Benefits Think

3 fixes to eliminate health plan waste and boost ROI

Woman sitting at table, talking to man in office
Adobe Stock

Healthcare costs are surging, and your clients are feeling the pressure. Employers are bracing for a 9% increase this year – the sharpest rise in a decade. GLP-1s and specialty drugs are driving pharmacy spend through the roof. Chronic conditions are projected to cost U.S. businesses $2 trillion in medical expenses and $794 billion in lost productivity by 2030.

Meanwhile, HR and benefits leaders are buried under a bloated stack of point solutions – juggling vendors, justifying costs and trying to prove return on investment (ROI) in a system that's anything but streamlined.

As a benefits consultant, this is your moment to lead.

Your clients are under pressure from every angle: rising costs, limited resources and disconnected systems. They're swimming in reports — often hundreds of pages about their health plans — but where's the insight? Where's the action to mitigate the trend?

Right now, 86% of large employers are using 12 or more-point solutions to manage care, pharmacy, well-being and more. Instead of bringing clarity, the ecosystem has become fragmented, expensive and hard to manage. So, it may not be surprising that Mercer estimates 53% of employers plan to consolidate or eliminate platforms this year.

This is where you come in. With sharper tools and fiduciary-level oversight, you can cut through the noise and deliver real savings.

Read more:  Looking to spruce up your wellness benefits? It may be time to include gardening

Here are three fixes that help you do just that:

Fix No. 1: Expose hidden waste
Health plans leak money. Quietly. Consistently.

Even in well-managed plans, gaps in data, misaligned incentives and vendor errors lead to major waste. With more than 20 vendors touching claims, performance and payments, there are endless ways things go wrong – without a single source of truth to catch it.

That's why smart reconciliation and oversight aren't optional anymore.

Our company has identified leakages across dozens of employer plans, including $1.5 million in stop-loss underpayments from incomplete carrier reporting; $800,000 in misapplied access fees; $100,000 in lost pharmacy benefit management rebates due to weak contract enforcement; $180,000 in ASP reconciliation issues; and $210,000 stop-loss denial from mismatched Social Security numbers.

These aren't one-offs – they're common symptoms of a broken system. When no one's watching the full picture, money bleeds out.

As a consultant, surfacing and stopping this waste is one of the clearest, fastest ways to show value – and protect your clients from avoidable cuts.

Read more:  Don't let PTO go to waste: An AI-powered approach to cashing out time

Fix No. 2: Simplify the vendor stack 
Your clients don't need another point solution. They need clarity and results.

The current model – adding tools to solve every new issue – has hit a wall. It's expensive, disconnected and tough to manage. Worse, most vendors report on their own performance, using selective or incomplete data.

Consolidation is coming. But the real challenge is knowing what's working and what's not.

We give consultants and benefits teams a centralized view of the full health plan ecosystem. That means you can evaluate vendors, track ROI and make smarter, fact-based decisions. In this environment, having that level of control isn't just nice – it's essential.

Read more:  Monitoring employee productivity with AI? Better benefits can restore trust

Fix No. 3: Automate what slows you down
Manual reports. Data pulls. Spreadsheets.

They're too slow for today's health plan demands. By the time a spreadsheet surfaces an issue, the damage is already done. Automation is the only way to keep up – and stay ahead.

We integrate directly with major vendors and platforms, automating claims and payment reconciliation; outlier detection and fee validation, vendor performance tracking; and real-time reporting dashboards. This frees you to focus on strategy – and gives you visibility to spot issues early, before they turn into financial black holes.

Clients don't need passive support – they need strategic guidance backed by fiduciary-level insight. That means spotting inefficiencies, measuring impact and holding vendors accountable.

The consultants who lean into this role – armed with the right data and tools – are the ones who stand out.

Costs are rising. Vendor stacks are bloated. The pressure to consolidate is only growing. But that's exactly where your opportunity lies. Consultants who help clients eliminate waste, simplify their vendor ecosystems and make data-driven decisions aren't just solving problems – they're building trust.

You don't need more point solutions. You need one that works.

For reprint and licensing requests for this article, click here.
Employee benefits Healthcare
MORE FROM EMPLOYEE BENEFIT NEWS