Insurer says employers need to be more savvy about choices

By Clyde Noel, Town Crier Staff Writer

The number one insurance-related concern expressed by employers today is how to contend with the accelerating cost of benefits. It’s a hot button and a key area of anxiety with businesses.

Premier Insurance Services is a new business on the block. It’s a first-time venture of Los Altos Rotary Club member Brenda Niedert, who said she has a lot of experience in the field. Health care is expensive and employers need to be more savvy, she said.

“I have spent many years researching the industry and decided to go on my own,” Niedert said at last week’s Los Altos Rotary Club meeting, where members were receiving flu shots. “It’s been a dream of mine for the last three years and I’m sure I can help businesses save money with research and service.”

California employers who want to offer group health insurance, health maintenance coverage or group life insurance must comply with a number of state statutes and regulations. Niedert has been working and researching the field for years.

Niedert said employers should take a greater interest in what is available to them and their employees. The area is a complex thicket of regulations because the employer’s plans are covered by both California and ERISA (Employee Retirement Income Security Act). The two sources of law can overlap and even contradict each other, although in many cases the Federal law pre-empts state regulations.

“The high cost of prescription drugs, the possibility of universal health insurance (Gov. Davis just signed SB2) is not a healthy sign for employers,” Niedert said. “Employers will be forced to pay for a portion of the costs of universal health insurance with new plans. Free health care will come at a cost to someone, and probably most of the cost will be forced on business.”

Niedert has experience in all phases of the employee’s benefits area, which includes wholesale insurance distribution channels, brokerage companies and HMOs like Blue Cross and Kaiser Permanente.

“There are literally hundred of different insurance plans available on the market today and my job is to find the plan that best meets a client’s benefits and financial needs,” said Niedert. “Many factors determine rates that are available to employers.”

In a recent survey of human resources professionals, they overwhelmingly ranked the quality of services received from insurance carriers as the second highest concern behind the escalating cost of benefit plans. Nearly half of those surveyed had changed carriers during the past two years based on price and service concerns.

“Every year insurance companies change plans by adding to or from what is offered. My job is to research those new plans and determine if they are advantageous to my clients,” Niedert said. “It is my responsibility to be knowledgeable with existing and pending local, state and federal legislation issues and how they can impact a health plan.”

Niedert said that employee benefits should not be a battle between the employee and the employer. “It’s the sign of the times and both need to be more aware and educated on the issue of benefits.”

For information logon to or call (408) 395-0439.