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Online Proposal |
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RFP Commentary There’s no doubt there are a number of agents who could do a fine job for Empire Airlines. You mentioned several of the firms you are reviewing, and I know they are all sound candidates. That being said, and all modesty aside, I firmly believe I distinguish myself from other candidates in the following areas:
Experience/Expertise
As outlined in the personal background section of this RFP, I believe my educational and multi-faceted insurance industry experience provide a solid base and advantage for me relative to other agents/consultants.
Creativity
A quality consultant needs to think “outside the box”. There is an art of blending conventionality with innovation, and I believe this is one of my strongest assets. The average consultant will help make your benefit plan function on a day-to-day basis. The quality consultant will truly make a difference in your benefit plan, actually effect outcomes, make a difference to the bottom line for the Employer. I believe I bring the experience and creativity to the table that can truly make a difference for Empire Airlines.
I have been asked by insurance companies to assist in the development of their insurance products. I have served on numerous advisory councils for insurance companies and employers. I also helped develop a complete employee benefits technology system that is now being used by many brokerage firms across the country, including several Marsh offices.
Most agents/consultants address what I call the “surface” issues – things like renewal communication, obtaining alternative quotes, resolving claim issues. Those are definitely issues that need to be taken care of. What most consultants don’t explore however, whether it’s due to lack of knowledge or simply not having the time to delve deeper, are issues such as reviewing provider fee schedules, looking at Pharmacy Benefit Manager’s (PBM) allowable pricing, dispensing fees, and administration fees, looking at corridor deductibles and alternative funding on reinsurance quotes – these are a sampling of “below the surface” issues that can truly impact the employer’s bottom line.
Over the past several years, a major topic of discussion has been on consumer driven health care plans – MERP’s, HRA’s, HSA’s, etc. Everyone is looking for that “silver bullet” to help control their health care costs. While I do believe these types of plans have merit in the right scenarios, I don’t believe they are the “end-all” that everyone is hoping for. I believe they are one possible component to a much larger benefit plan strategy. The consumer driven health care products focus primarily on the first several thousand dollars of health care expenses – again, definitely worth managing. Yet the bulk of an employer’s health care expenses come from claims that are much greater than $1,000 or $2,000. Over the last couple years I reviewed claim stratification reports for many of my clients, and supported this with other data sources, and we determined that our primary focus should not necessarily be on the small claims – we need to try to impact the $10,000 claim, or the $30,000 claim, before that claim turns into a $50,000 claim or a $100,000 claim. That is where the difference can be made.
In response to this, we have implemented predictive modeling for several of my clients. Predictive modeling involves in-depth analysis of claims data through a complex software system. Risk within the group is stratified and potential future high risk claimants are identified – before the large claims actually occur. Proactive case management is then implemented. There are a variety of ways to incorporate predictive modeling into your group. I believe that this can have much more of an impact on your plan than any type of consumer driven health care product by itself. I reference this simply as an example of a creative approach I have brought to my clients – when most agents are focused on consumer driven health care plans as a type of end-all, I am looking at those not as the end-all, rather as one component in a much broader strategy.
Work Ethic
In my opinion, hard work and dedication are the keys to success in any endeavor, especially in business. I take great pride in this area. I know I work harder for my clients than most others would.
Working at 10:00 PM at night or 3:00 AM in the morning is not uncommon for me. My family is the most important thing in my life, but they know and understand there are times when I need to work odd or long hours. I am extremely well organized, and I make sure that I do make time for my family, my work, and my personal time.
My phone system is set-up to where calls are forwarded to me regardless of where I am – Harris Dean office, home office, cell phone, etc. I also have immediate, wireless e-mail access. I always know when a phone call or an e-mail is coming in. I don’t believe in 24 hour response to phone calls and e-mails – I believe in immediate response. If I happen to be in a meeting or out of town, my response is usually within hours.
Business Model
In my first several years at Harris Dean, I managed about 50 group clients. I had a typical employee/employer relationship with Harris Dean, and I was paid a percentage of the commissions that those groups generated.
About a year and a half ago, I re-structured my personal business model. One of my goals was to reduce the number of clients I worked with, thereby allowing me to spend more quality time with the clients I retained. I also decided to focus primarily on large accounts.
Where I once had 50 employer clients, I now have 11. I am paid the full commissions on those 11 clients, instead of a portion of the 50 clients. I was able to structure my new arrangement with Harris Dean so financially it worked out neutral for me – yet I now work with substantially fewer clients on a much more dedicated basis.
I address this issue because I believe it is a critical distinguishing factor between me and other agents/consultants. Most employee benefit consultants manage at the “30,000 foot level.” The day-to-day operations and most of the renewal processes are handled by service representatives of the consultant. I definitely have service representatives assist me as well. However, I designed my entire business model around the fact that I wanted to focus on fewer clients on a more dedicated, personal basis. I take a “hands on” approach to every facet of my clients’ benefit plan.
In addition, most consultants are focused more on pursuing “new business” than they are with taking care of their existing clients. Obviously new business is necessary for any successful organization. But for me, pursuing new business is secondary to my existing clients. I only pursue new business when I am 100% comfortable that my existing clients are taken care of, and when I am 100% confident that I can provide the same dedicated effort to that new client.
Resources
I mentioned previously that I assisted in the development of an employee benefit technology system now being used by other brokerage firms across the country. That is just one of the resources I can also bring to the table for Empire Airlines. Through this company (IBN, in which I do have an ownership interest), I can provide for Empire Airlines a variety of resources – employee benefit communication websites, online HR services and resources, total compensation statements, consolidated billing services, HIPAA compliance resources, online COBRA, online Flex services, interactive Wellness programs, etc.
I have access to national data and actuarial studies from consulting firms such as Mercer. These studies provide tremendous national and regional normative data to assist in plan design and employee contribution strategies. If more complex actuarial work is needed, I have a relationship with an actuarial firm out of Portland, Oregon.
Many of these resources that I can offer are simply not available from most brokerage firms.
Local Service
I am local. I understand the unique issues regarding the North Idaho health care and health insurance arenas, much more so I believe than someone who does not reside or primarily work in North Idaho. Also, having an office within minutes of the Empire Airline’s office presents a definite service advantage over someone based in Boise, Seattle, or even Spokane.
Other RFP Questions
Two questions you posed in your RFP not addressed elsewhere in my response – any potential conflicts of interest, and the timetable for assuming responsibilities.
Regarding any potential conflict of interest, I would have no conflicts.
Regarding timetable for assuming responsibilities, I am available immediately to begin working on your account. As soon as notification is given, I would suggest setting a strategy and planning meeting with the Empire Airlines team and myself. I would then begin reviewing files, SPD’s and reports. I would also get in contact with the existing insurance companies to discuss any ongoing issues, and to begin preparations for the January 1, 2005 renewal. I like to begin the renewal processes early, probably sometime in mid-September. Other timetables would be set at the initial strategy and planning meeting.
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