Cost Cutters
David Contorno wants employers to imagine they are buying a car instead of buying health insurance for their workers. He describes it this way: “Imagine you go to buy a new car and your budget is $300 per month,” Contorno said. “But the salesman is so good that they wind up getting you into a $1,000-a-month car payment. And on top of that, you discover the car is really low quality. Do you think that switching your car insurance carrier would be a good strategy at that point? But what happens if you get yourself into a better car that costs less money to maintain? Don’t you then lower the cost of your car insurance, too?”
Contorno’s point is to look at the health part of health insurance.
“You can’t fix health care through insurance,” he said. “But you can fix insurance by fixing health care.”
Contorno is the founder of E Powered Benefits in Mooresville, N.C., and wants to help health insurance brokers save their employer clients money on health insurance by cutting the cost of their workers’ health care.