NAW Partners with Gallagher to Help Us Control Health Care Costs
Chairman's Column - August 2014
Dan M. Blaylock
NAW 2014 Chairman of the Board
President, Adams-Burch, Inc.
If there is one area I hear fellow wholesaler-distributors continually express concern about, it’s the ever-increasing cost of health care and employee benefits. That, coupled with the burdens and uncertainty placed on our industry by the Affordable Care Act, have hampered our businesses and made more than a few companies think twice about growing their number of employees.
This overriding concern about spiraling health care costs is also a huge concern for wholesaler-distributors that are trying to get a handle on predicting the cost of employee benefits, while still providing the best benefits possible for their employees and their families.
Many of you have asked the NAW team to put something together that would help you better control your health care benefits costs. For years, NAW hasn’t been able to find a real solution.
On July 1, 2014, NAW and Arthur J. Gallagher & Co. launched a new partnership to bring innovative employee benefit, and property and casualty solutions to firms in the wholesale distribution industry.
Developed over 18 months, the program will offer wholesaler-distributors a private health care exchange and benefit management platform that includes products designed exclusively for the wholesale distribution industry. Using this program, companies will now be able to provide their employees with benefit options that best suit their individual needs, while better managing the costs associated with providing these benefits.
In addition, by leveraging the power of Gallagher, the NAW Program will bring property and casualty options to mid-market firms, which make up the vast majority of the nation’s 35,000 wholesaler-distributors. These coverage options typically are only available to large companies.
NAW chose to partner with Gallagher after an exhaustive process of discussions across the insurance community, because Gallagher clearly has superior solutions for our industry needs. These solutions will enable our industry to have long-term certainty when it comes to health care coverage.
The Gallagher team is totally committed to this relationship with NAW, because it is a perfect application of their “Business without Barriers” approach to the insurance needs of businesses. It’s also a huge opportunity for Gallagher because of NAW’s known leadership in the wholesale distribution industry.
The new private health care exchange will be introduced in phases starting with a pilot in the states of Delaware, New Jersey, and Pennsylvania before being rolled out nationally. A pilot launch of the property and casualty offering for small to mid-size distributors will also occur, preparatory to a nationwide launch.
NAW is laser-focused on producing truly innovative options for our members and the industry at large. We believe that Gallagher has already developed superior approaches for them. These pilots will enable us to further add value as we receive feedback.
Given the confusion that has ruled the health care / employee benefits space for years, I’m particularly excited to be able to share this announcement with you. This breakthrough solution for NAW members and the industry will set the standard for a new model of providing the best for our employees as well as our companies.
Interest in the new program is already high and we expect that many firms will take advantage of the program in the coming months.
If you’re interested in learning more, please click here.