Employee Benefits Purchasing Coalitions
Leverage buying power to lower your total cost of benefits.
The Bottom Line, first
We are truly changing the way the middle market buys insurance.
At Cogent Advisors, we are Driven Together℠ to improve our clients’ current & future Enterprise Value. One of the economic engines to achieve this is through access to proprietary healthcare purchasing coalitions.
- There are currently 215 organizations totaling 40,000+ employees that are part of this program
- Those organizations have experienced a 26% annual dividend (6-year average)
- Have only incurred a 2.5% annual premium increase (6-year average)
- Plus, a majority of them see a 10 – 15% reduction in healthcare spend right away.
What is a Healthcare Purchasing Coalition?
A small to mid-sized company has insurance risks that are far less predictable than those of larger companies. On top of that, the traditional insurance model typically favors the carriers and the agents, not the insureds.
Through our partnerships, our clients have access to an exclusive group who has been pioneering healthcare purchasing coalitions nationwide since 2009. This is not simply updating plan designs, or large deductibles, or manipulating funding mechanisms, we truly have a better way for our clients to purchase healthcare – without disrupting coverages, in-network Doctors or providers, or stripping out the benefits employees really care about.
Our purchasing coalitions are designed to enable companies to come together, using their collective size, to buy health insurance replicating the predictability and bulk buying power of the largest of companies (i.e. Fortune 500 Companies).
This diversification mitigates risk to each individual company, as shown in the chart below.*
- A company of 50 employees has a 1 in 5 chance of having a bad claims year (20%).
- A company (or captive) with as few as 400 employees has a 1 in 20 chance of having a bad claims year (4%).
- Our coalitions have, on average, 5,000-10,000 employees from multiple employers
Can every Cogent client participate in a Coalition?
No.
Companies must meet certain criteria to be eligible for coalition participation. Some factors include:
- Employee participation size
- Annual healthcare premium
- Physical health of the employee population
- The financial health of the organization
- Claims history
- Loss ratio
- Cultural fit
Can I join a Coalition on my own?
Unfortunately, no. These are proprietary programs and are exclusively offered to Cogent clients and partner agency clients. Companies can not purchase these “off the street” or just go online and join. This isn’t Geico!
How do I know if a Coalition makes sense for my company?
The best way to determine if you qualify or if a Coalition makes viable sense for your organization is to schedule a discovery call or meeting with us.
If we discover you have the characteristics to be considered for a Coalition, then we can proceed with our process. Our D-D-I-M process will take you through our process to discover your needs, design a plan and present you with a recommendation to/or not to participate in a Coalition with us.
Contact us to discuss your options
What if I don’t qualify or if it doesn’t make sense for us right now?
That’s ok! As mentioned, not every Cogent client fits the coalition’s model. We do offer some great fully insured employee benefits options. So, whether you are a fully insured or self-insured (Coalition) client, you can still get access to our team, our process, and service model.
No matter the path you go down (fully or self-insured) Cogent can be there with you to ensure you are managing your total cost of benefits and offering a great program for your clients.
*Provided, with permission, by Axial Benefits Group
Contact us to schedule a discovery call
Contact us to see how Cogent Advisors can partner with you to significantly improve your Enterprise Value.
