Tag Archives: Benefits

Avoid these common mistakes!

I don’t know about you but I find that the changes in healthcare benefits are murky and confusing at best.  Pat Patrick_ChestnutChestnut, AAOA Healthcare, provided a candid peek under the tent of what is going on with the politically charged Affordable Care Act.

One of the valuable nuggets Pat shared at the CEOtoCEO Breakfast is identifying the most common mistakes business owners make when buying insurance

  1. Not being involved in the benefit decision – Delegating all decision making authority to an HR department.  “The one and only thing you can’t delegate is your responsibility to make the best decisions.”
  2. Reactive vs Proactive – Shopping every year and changing carriers rather than building a benefit strategy.  “Do you buy a new car every year?  Why would you need to buy a new policy every year?”
  3. Spending vs Investing – Viewing benefits as an expense rather than an investment and treating it as one.  “Healthcare benefits have become a major employee attraction and retention tool.”

Three Important Questions….

At the beginning of the November CEOtoCEO Breakfast Pat Chestnut, CEO of AAOA Healthcare, posed three feedbackquestions to the 59 CEO’s and Business Owners in attendance.  The questions and highest rated responses (in red) are as follows:

1.  Why do you provide benefits?

a) Because I should.

b) My competitor’s do.

c) To attract and retain employees.

d) My wife told me I had to.

2.  What is your strategy to address healthcare reform?

a) Buy whatever has the lowest cost.

b) Shop every year.

c) Change carriers to lower cost.

d) Hope healthcare reform goes away.

e) Rely on my broker to tell me what to do.

3.  How are you budgeting for the increasing cost of healthcare?

a) Find the best plan I can afford each year.

b) Splitting the increasing costs with employees.

c) Reducing employers contributions for employees and dependents.

d) Sending employees to the government exchange.

e) Not providing benefits.

How would your answers compare and contrast with your peers?