When our daughter started saving for her first car, she figured she needed $5,000. To a teenager, that feels impossible. But she started small, putting away what she could, little by little. Over time, those savings are adding up — and what once seemed overwhelming became achievable.
That’s the power of compound interest: small, consistent actions creating big results over time.
Managing a company’s health plan works the same way.
Why Small Wins Matter
Every CFO and HR leader knows the frustration of facing another 5–10% renewal increase. Doing nothing just compounds the problem in the wrong direction.
But there is another path. The first step is going self-funded if you’re not already—then start building from there.You can start with small, meaningful steps that add up:
- Independent TPA – Unlike carrier-owned TPAs, an independent TPAs work for you, not the carrier. They provide greater access to claims data, give you more flexibility to build the plan you want, and help identify where dollars are being wasted.
- Transparent PBM – The big three PBMs profit from hidden rebates, spread pricing, and formularies that serve their bottom line. A transparent PBM removes the games, passes rebates directly back to the plan, and ensures you’re paying the true net cost of prescriptions.
- Direct Primary Care & Preventive Care – By giving employees easy access to a trusted doctor, you reduce ER visits, catch conditions earlier, and improve preventive screenings. It’s a relatively small investment that drives significant long-term savings.
- High-Value Care & Consumer Education – Teaching employees how to be better healthcare consumers — and steering them toward higher-quality providers — improves outcomes while lowering costs.
- Finding Waste – Many plans pay for low-value care, overpriced drugs, or duplicate services without realizing it. Each year, target one area of waste and replace it with a smarter, higher-value alternative.
- Captive Stop-Loss (advanced strategy) – For CFOs especially, captives can create even more transparency by pooling risk and data with like-minded companies. By joining together, employers gain stability from a larger risk pool and the opportunity to share in ownership upside. In good years, captives can return unused premiums as dividends
These changes aren’t just empowering—they’re energizing. The savings and improvements compound year after year, creating meaningful results and building momentum that makes each next step easier and more rewarding.
The Five-Year Effect
There’s a quote I’ve always appreciated: “We overestimate what we can do in one year, but underestimate what we can do in five.”
That’s true in personal financial planning, and it’s true for self-funded health plans. Trying to “fix” everything in one year isn’t realistic. But a steady, deliberate approach can completely change the trajectory of costs — and the quality of care — over five years.
And it’s not just about numbers. The reason for all of this is simple: providing better benefits means protecting employees and their families. That’s how you build a stronger, happier, more resilient workforce.
Pushing Through Resistance
When I was in Navy boot camp, my brother sent me a letter with a line I’ll never forget: “Anything worth doing is not easy, or even hard.”
That applies here too. The healthcare system is designed with resistance to change. It can feel easier to accept the status quo — but resistance is often the sign you’re working on something meaningful.
The Cost of Doing Nothing
So what happens to companies that stay put, doing nothing?
- Renewal increases of 5–10% keep compounding, year after year.
- Healthcare costs double in less than a decade.
- Employees bear more cost through higher deductibles and premiums, eroding trust and morale.
- Recruiting and retention suffer as competitors offer more thoughtful, sustainable benefits.
Doing nothing is not a neutral decision — it’s choosing a path that compounds against you and your employees.
A Better Path Forward
At Kimmel Benefits+, we help employers break that cycle. We’re not chasing quick fixes — we’re guiding steady, meaningful changes that protect both your bottom line and your people.
If you’re a CFO or HR leader who’s ready to stop compounding the problem and start compounding the wins, the first step is simple: start small. One change. One win. Then let it build.
We’d love to help you explore what that first step could look like for your company.