What Does Disruption Look Like in Employer Health Insurance? A Call to Arms (w/David Contorno, CEO E Powered Benefits)

Meet David Contorno, CEO E Powered Benefits, giving employers navigable, understandable, and affordable health plans. E Powered Benefits was born out of the continuous cost increases and a lack of transparency within their existing health plans, and gives employers a real alternative to the traditional broker-carrier model that costs too much and pays too little.

 

David's passion for changing this problem stems from 30 years of experience of client renewals, which showed him that the annual 'bad news meeting' and sense of dread when meeting employees and explaining cost increases to employees had to be fixed.

 

David says the reason is that health insurance was created to prevent humans from catastrophic loss, so wonders how why it does not protect people from bankruptcy when they face high medical bills. David's realization that broker commissions and carriers claims payments increase as the total premiums written and claims paid increase was a game changer that directly led to creating this business.  

 

David explains that since 60% of Americans get their health insurance through their employers, the financial incentives to reduce benefits and increases costs and claims lead to worse outcomes and dissatisfaction every year for insured members. David likens the big publicly traded insurance carriers to the "house" in gambling, as long as members are playing in the house the rules are such that the house always wins.

 

David talks through how he went about launching the business, by studying the total healthcare costs and money outflows to build customized health plans that cost up to 65% less than traditional employer health plans. E Powered Benefits pays faster and more on claims, in particular saving money on pharmacy benefits and hospital claims, and explains why he is able to do that. Forbes has named David "One Of America's Most Innovative Benefits Leaders" for his advocacy of transparency in health plans.

 

Follow the Insurtech Leadership Podcast airing weekly hosted by Joshua R. Hollander. We give you up-close access and personal insights from the leaders of the fastest-growing #insurtechs and most innovative #insurance carriers and brokers.