BIP Spring 2025

else. "We start with what’s best for the client and figure out the compensation later," Donovan says. "Most of the industry does the opposite, where compensation structures drive plan design instead of the other way around." Chelsea adds, "It’s about aligning incentives and creating a balance between financial strategy and human capital needs. We don’t just come in and overhaul a plan. We educate employers on why the traditional model is failing them and show them a better way." That commitment to transparency has made Ethos a leader in innovative benefit design. Innovations making a difference One of Ethos’ most impactful strategies is its Liability Reduction Initiative, which targets high risk areas in employer-sponsored health plans. "It focuses on educating members who may have better options individually than their current employer plan. That includes those who are eligible for Medicare, COBRA and dependents who qualify for tax subsidies under the ACA with the ACA family glitch," says Donovan. "The members often save hundreds to over a thousand dollars a month. And, the group's risk profile is reduced, resulting in lower premium equivalents for the remaining employees. This lowers the employer's risk exposure on a stop-loss spec basis but more often provides outsized risk adjusted returns." Their approach to financial assistance through hospitals, under IRS Section 501(r), also sets them apart. "We built internal processes to identify when employees qualify for financial assistance," Chelsea says. "This can waive 50% or even 100% of their out-of-pocket expenses, which has an incredible impact on their lives." Beyond cost-saving strategies, Ethos prioritizes communication. "None of these innovative strategies — whether it’s reference-based pricing or international sourcing — work unless they translate all the way down to the member level," Chelsea says. "If there’s friction, that’s where plans fall apart." To prevent that breakdown, Ethos has integrated modern communication tools, including a text-based system that allows employees and their spouses to engage directly with benefit advisors on their mobile phones. "We include spouses because they’re often the ones managing

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