ParetoHealth - 3x3x3 Challenge with Spencer Smith
ParetoHealth is the largest health benefits captive in the country, with over $1.3B in stop-loss premium under management.
Transcription:
What is ParetoHealth?
Well, Chris, the technical answer is that ParetoHealth is the largest employee benefits group captive in the United States. That's the technical answer. The real answer is that we are a community of like-minded employers who have all banded together in order to help reduce the volatility of being self-insured on their own, and also to gain access to really effective cost management tools that are typically reserved for the largest self-insured employers.
How is ParetoHealth different?
Well, I'm gonna go back to scale, number one. We are by far the largest benefits captive in the country. We have nearly a million belly buttons and almost 3000 employers under management. And so when you look at one of the basic reasons why an employer seeks out a captive, it is because they are seeking increased scale than they have on their own. The second thing is more about risk financing. We have the best default stop-loss contract on the market. We offer a no new laser and 30% rate cap for every single employer that joins our captive. And so you might be able to match those terms in a one-off example in the open stop-loss market, but we literally offer that to every single employer that joins the captive, and so nobody can come close to touching that. A last thing I would say is, it's a little less tangible, but we have this culture at Pareto that's difficult to describe until you've seen it firsthand. I have people ask me all the time like, "What's going on at Pareto? What's all this? Everybody's drinking the Kool-Aid." And they want to know exactly what's happening here. I think it is a spirit that has been fused originally with our co-founders and just been extended over the last decade where we have this contrarian mindset. We do not think status quo is sufficient for employers to manage their healthcare, and we want to be the antithesis to that status quo.
Who is a good fit for ParetoHealth?
Again, going back to a technical answer, between 50 to 750 lives is around our sweet spot, but both ends of that spectrum are malleable. But it's more about the mindset of the consultant who is looking to bring something differentiated to their employer, and then ultimately, is that employer interested in doing something different than they've always done? We think of this as, can you make one 10-year decision about your healthcare instead of ten one-year decisions where you're fixated on 12-month cycles and just kicking the can down the road? And so we're really looking for those employers almost that are a little bit pissed off. You know, that CEO or CFO that's slapped the table and said, "Damn it, there's gotta be a better way to manage our healthcare." Pareto is that better way in our minds.
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Transcription:
What is ParetoHealth?
Well, Chris, the technical answer is that ParetoHealth is the largest employee benefits group captive in the United States. That's the technical answer. The real answer is that we are a community of like-minded employers who have all banded together in order to help reduce the volatility of being self-insured on their own, and also to gain access to really effective cost management tools that are typically reserved for the largest self-insured employers.
How is ParetoHealth different?
Well, I'm gonna go back to scale, number one. We are by far the largest benefits captive in the country. We have nearly a million belly buttons and almost 3000 employers under management. And so when you look at one of the basic reasons why an employer seeks out a captive, it is because they are seeking increased scale than they have on their own. The second thing is more about risk financing. We have the best default stop-loss contract on the market. We offer a no new laser and 30% rate cap for every single employer that joins our captive. And so you might be able to match those terms in a one-off example in the open stop-loss market, but we literally offer that to every single employer that joins the captive, and so nobody can come close to touching that. A last thing I would say is, it's a little less tangible, but we have this culture at Pareto that's difficult to describe until you've seen it firsthand. I have people ask me all the time like, "What's going on at Pareto? What's all this? Everybody's drinking the Kool-Aid." And they want to know exactly what's happening here. I think it is a spirit that has been fused originally with our co-founders and just been extended over the last decade where we have this contrarian mindset. We do not think status quo is sufficient for employers to manage their healthcare, and we want to be the antithesis to that status quo.
Who is a good fit for ParetoHealth?
Again, going back to a technical answer, between 50 to 750 lives is around our sweet spot, but both ends of that spectrum are malleable. But it's more about the mindset of the consultant who is looking to bring something differentiated to their employer, and then ultimately, is that employer interested in doing something different than they've always done? We think of this as, can you make one 10-year decision about your healthcare instead of ten one-year decisions where you're fixated on 12-month cycles and just kicking the can down the road? And so we're really looking for those employers almost that are a little bit pissed off. You know, that CEO or CFO that's slapped the table and said, "Damn it, there's gotta be a better way to manage our healthcare." Pareto is that better way in our minds.
Click this link to subscribe to the BenefitsAlly Substack for FREE!
https://benefitsally.substack.com/