Putting a scheme into trust is a long-term decision and purchasers need to be sure they make the right choice. Rachel Riley highlights the assets of a good administration company
Providers and intermediaries may talk with confidence and certainty about the concept of the corporate healthcare trust (CHT), but for the purchasing team involved there is a complex web of doubts and uncertainties.
By their very nature, financial services are often complex and open to risk. Add into this the intangibility of services - purchasers are essentially buying a 'promise' - and the fact that they are organisational buyers - making a decision on behalf of their employees - and one can start to comprehend the complexities of the decision-making process.
So what should the purchasing team be looking for in an administration company? What information should the adviser provide?
Biggest is not always best. Looking in more detail at the administrator's reputation in the industry with the help of expert intermediaries is a vital element of the decision-making process. The target is a financially-sound company with a proven track record in claims cost management and outstanding levels of customer service.
Forming a relationship
From the moment the purchasing team is introduced to the administration company - be it the website, a tender document, an introductory email or a 'beauty parade' - there must be absolute belief that what is being communicated is accurate and reflects the service provided. A site visit is important. Being able to meet the people who do the work, seeing how the process operates and asking all of the difficult questions is vital to provide affirmation of the decision being made.
This works both ways. The administration company must glean a reasonable understanding of the scheme to be satisfied it can administer it to the specific requirements. Critical to this is establishing exactly why the healthcare scheme is being provided in the first place. From here stems all decisions on communication, claims cost management procedures, service functionality and so on.
There are many stories of insurance and administration companies with claims denial departments but, in reality applying the various rules of a scheme will benefit from a liberal helping of common sense. There will always be grey areas and individual circumstances that do not fit in with the 'norm'. Having an administration company that is savvy enough to identify such cases, along with the breadth and depth of specialist knowledge to investigate further and the flexibility and adaptability to be able to apply the trustees' decision sensitively is essential.
Long-term decisions
While in the consumer goods market it may be possible to switch providers regularly with little detriment, in the CHT market this will result in nothing more than dissatisfied members and disillusioned group coordinators. A trust offers the ultimate in flexibility so, having carefully chosen, there should be no reason for the scheme to move. With this in mind, it is important to develop good working relationships - particularly with the account management team.
Understanding why the benefit is being provided is the first step on the road to ensure the scheme is fit for purpose. However, companies change in this dynamic world, cultures adapt and medical advances and innovations are made which mean that what works one day does not necessarily work on the next. Having confidence that the administrator is continually improving its service proposition is important. Knowing that these enhancements are being applied within the context of the specific scheme requirements is vital.
The administration company should also encourage feedback, positive and negative, from members of the scheme. This is not only to evaluate whether their service standards are exceeding requirements but, perhaps more importantly, to assist the purchasing team to reassess the demands and concerns of their employees in relation to private healthcare. This data should be assimilated and interpreted by the administrator. It is this knowledge that should then be applied to the scheme's set up, from minor tweaks to communication to major benefit changes.
So, what is the common denominator for all of these requirements? Quite simply, it is trust:
- Trust in the organisation's reputation, track record, image and reputation
- Trust in the culture of transparency
- Trust in the application of common sense and 'treating customers as we would hope to be treated ourselves'
- Trust in the sales team, the account management, the customer service staff and the systems within which they operate
- Trust in the commitment and investment made by the administrator to continually strive to develop and enhance their service proposition
- Trust in the ability to objectively stand back and evaluate the service provided
Trust can be defined as the belief in the trustworthiness and integrity of the exchange partner. This is the starting point of purchasing decisions, rather than, as is so often the case, something that is merely paid lip service to within a procurement scoring matrix.
Rachel Riley is director of business development at WPA Protocol.
