Big Mistake Made By PE Firms: Allowing a Newly Acquired Portfolio Company to Drive a Broker Decision

Big Mistake Made By PE Firms: Allowing a Newly Acquired Portfolio Company to Drive a Broker Decision

I have been working with Private Equity (PE) firms on their insurance related needs for over a decade and continue to be amazed at the costly error that is repeated in the middle market sector.  The mistake is allowing a newly acquired portfolio company (portco) to retain their current Health and Welfare (H&W) broker based on a “relationship” vs skill sets.    In making this choice, opportunities to reduce the percentage of spend tied to human capital are often overlooked.

Association and Private Exchange Ratings and Contribution Strategies for the Small Group Market

Association and Private Exchange Ratings and Contribution Strategies for the Small Group Market

Dating back 25 years it was common for employers to pay a large portion of both the employee and dependent cost of employee health and dental insurance.  In many situations it was 100% of the cost for both employee and dependent.  Back then there was generally just one plan of benefits offered.  As HMO’s became more prominent it became more common to offer both HMO coverage and PPO coverage, many times through separate carriers.  Generally, employers charged employees more for HMO coverage so that they would not impair the claims experience for their experience rated PPO coverage. 

Health and Welfare: A Critical Component to Your Total Rewards Strategy

Health and Welfare: A Critical Component to Your Total Rewards Strategy

Let’s face it, when thinking about total rewards, base and incentive compensation is usually first on the list of priorities. Just as it should be. However, more and more progressive companies are seeing the benefits component of total rewards as a better differentiator in defining their employment value proposition. And, one allowing for many more design options than just compensation.

Compare Health Insurance Plans

Compare Health Insurance Plans

Here at Craford Benefits, one of the first objectives we are tasked with when working with a client is choosing the right plan type. Many factors are considered when determining this such as location, group size, financial budget, contributions, etc. We analyze all of these factors and then recommend a plan we believe best suits the client’s needs.