Insurance brokers are leveraging technology in a new way to make valuable health care recommendations to their clients, claims a new report from the Healthcare Performance Management Institute.
"With rising costs in every aspect of the health benefits process, brokers and their customers have struggled to find real solutions," says George Pantos, executive director of the institute.
Simply adjusting plan costs and establishing stand-alone wellness initiatives within an enterprise is not good enough anymore, report authors of "The Changing Role of Healthcare Brokers" write. That's where Healthcare Performance Management (HPM) comes in, a technology-enabled, data-driven business strategy which controls health care costs.
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"With HPM, we're going into these clients and really taking a forensic approach to looking at where their inefficiencies are and what we can implement that a lot of the health insurance carriers aren't offering, or a lot of the brokers, for that matter," says Tony Cannata, managing partner of the Atlanta-based brokerage firm The Clearview Group. "We're finding that the plans are not being managed by the carrier because it would take a lot more resources than they already have, which would obviously affect their profitability — that's a lot of where we see the opportunity with HPM."
HPM execs say their model can help brokers and their customers use data about key workforce population risk factors and trends to make rational investments in preventive programs within a specific employee population. The data can then be leveraged to effect desired changes in health outcomes.
"By incorporating HPM into the equation, brokers don't just cut costs for their customers — they leverage vital data into solutions that reduce the risk of catastrophic health conditions," Pantos says. "With commissions being cut by many of the health insurance companies, brokers need to find a new way to create revenue streams while enhancing the value they bring to their customers."
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