In this throwback episode of The Power Producers Podcast, David Carothers and co-host Kyle Houck sit down with Clayton Wood, Managing Partner at C.B. Wood Financial. They discuss pharmacy benefits and how they work in the P&C world and why P&C agencies should have a conversation with their clients about benefits.
Episode Highlights:
- Clayton explains that the purpose of this series of episodes is to help P&C brokers and listeners understand that cross-selling may add an extra revenue stream to their business. (3:42)
- Clayton defines a pharmacy benefit manager in the industry. (4:22)
- Clayton discusses the importance of having a transparent pharmacy benefit manager. (7:30)
- Clayton mentions that some healthcare plans have a brilliant marketing strategy, but it is only to make employees pay more. (14:28)
- David explains to the listeners why service fees are valuable. (19:13)
- Clayton explains that in the P&C world, prescriptions are a problem for small businesses with 50 to 150 employees, and it will be one of their largest percentages of claims. (21:37)
- David believes that any P&C agency that does not even discuss benefits with its clients, whether they sell them or not, is allowing someone else to come in and have that conversation. (23:33)
Tweetable Quotes:
- “What we’re doing here on this four-episode series or more, if we decide to do more, is just to help the P&C brokers, the audience of this podcast, just understand that there is a way to add an extra revenue stream to their business by cross-selling.” – Clayton Wood
- “Putting a pharmacy benefit manager that’s transparent is really important. Nowadays, there’s a special term for them, they’re called pass through PBM’s, which means they don’t add any spread to the drugs, and they pass on 100% of the rebates.” – Clayton Wood
- “Any P&C agency out there right now, that is not even having a conversation with their clients about benefits, whether they sell them or not, is opening up an opportunity for somebody else to come in and have that conversation.” – David Carothers
Resources Mentioned: