Validation Institute Sponsors BenefitsPRO Broker Expo 2024 (BPRO)

Key Takeaways:

  1. Validation Institute’s Guarantee Increase: The Validation Institute now offers a $100,000 guarantee to validate healthcare providers’ advertising claims, a significant increase from the previous $25,000 guarantee.
  2. Healthcare’s Economic Impact: Warren Buffett’s characterization of healthcare as the “tapeworm of the American economy” underscores the significant economic burden it poses. If healthcare inflation had aligned with regular inflation over the past two decades, the average American family could have had $8000 more in disposable income annually, totaling $180,000 over that period.
  3. Fiduciary Standards in Healthcare: The Department of Labor is applying fiduciary standards to the healthcare industry, similar to those governing 401K plans. This shift aims to improve transparency, reduce expenses, and ultimately benefit consumers. Brokers and advisors will be held to these standards, necessitating a comprehensive understanding of fiduciary responsibilities.
  4. Broker Training and Certification: The CHVP program offered by the Validation Institute equips brokers with the necessary knowledge to meet fiduciary standards and access leads from employers seeking brokers with such expertise.

 

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Transcript

Introduction

Great to join all of you here in in beautiful Denver.

It’s really a wonderful place to be and there’s a lot to do here.

The validation Institute validates the marketing claims of healthcare providers to see if they’re advertising claims can really stand up with data.

 

Importance of Validating Healthcare Claims

So we review the data and we will guarantee that they will meet those claims with $100,000 guarantee.

This is a new increase from our $25,000 guarantee.

And why is this important?

Warren Buffett called healthcare the tapeworm of the American economy.

That is not the compliment.

If healthcare inflation had tracked regular inflation over the last 20 years, the average American family would have $8000 more in disposable income per year, or $180,000 over that.

And the people in this room are in a position where you can fix that over time, and if you do it the right way, you can do well while you’re doing good.

 

Economic Impact of Healthcare

The Department of Labor is holding the healthcare industry to the same fiduciary standards as 401K plans, and in 2004, 401K plans had a expense charge of an average of 3 1/2%.

Inflation was a little over 2% and the earnings of the plans were maybe about 2%, so that each 401K plan was losing 2 to 4% a year.

And since the Department of Labor started enforcing those fiduciary standards, the expense charge has dropped from 3 1/2% to .2 percent.

And the same changes are going to occur in healthcare.

And you as brokers and advisors are going to be held to fiduciary standards.

And I’m just going to mention a few of those standards from the Department of Labor.

And but I want you to come by our booth 216 to get additional details.

 

Broker Training and Support

In addition to validating providers claims, we also have a broker training program, the CHVP program that can help you meet these fiduciary standards and also help you get leads from us when we are contacted by employers and they want a broker that really understands their fiduciary responsibilities.

Your name can be on that list as well, but the the Department of Labor web website says that it includes the duty to act prudently in one of the fiduciaries control of of the expenses.

A fiduciary who lacks that expertise will need to hire someone from with the professional knowledge to carry out those functions, and fiduciaries need to consider additional actions when selecting a service provider.

That means that you have to show your customer what they’re paying for various services and how to measure both the quality and the cost of that against alternative services.

So it sounds like a complex responsibility, and it is, but it’s something that you can that you can do.

 

Introducing Ken Jennings

And now it’s my privilege to introduce another star of the Jeopardy game.

Ken Jennings had a six month run as a contestant on Jeopardy and he won 75 consecutive times.

He did such a great job that they decided to make him head of Jeopardy and he has gone on to do that and to write many best selling books and I know you came here to see him.

So now I’d like to invite Ken Jennings to the stand.

Thank you so much.

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A red line drawing of an archery target with an arrow in the center bullseye, symbolizing precision, goal achievement, and success.

The move toward high-performance and high-value healthcare

Icon depicting customer support and care with a stylized human figure embraced by a hand, set against a segmented circular backdrop.

In-depth analysis of the latest trends and solutions that improve heath outcomes, strengthen accountability, and cut costs

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Actionable insights on how to drive better health outcomes at a far lower cost for your organization.

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Profiles in innovative solutions and organizations that are “walking the walk” when it comes to delivering better savings, outcomes, and more

Get ValidPoints

Sign up for ValidPoints, the complimentary monthly newsletter that offers the latest updates on:

A red line drawing of an archery target with an arrow in the center bullseye, symbolizing precision, goal achievement, and success.

The move toward high-performance and high-value healthcare

Icon depicting customer support and care with a stylized human figure embraced by a hand, set against a segmented circular backdrop.

In-depth analysis of the latest trends and solutions that improve heath outcomes, strengthen accountability, and cut costs

Icon of a seal with a checkmark, representing verified completion or approval, with a radiating effect, in red outline on a light background.

Actionable insights on how to drive better health outcomes at a far lower cost for your organization.

Icon of a badge with ribbons and a check mark, symbolizing achievement, accreditation, or quality assurance in a red outline.

Profiles in innovative solutions and organizations that are “walking the walk” when it comes to delivering better savings, outcomes, and more