In many ways, things have been pretty good lately for benefit advisors. After years of dread and uncertainty in a post-ACA world, many brokers have recently rediscovered their purpose and passion. But at the recent Q4Live conference in San Diego, founding partner and coach Kevin Trokey reminded attendees that this emerging landscape presents challenges of its own.
“A new panic is setting in around our industry that's completely different than any we've seen before,” he said. “The heavens have opened, the angels are singing and there's a white light of opportunity shining down on the industry.”
But in the face of all the newfound optimism and possibility, a growing number of brokers are at risk of believing the industry has passed them by, Trokey said.
“If you go online for 10 minutes, you see the success stories. You hear about advisors who are generating 30 percent or 40 percent savings for their clients, getting prescription drugs internationally for pennies on the dollar, direct primary care physicians who are changing the way medical care is delivered. And it's easy to think these trends are taking place on a broader level than they really are. It's easy to fall into the trap of thinking every other advisor is putting every solution in place for every client every single day. But it just ain't the case.”
The danger in this misconception, he said, is that it can lead some to panic and make bad decisions in an effort to catch up. “I see advisors running out with new solutions before they're ready, before their team is ready, before their clients are ready or even before the market is ready,” he said. “I've heard from brokers who've rushed these ideas out to prospects, and they're so passionate and excited that they've scared the prospect or client straight into the arms of a more conservative, more traditional competitor.”
He noted that while the enthusiasm that's driving the industry forward is vital, belief isn't enough. “No matter how passionate you are, if you're not ready to execute, the outcome will be tragic,” he said. “With every client, stop and ask yourself, “What is my goal? Is it to sell them on a particular solution or make them more successful at what they do?”
As soon as the buyer senses an advisor is there to push an agenda, he added, “the game's over. But when you take the time to learn what may be holding them back, when you can bring any number of solutions, strategies and ideas to help them achieve that success, now they know you're there to help further their agenda.
“We're building a new normal. Sometimes we get so excited about where we're going that we overlook the hard work needed to get us there,” he concluded.
This focus on hard work and a measured approach was an ongoing theme throughout the two-day conference. Here are a few of the highlights.
|The enthusiasm bulldozer: Q&A with Tim Doherty
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“Big ideas are great, but without a plan, they're just a set of random activities,” noted Q4intelligence partner Wendy Keneipp, as she kicked off a candid Q&A session with Tim Doherty, president of Pinnacle HR Solutions.
The pair discussed both the challenges and successes Doherty has experienced with his clients while introducing and instituting big ideas.
Doherty described his initial experience sharing innovations and new strategies as “accelerating from 0 to 60 while trying to change the tires at the same time.” As he tried to explain the ideas to HR leaders and members of the C-Suite, “It dawned on me that they're convinced the world is flat, and I'm trying to tell them it's actually round.”
Keneipp recalled going to dinner the night before and encountering a man yelling and preaching at passersby. The result? Most people quickly moved to the other side of the street—a similar response to what overeager brokers should expect when prospects and clients become alarmed or overwhelmed.
“It's a frustrating feeling,” Doherty noted. “You feel like you have the answers, but you can't get them over that chasm.”
Doherty recalled one client who wanted to institute a very aggressive transition to reference-based pricing. How did it go? “During the early stages, I was a disaster,” he admitted. “I would go into these meeting and just do a brain dump. There was no strategy behind it.” He could see the client was concerned that they would be stuck doing all the work.
“I wasn't making it clear that we were going to quarterback the process and help bring all the components together,“ Doherty said.
After successful transitions with several clients, Doherty began hosting a monthly CFO roundtable, where he shared some of the exciting and innovative strategies taking place in the benefits world.
Although he educated the group about the many misaligned interests and other serious issues within the health care and benefits industries, the CFOs weren't always ready to immediately embrace the solutions he presented. He attributed their hesitation to the fact that he didn't yet have a “glide path” in place. Instead of showing them how they could “take small bites of the apple” and move forward at a comfortable pace, Doherty said he was pushing his own pace onto them. As one CFO put it, “You're very well-informed, but this is overwhelming.”
Over time, Doherty said the meetings evolved into a back and forth conversation with the CFOs, who became increasingly excited and often stayed late to continue the discussion. “We definitely have some momentum behind it now,” Doherty said, “and the CFOs are taking these ideas deeper into their organizations.”
The easiest solution to implement in his area so far? A transparent fiduciary PBM. They're also really excited about direct primary care, Doherty said. He emphasized that the conversation always has to start with figuring out what a company's tolerance for change might be, and then working together to figure out what will work best in their environment.
He described a “crawl, walk, run, sprint” approach when it comes to change, emphasizing that the whole team must be on board in order for it to work.
And that goes for not only the client and their employees, but your own employees as well. Doherty recalled one of his team members telling him, “This innovation stuff is exhausting.” The best way to make it manageable? Take it one step at a time.
|The six words that killed American health care: Dr. Josh Luke
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Although he spent years as a hospital CEO, Dr. Josh Luke's relationship with health care is a very personal one, heavily influenced by his grandmother's battle with disease and his experience as a caretaker for his mother.
Luke told attendees how his experience as a nursing home administrator and hospital CEO opened his eyes to the many issues and problems within the U.S. health care system.
Although the list is extensive, Luke focused on six key words that he says killed American health care: “Your insurance will pay for it.” He first heard those words back in 2003 after he and his wife asked the hospital for a price sheet preceding the birth of their third child.
“When I heard those words,” Luke said, “I had no idea they would stick with me for so long. I was duped, just like everyone else, that my insurance actually was paying for everything.”
He said his experience as an expectant father in 2003 proved that there was no transparency when it came to hospitals, and the latest stats show that even today, less than 20 percent of Americans hospitals today post their prices.
“Wouldn't it be great to have a business model where even if you do post your prices online, they're just guesses?” he asked attendees. “Whatever we decide we'll bill when we're behind closed doors and the patient is under anesthesia, that's what we'll bill for. When it comes to transparency, we have a long way to go.”
Luke told a hypothetical story about a consumer taking their 16-year-old daughter to buy her first car. One one side of the road sits her dream car with a sticker on the windshield that says $16,000. Directly across the street, an identical car has a price tag of $50,000. “Which way would you turn?” Luke asked. Of course, most would choose the cheaper car, but Luke noted that if insurance is paying, the average American might be inclined to go for the more expensive option.
His point? Americans must become engaged health care consumers, while businesses have to create an environment that encourages this, using incentives such as DNA testing and integrative medicine.
In his book, “Health-Wealth: 9 Steps To Financial Recover,” Luke details ways brokers and their employer clients can provide “enhanced, personalized and specialized health care options for employees, while reducing spending.”
Luke noted that “the goal is to identify two or three steps that your clients can implement that make sense for their company.” Realistic change often means slowing down and doing it right.
Look for part two soon, featuring insights from Dr. Alex Lickerman and Deb Ault.
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Paul Wilson
Paul Wilson is the editor-in-chief of BenefitsPRO Magazine and BenefitsPRO.com. He has covered the insurance industry for more than a decade, including stints at Retirement Advisor Magazine and ProducersWeb.
