June 29, 2014
We’ve met with two associations in the past two weeks, one state and one national. In both groups, resource constraints and the need to expand into new areas in order to meet budget demands was on their radar.
Declining revenues, industries with consolidation that reduces association membership, and then associations with resource problems are commonplace today. We can help both groups but no one, single solution creates a reversal of the fortunes of any association.
Look at the graphic above. That graphic depicts the rise in health care spending between 2001 and today and then estimated out to 2019. Our association members are spending more and more on an out-of-control health care system for their employees through an insurance system to pay for it that goes back to World War II.
When our members have been seeing massive health insurance cost increases since the mid-90s, and then seen the incredible challenges posed by the Affordable Care Act, it’s no wonder our members have less money to spend on our associations. Despite what some politicians are saying, the system was unaffordable before the ACA passed and given the more than $800 billion in new taxes, fees and still rising premiums the system isn’t getting less expensive.
As associations we’ve tried a number of approaches to helping our members solve their benefits costs challenges and we’ve run every single one of them. All have failed to achieve the desired results over time. We’ve chronicled them all here > http://gbacapg.com/pheib/index.php
We have just opened our seventh private, association-based health insurance and employee benefits marketplace. When we open our eighth in a few weeks we will have extended the power of free markets to more than 8,000 businesses and 69,000 employees who, for the first time, will enable employers to control their own health insurance costs and provide greater choices to employees. These association marketplaces reflect the need for change in how we approach organizing and delivering employee benefits and the important role associations can play in facilitating that change.
Now, if your association doesn’t have resource issues and your members are comfortable with what they pay for health insurance – you’re in a happy place and don’t need help.
For everyone else, we’ve been where you are and have done something about it that works for our members, their employees and our associations. Give us a call.