Employee Benefits 101

Acquisitions Within the Health Care Supply Chain

Last month, Employee Benefits 101 reviewed the medical loss ratio, or MLR, which essentially regulates insurance carriers’ profit margin on their fully insured business. As a follow up, Bob Gearhart Jr. is taking a look at acquisitions within the health care supply chain and how they allow insurance carriers to increase their profitability while still meeting their obligations under the MLR.

When fully insured premiums increase, the amount retained by an insurer also increases. But if an insurer actually owns a pharmacy benefit manager (PBM), or any other part of the health care supply chain, not only do they keep their 15% margin under the MLR, but can generate additional profits from claims dollars they are paying out on the business owner’s behalf.

What does this mean for your business expenses? Watch the video for insight from Gearhart and be sure to check out more of his Employee Benefits videos.

Bob Gearhart Jr. is sharing his nationally recognized expertise with The Business Journal’s digital and social media audiences through this video series, “Employee Benefits 101.”

Gearhart Jr. is one of the co-authors of Breaking Through the Status Quo, a book discussing health-care and employee benefits. The book recently reached No. 22 among all nonfiction books on Amazon’s Kindle Store, as well as No. 1 on the Insurance, Business, and Health categories.

As the third generation at DCW Group in Boardman, Gearhart Jr. says his role is to merge two generations of industry experience that spans over 60 years with new ideas and innovative technology to help the firm’s customers become “lean, mean, job creating machines. The best part of my job is learning about our clients businesses and meeting their employees.”

When Bob Gearhart Jr. was 10 years old, his first job was with the family company, DCW Group in Boardman, keying census data into Microsoft Excel from paper forms in his grandparents’ living room.

In 2007, he was a junior at Bowling Green State University majoring in sports management when his grandfather passed away and he obtained his insurance license. “Although I had my insurance license, it wasn’t until 2010, after graduating from Bowling Green and spending two years with the Cleveland Cavaliers and Lake Erie Monsters, that I decided to return to our company,” he says.

DCW Group is a third generation employee benefits and business consulting firm in Boardman, 4800 Market St. D, that describes itself as “committed to the continued disruption of an industry that rewards mediocrity and lacks transparency.”

The DCW team is passionate about working with companies and their employees to provide a steady hand in a turbulent world as health care undergoes continued reform. DCW wants to debunk the belief that all health insurance brokers are lazy and lining their pockets, by putting their best foot forward every day and investing in technology solutions to pass on to the companies they work with.

The firm offers traditional and non-traditional insurance, working with dozens of insurance carriers to make sure their clients save money as a company and their employees have solid benefits they can easily manage with DCW’s Employee Management System.

Have employee benefits questions? Email Bob Gearhart Jr. at BobJr@dcwgrp.com.

Published by The Business Journal, Youngstown, Ohio.