willing to put their compensation in alignment with your goals. And question number three, does your firm accept insurance bonuses and overrides from the insurance companies? Because if they do, I'd be a little leery about the advice you're being given. All right, if you're interested on which other questions you should include in the rfp, click the link below and we can set up a call. And until next time, bear down, focus on the target and strike out the status quo.
