IBT Consulting Frequently Asked Questions (FAQ)

Employee Benefits Strategy, Fiduciary Consulting, and Healthcare Cost Management

IBT Consulting is a fiduciary benefits consulting firm that helps employers reduce healthcare costs, improve transparency, and implement long-term health plan strategies.

This FAQ answers the most common questions from HR leaders, CFOs, and executive teams.

What is IBT Consulting?

IBT Consulting is a fiduciary employee benefits consulting firm that specializes in:

• Healthcare cost reduction strategies
• Self-funded and level-funded plan design
• Vendor and pharmacy oversight
• Compliance support (ERISA, CAA, ACA)
• Long-term benefits strategy

We do not operate as a traditional broker. We act as a strategic advisor aligned with the employer’s financial and operational goals.

What does “fiduciary benefits consultant” mean?

A fiduciary benefits consultant is legally and ethically required to act in the best interest of the employer.
At IBT Consulting, fiduciary responsibility includes:

• No carrier bonuses, overrides, or hidden incentives
• Transparent compensation structure
• Objective recommendations across vendors and carriers
• Ongoing plan oversight and performance monitoring

This eliminates conflicts of interest common in traditional broker models.

How is IBT Consulting different from a traditional insurance broker?

Traditional brokers are typically compensated by insurance carriers through commissions and incentive programs.
IBT Consulting:

• Does not accept carrier bonuses or overrides
• Aligns compensation with client outcomes
• Focuses on strategy, not product placement
• Manages healthcare as a business expense, not a renewal event

Key difference:
Brokers sell plans. IBT manages healthcare spend.

Why are employer healthcare costs increasing every year?

Healthcare costs increase due to multiple systemic factors:

• Pharmacy cost escalation (especially specialty drugs)
• Lack of transparency in pricing and contracts
• Increased claims utilization without management
• Chronic disease driven by poor population health
• Misaligned vendor incentives

Most employers rely on reactive renewal strategies, which do not address root cost drivers.

What is a self-funded health plan?

A self-funded (self-insured) health plan is a model where the employer pays for actual employee healthcare claims instead of fixed insurance premiums.
Benefits of self-funded plans:

• Access to claims data
• Greater plan design flexibility
• Potential cost savings over time
• Transparency into healthcare spend

What is a level-funded health plan?

A level-funded plan is a type of self-funded plan that includes:

• Fixed monthly payments
• Stop-loss insurance protection
• Potential refund if claims are lower than expected

Level-funded plans are commonly used by small to mid-sized employers transitioning away from fully insured plans.

Is self-funding risky for employers?

All health plans carry risk. Self-funding manages risk differently.
Risk mitigation strategies include:

• Stop-loss insurance (caps large claims exposure)
• Data monitoring and reporting
• Strategic plan design
• Vendor and pharmacy management

The greater risk is lack of visibility and control in fully insured plans.

How does IBT Consulting reduce healthcare costs?

IBT Consulting uses a data-driven, year-round strategy:

• Claims data analysis to identify cost drivers
• Pharmacy benefit optimization
• Vendor contract evaluation and renegotiation
• Plan design adjustments based on utilization
• Employee health and behavior-based strategies

The goal is sustainable cost reduction, not short-term premium relief.

Do you provide compliance support for employers?

Yes. IBT Consulting supports compliance across:

• ERISA (Employee Retirement Income Security Act)
• CAA (Consolidated Appropriations Act)
• ACA (Affordable Care Act)
• Section 125 plan documentation
• 1095-C reporting requirements

Important: Under the CAA, compensation disclosure compliance is the employer’s responsibility, not the broker’s.

What is the CAA and why is it important?

The Consolidated Appropriations Act (CAA) requires:

• Transparency in broker and consultant compensation
• Disclosure of direct and indirect payments
• Increased employer accountability

Failure to comply can result in:

• Financial penalties
• Fiduciary liability exposure

IBT Consulting helps employers meet and maintain compliance.

What size companies does IBT Consulting work with?

IBT Consulting typically works with:

• Employers with 50+ employees
• Mid-sized and growing organizations
• Companies exploring self-funded or level-funded plans

If healthcare is a top business expense, IBT Consulting provides value regardless of industry.

What industries does IBT Consulting serve?

We serve a wide range of industries, including:

• Professional services
• Manufacturing
• Healthcare organizations
• Education systems
• Non-profits

Our approach is based on financial strategy and plan performance, not industry type.

How does employee health impact healthcare costs?

Employee health is a primary driver of claims costs.
High-cost conditions are often linked to:

• Poor nutrition
• Chronic disease (diabetes, hypertension, obesity)
• Sleep and stress issues

Without addressing behavior and lifestyle factors, healthcare costs will continue to rise regardless of plan design.

When should employers start planning their benefits strategy?

Benefits strategy should be managed year-round.
Recommended timeline:

• 6–12 months before renewal for strategic planning
• Quarterly reviews of claims and performance
• Ongoing adjustments based on real data

Reactive renewal planning leads to higher long-term costs.

What does the IBT Consulting process look like?

IBT Consulting follows a structured process:

• Discovery and data collection
• Claims and plan analysis
• Identification of cost drivers
• Strategic roadmap development
• Implementation and ongoing management

IBT Consulting remains actively involved beyond strategy—execution and oversight are core to the model.

Do you replace our current broker?

In most cases, yes.
IBT Consulting replaces:

• Traditional broker relationships
• Commission-based advisory models

We transition organizations to a fiduciary, strategy-led approach to healthcare management.

How do we know if IBT Consulting is the right fit?

You are likely a strong fit if:

• Healthcare costs increase year over year
• You lack access to actionable claims data
• Your current advisor is primarily focused on renewal
• You want a long-term cost management strategy

What is the first step to work with IBT Consulting?

The first step is a consultation and plan review.
This includes:

• High-level assessment of your current plan
• Identification of potential risks and inefficiencies
• Initial strategic recommendations

This process provides clarity on:

• Where your healthcare dollars are going
• What opportunities exist for improvement

Contact IBT Consulting

To discuss your current benefits strategy or request a plan evaluation:
IBT Consulting
Fiduciary Benefits Consulting | Healthcare Cost Strategy
→ Schedule a consultation
→ Request a plan review
→ Download a healthcare cost strategy guide