SelectQuote, a national Term Life Insurance Agency has issued a FAQ for professionals that are responsible for their company’s benefits and wellness program. With 45% of all employers implementing an insurance exchange solution, or planning to do so before 2018, SelectQuot argues that employers should take the Private Exchange Evaluation Collaborative research findings as a cue to conduct a request for proposal (RFP) to find the right insurance exchange provider to meet their business needs. SelectQuote Benefit Solutions Vice President of New Business Development Katy Jennings debunks three myths around conducting an RFP and explains how the process may actually result in big benefits for organizations.
Myth 1: You don’t need to look outside your consulting firms for an RFP process because you plan to use their internal insurance exchange offerings.
In general, the convenience of bundling your services does not outweigh the benefits an expert provider can offer you. You may work with one consulting firm to provide benefit advisory services and vendor selection, however when the consultant owns an exchange solution, you may be missing options with companies that specialize in building and operating exchanges. SelectQuote Benefit Solutions exclusively operates exchanges so you can compare the differences in price, choice, level of service and customer support that each provider offers. “Companies like SelectQuote have decades – not months – of experience in operating exchanges, and are able to provide year-round support – not just one-time, or seasonal assistance to your employees and retirees,” said Jennings. Use RFPs as an opportunity to fulfill your fiduciary responsibility, and to find the exchange solution that will give you the best overall experience and value for your HR team and employees/retirees as well.
Myth 2: Your existing exchange provider is “good enough” so it’s not worth looking at other options.
You owe it to your organization – your HR staff, your employees, and your bottom line – to evaluate your existing solution on a regular basis to ensure it is still the best fit to meet all of your business needs. To remain competitive in benefit offerings, businesses seek innovative, low-cost ways to enhance benefit packages. “Exchange providers like SelectQuote Benefit Solutions offer customers – your employees and retirees – a yearly check up to ensure their existing plan is still the best choice for their lifestyle needs,” said Jennings. “Implement the same practice for your organization and conduct regular reviews to evaluate business needs, including your satisfaction with current service and plan offerings.”
Myth 3: RFPs are time-consuming and will not yield a high return-on-investment
By conducting an RFP beyond your consultant’s driven solution, you may find a more comprehensive, more efficient and more fitting exchange solution for your organization. When you narrow your candidates to a targeted group of reputable, experienced solution providers, you can minimize your time commitment. “Once you have evaluated your options, you have a good chance to find a solution that will save you money, improve employee/retiree satisfaction and allow you to provide more customized options for your workforce and retiree population,” said Jennings.