Fiduciary Responsibility: A Blueprint for Building High-Performance Health Plans

November 1, 2024

By Louis C. Bernardi | Founder at BritePath

Certified Healthcare Fiduciary Coach and Health Value Advisor

When the term “fiduciary responsibility” comes up, it often triggers anxiety among plan sponsors. Many fear that it’s a looming legal threat, one mistake away from costly lawsuits. But here’s the truth: Fiduciary responsibility is not a scare tactic—and most plan sponsors aren’t at risk of finding themselves in legal hot water. Instead, fiduciary responsibility is the foundation for building a health plan that benefits both your employees and your organization.

Understanding your fiduciary role is crucial for one reason: it helps you make informed decisions that lead to high-performance health plans—plans that not only reduce costs but also improve the quality of care your employees receive.

Let’s Shift the Conversation

For too long, fiduciary responsibility has been discussed as if it were merely a compliance box to check. But it’s far more than that. It’s an opportunity—a framework for approaching your health plan with transparency, accountability, and a focus on value.

Here’s why this mindset shift is important:

1. Fiduciary Responsibility is About Value Your primary role as a fiduciary is to ensure that every dollar spent on healthcare is delivering value. This doesn’t mean simply choosing the cheapest plan but making decisions that lead to better outcomes and a healthier workforce. A high-performance health plan should prioritize quality care, fair pricing, and long-term cost savings over short-term fixes that only mask underlying problems.
2. Transparency is Key One of the pillars of fiduciary responsibility is ensuring transparency in your health plan. This means working with partners who are open about their pricing, incentives, and the value they bring. When you prioritize transparency, you gain a clearer understanding of where your dollars are going—and how they’re working for you.
3. Better Outcomes, Not Just Compliance Fiduciary responsibility shouldn’t be viewed as a burden but as a tool that helps you build a better health plan. It allows you to evaluate the performance of your current partners—whether brokers, carriers, or other vendors—and assess if they’re truly working in your best interest. By embracing this responsibility, you position yourself to achieve better health outcomes for your employees and lower costs for your organization.

It’s About Building for the Future

Rather than being a reactive measure to avoid legal issues, your fiduciary role is proactive. It’s about building a health plan that is designed to serve your employees better, while also controlling costs. A high-performance plan is one that balances cost control with quality care, and that’s what a strong fiduciary foundation enables you to do.

Most employers won’t find themselves in legal disputes because of their fiduciary role. But every employer has the opportunity to use their fiduciary responsibility as a guideline for constructing a health plan that performs. This involves:

• Regularly reviewing your health plan’s performance
• Selecting partners who are aligned with your goals
• Ensuring the plan is delivering value for your employees and organization

The Path to a High-Performance Health Plan

By shifting your perspective on fiduciary responsibility—from a compliance task to a strategic opportunity—you can build a health plan that not only avoids risk but actively improves outcomes. It’s about creating a sustainable approach to healthcare that rewards transparency, accountability, and results.

Start thinking of your fiduciary duty as a blueprint for action. A high-performance health plan begins with understanding your role and aligning with the right partners to deliver long-term success.

Questions? Contact the author at lcbernardi@britepathbenefits.com

Schedule a call at calendly.com/lcbernardi

Visit our website at www.britepathbenefits.com