Employers are starting to expect more out of their healthcare vendors, whether they’re insurance carriers, third party administrators, pharmacy benefit managers, consultants or point solutions. This is especially true because employers have a fiduciary responsibility to get the best benefits for the best price for their employees.
During a recent panel discussion at the Midwest Business Group on Health conference in Chicago, a group of employer leaders shared the advice they’d give vendor partners on how they can build trust with employers.
One panelist said it’s important for vendors to be upfront and honest if something goes wrong.
“If something happens — and stuff is going to happen — just tell me,” said Carole Mendoza, former VP of benefits at Voya Financial. “I don’t want to hear about it from an employee. I don’t want to hear about it from the C-Suite, certainly. So if something has gone wrong, tell me, and then tell me how you’re going to fix it. Or let me help you think about how we can fix it because the worst thing you can do is have something blow up, try to brush it under the rug, and I find out about it from somebody else.”
Another panelist echoed Mendoza’s comments.
“The vendor has to really listen to you to understand what your needs are,” said Sherri Samuels-Furest, VP advisor of Sargento Cheese. “And then, be honest. If they can’t do something, don’t sell you a bill of goods. Be honest that they can’t, and meet you halfway, or try to figure out a way around what it is that you’re asking for that they can’t do.”
Jason Duhon, director of total rewards and HR at construction company Caterpillar, said understanding the vendor’s incentives is important. For example, the company was looking for a navigation service and asked a question in the request for proposal that said, “Do you have contractual restrictions that don’t allow you to talk about cost and quality for some of the healthcare systems or hospitals or clinics?”
Duhon said the answer was “yes” for about eight out of the 10 vendors it asked this question to.
“I’m trying to get our people to go to the best hospitals with cost and quality in mind, and you’re telling me as a navigator that you have contractual restrictions that don’t allow you to be honest about that,” he said. “I can’t go into that relationship.”
Duhon also shared recommendations for how employers can use their data to fulfill their fiduciary responsibilities, including comparing the employer’s pricing to benchmark data.
“I think you have to feel confident that the prices that you’re offering for your employees are competitive in the marketplace, and that you’ve done everything that you can to get the best quality at the best cost for them,” he said.
Photo: zhaojiankang, Getty Images
