Guide

Employee Benefits Strategists: What They Do

An employee benefits strategist looks at the whole program over several years: how it is funded, what drives cost and how benefits support hiring and retention. A renewal negotiator looks at one year.

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The Short Version

What to know.

A strategist starts with claims, utilization and workforce data, then sets a multi-year plan for funding, plan design, contributions and compliance. The goal is a plan that stays affordable and competitive, not a lower rate this year that returns higher next year.

When you hire one, ask how they use your data, how they measure results, who does the day-to-day work and how compliance is covered. At CFH a team of benefits professionals serves each account, so strategy and service sit together.

Keep Going

Where to look next.

Look Ahead

Plan benefits beyond this renewal.

Look at the Drivers

Find what is moving your cost.

Look Beyond the Rate

Judge a plan by more than the premium.

Going Deeper

What good strategy work looks like from the inside.

Strategy work is not a presentation once a year. It is a running record of what was decided, why and what was supposed to happen as a result. A useful sign is whether your advisor can show you last year’s recommendations and tell you which ones worked, which did not and what changed because of it.

Ask also how the work is divided. Strategy that depends on one person tends to stall when that person is busy. At CFH, a team of benefits professionals serves each account, which keeps the multi-year plan moving between renewals instead of waiting for the next one. Whoever you hire, ask to see an example of a plan they built for a group like yours.

Questions we get

Common questions on this topic.

Four questions to settle before you rely on it.

How is a strategist different from a broker?

A broker often focuses on placing and renewing coverage. A strategist plans funding, design and cost drivers across several years. Many firms, including CFH, do both.

What data does a strategist need?

Claims and utilization reports, the census, current plan documents and renewal history.

How often should we review our strategy?

At least annually, and again after a major change such as growth, a merger or a large claim.

Does strategy work help if our renewal is flat?

Yes. A flat renewal can still hide cost drivers that grow, and planning early gives you more options.

What should a multi-year benefits strategy include?

Typically it covers funding approach, plan design, contribution philosophy, compliance calendar and employee communication, with a target and a measure for each. It should be specific enough that you can tell a year from now whether it worked.

How do we know if our current advisor is doing strategy work?

Look for a written plan that extends past the next renewal, regular reporting on what is driving cost and recommendations that come with reasons. If every conversation starts and ends with the renewal rate, you are probably getting renewal service rather than strategy.

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General information, not legal or tax advice. Plan-specific questions belong with your counsel or CPA, and we will bring them in.

Sources

Where the Rules Come From.

The laws and rules named on this page link to the statute or regulation they come from. This is general information, not legal or tax advice, and rules change, so check the current text.

ERISA Overview (U.S. Department of Labor)

The DOL overview of rules for employer health plans.

Read the Text

Let’s Get to Work

Send us your renewal.

We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.

What to send

The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier

Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.

CFH Insurance Consultants

An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.

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Houston, TX 77084
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