Risk & Business Magazine Cooke Insurance Group Magazine Winter 2018 - Page 31

THIRD PARTY ADMINISTRATORS Control Your Benefits Cost Without The Headache I f you think about the last time you had to change insurance companies, you might remember it as a major headache: soliciting new enrollment forms from staff, answering myriad questions about benefit and cost changes, and waiting for new packages and cards to arrive for distribution (hopefully on time). Needless to say, repeating this frustrating process every time you decide to switch insurance companies is nobody’s idea of a good time. The insurance companies count on this aversion to the changeover process, in part, to keep companies from defecting to other carriers. As the cost of health care—and health care benefits—continues to rise, many companies have searched in vain for a solution other than scrambling from carrier to carrier. A great way to gain more freedom and control costs has actually been around for years: third party administrators (TPAs). A TPA allows companies to outsource their health care plan administration processes— such as enrollment, claims processing, and network management—entirely to a third party. The great thing about using a TPA is that you can switch insurance companies behind the scenes without involving your front-end staff in any way. Since the TPA already has all of your company and employee information online, it does not need to be resubmitted every time you change carriers. This saves you and your employees time. Without completing any additional paperwork, your TPA can submit your company information to one or more insurance carriers with no effort on your part other than a simple signature. Have you ever chosen an insurance company even though their quote on a particular line item was not the best? When using a TPA, you can get the most cost- effective package available by dividing your Danny Corriveau, President of Cooke Capital, has a passion for consulting with businesses, large and small, seeking customized Group Health Plan solutions. His experience serving a broad client base enables Danny to respond quickly to the unique needs of both employers and employees enhancing long-term prosperity for his clients.  coverage between two or more different carriers. For example, you can decide to go with Company A for your life and long-term disability coverage and Company B for health and dental coverage. If renewal time comes and Company’s A rates are no longer reasonable, your TPA can switch you over to Company C with just a signature. This approach gives you more control and leverage since you are no longer beholden to arbitrary rate increases. If you don’t like what is being offered, you can simply switch companies at renewal time. That fact alone makes insurance companies much more willing to work with you and think twice about raising your rates. In this situation, it benefits them to try to gain retention through service rather than through your aversion to completing paperwork—a solution that is clearly in the best interest of both parties. A TPA is worth exploring even if you are currently happy with your benefit plan. As every business owner knows, a lot can change from one year to another— especially with regard to insurance. For more information or a consultation on the benefits of a TPA for your business, contact Cooke Insurance at 902-566-5666. BY: DANNY CORRIVEAU, COOKE CAPITAL 31