Self-Funded With Spencer A Renaissance in Employee Benefits with Chris Hamilton
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Jan 4, 2023 Chris Hamilton, a Partner at Hotchkiss Insurance, breaks down the evolving landscape of employee benefits. With a finance background, he reveals why many employers feel trapped by soaring healthcare costs. Discover how self-funding can empower businesses and why brokers should shift to performance-based compensation. Chris shares personal motivations stemming from his brother's medical struggles and explains the critical role of data in identifying cost drivers. The conversation highlights the renaissance in benefits, focusing on innovative solutions like concierge medicine and the impact of HSAs on middle-income employees.
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Market Structure Drives Excess Costs
- Chris saw health insurance as inefficient due to consolidation and vertical integration that reduce competition.
- He concluded this lack of competition causes employers and employees to pay more than necessary.
Turning Point With A Single Mom
- A single mom told Chris Hamilton she couldn't afford a $6,000 HSA plan while her child needed an ear procedure.
- That moment made Chris refuse premium-based commissions and switch clients to fee-based compensation to align incentives.
Compensate Brokers For Performance
- Tie broker compensation to measurable performance like a percentage of verified savings with reasonable caps.
- Focus fee models on specific unit-cost outcomes (e.g., specialty drugs, infusions, births) rather than uncontrollable events.