Construction Today - January 2017 - 71
IN THIS SECTION
The Ryan Co. Inc.
ing your employees' disposable income dilemma. You can begin
by reviewing historical trends of employee benefits costs, as well
as assessing employee salary adjustment trends.
2. Look at the current management techniques being deployed to
control your plans. How much of your strategy is cost-shifting
vs. cost savings? Are there opportunities to reduce cost and share
those savings with employees? Begin by evaluating vendor relationships and associated arrangements vs. results. Are you really
getting what you pay for? As a fiduciary of your medical plan,
your responsibility is to evaluate all service provider contracts
and determine where there may be opportunities to save money
and increase value. Assign your best managers to the benefits
team and question everything. Analyze all existing programs,
vendor relationships and contracts. Ask for detailed reporting in
order to understand pricing, fee structures and utilization.
3. Recognize the barriers your team has created regarding possible available options and modifications. When you hear "we
couldn't possibly do that," be sure to take the "yes, if" instead of
the "no, because" approach to plan management. Promote and
allow your benefits team to take risks. Don't expect perfection,
but demand progress.
4. Stop depending on organizations and vendors that are profiting
from a broken system and process.
5. Instead of working in a silo, bring management of benefits into
the mainstream of business priorities. What else do you spend
this kind of money on? Reveal the mystery of employee health
benefits and manage these costs with the type of scrutiny used in
other key areas of your business.
The Ryan Co. excels in
projects that involve the
State Utility Contactors
specializes in large heavy
civil construction work.
The Ryan Co. Inc.
GAC Contractors Inc.
State Utility Contractors
Balfour Beatty Infrastructure Inc.
appreciate increased wages you will be
able to provide.
* Your business will have more resources.
* Your plan can achieve a meaningful
decrease in cost.
Embrace change, get involved and shake things up. You can make a
difference. It all starts with the key internal changes described above.
The crucial point is to appreciate the true impact that healthcare costs
are having on your employees and organization. A new paradigm is
necessary to embrace solutions that are, in fact, quite different from
today's traditional approaches.
Your next step is to focus on the acquisition of healthcare and
health plan services in the same manner used for traditional
economic products and services. Begin with critically exploring
non-traditional market solutions with a focus on high-quality, lowcost service providers. This subject is a key topic for your success
and involves a lot more information than what can be contained in
If you take these steps, you can expect that:
* You will gain control of a system in chaos.
* Your employees will have a better opportunity to experience and
The solution is to improve cost and quality
of services delivered with aggressive management. There are many levers that can be
adjusted in order to produce a positive effect
and while it may seem daunting, it truly is
possible to drive change. There are resources
available to help you navigate this landscape,
including organizations not entrenched
and highly conflicted by the massive profits
generated from today's system.
Eric Krieg is the president of Risk International Benefits Advisors, which specializes in helping companies optimize their employee benefits plans to reduce
overall costs for the company and their employees. For more information, visit
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