MILL BAY – Tyler Hoffmandirector of OnPoint Benefits Inc.estimates it can save business owners up to 18% on their benefits programs.
How? ‘Or’ What? It starts with an assessment of their clients’ current plan. OnPoint has discovered something they call “wasting,” which drives up the cost of these plans.
“The waste can start as soon as the plan is conceived,” observes Hoffman. “If everyone has the same coverage, this waste that no one wants has a chance to arise. So, first, we design benefits plans aligned with their needs – demographics, competitiveness, employee health, etc. – so that the plan is part of a strategy, as opposed to a product to be consumed or not by the staff.
For example, a construction company that needs to keep its carpenters healthy will have a different blueprint design than an office full of engineers.
“Yet, so many times, counselors come up with the same plan designs that come to nothing,” he notes. “We operate software to compare plans to see how they compare to industry peers in the region and track performance of claims and premiums that are paid. We take on a lot of the risk on benefit plans because we tend not to move customers between carriers, if at all.
Hoffman notes that wastage of employee benefit premiums occurs as plans move away from claims being created.
“This discrepancy is a pure profit for the insurance companies, and it has an impact on the majority of group insurance programs in Canada,” he explains. “This overspending is the result of advisors and brokers not monitoring plans consistently enough or designing the plan correctly in the first place. Often, an advisor’s business portfolio becomes too large to handle.
Hoffman sees productivity as a pillar of service provided by OnPoint.
“The most overlooked expense in benefits programs is the time and money it takes to administer them,” he says. “All of our customer services are paperless and we never use the carriers digital onboarding tool. Instead, we provide our customers with a proprietary benefits administration portal that can sync with systems This completely eliminates mundane data entry and repetitive tasks, and typically 18% is a running saving that is achieved.
Looking ahead, Hoffman says demand for mental health wellness is growing after two years of Covid restrictions and the resulting isolation.
“We get a lot of calls about EAP programs, counseling and virtual health,” he says. “I encourage organizations to look at what they need for their mental wellness support and focus on need first. Then find a program that fits their budget.