Who is Apex Management Group?
Apex Management Group is a creator of industry-leading health care products that strategically meet client needs in a changing health care benefits landscape. Apex Management Group is not a Registered Investment Advisor
Why should you consider Health Care for your Financial Services practice?
There are few answers to this question, and all are worth evaluating.
Are you aware of the of the long term trends that health care cost are having on next generation financial services clients?
Most RIA’s focus their client practice on long-term financial planning activities for life events (Retirement Planning, College Savings, Owning a Business and Rolling Over a 401(k) Plan). Unfortunately, the grass roots asset gathering process has slowed dramatically for advisors. A 2016 study by Transamerica found 55% of people between the ages of 21 and 32 have saved nothing for retirement. The cost of health care is a big reason for this.
What is the proof that that health care cost is at the root of the savings problem?
National health spending -- which includes spending by federal and state governments, the private sector and individuals -- has risen from just 5% as a share of the economy in 1960 to 17.9% in 2016, according to the most recent data from the Centers for Medicare and Medicaid Services. It's projected to rise to 19.9% by 2025 (CNN Business Jan 30, 2018). Warren Buffet has even called the ballooning cost of health care a hungry tapeworm on the American economy.
Is there more “SALT” to pour in the in the wound of this saving problem?
A June 11, 2019 Chicago Tribune Editorial pointed out that the US Treasury issued final rules that would squash efforts to circumvent the cap on SALT (State and Local Tax) deductions. In States like Illinois, taxpayers now pay more of the true cost of their State and Local Government spending, because they can no longer deduct the SALT amounts over $10,000 off their federal tax return. This added tax burden, coupled with higher health care cost, will being to begin to effect even what are now considered financially comfortable individuals and families.
So what is the ultimate effect of these market dynamics?
Something has to give, and the above discussion about millennials lack of 401(k) participation, and the effects of a new federal tax structure, spell out exactly how individuals and families are solving their budget problems and lack of take home pay. Retirement and saving contributions are getting kicked to the curb. This could be the tip of a societal financial iceberg.
So what is the opportunity in Health Care?
Employers and Employees are screaming for help. A survey taken by PLANSPONSOR – October 16, 2018 revealed approximately one-half of workers (47%) report having experienced an increase in health care costs in the past year, about the same percentage since 2015. Of those reporting cost increases, 24% state they have decreased their contributions to retirement plans, and 41% have decreased their contributions to other savings.
Millennials, in particular, have seen the cost of healthcare grow faster than inflation during the lifetime. So unsurprisingly, add health care to their education debt, and it is easy to understand why they have become a generation that is cost sensitive, and unafraid of “new thinking”. They are looking for other models of payment and ways to make sure there is greater value for a service (Uber and Airbnb, for example have benefitted greatly from Millennial buying habits). If you have a viable health care solution to offer, the millennial market is ready for it.
As a Registered Investment Advisor, what can you do?
Be a good Advisor, and be the solution. Make the Convergence of Wealth and Health the mantra of your financial services practice.
Without providing affordable options for health care an Employer cannot effectively address the Employee savings problem; and Employees will not address their savings problem until they receive affordable health care options from Employers.
RIA’s that address this issue will grow their business.
What can Apex Management Group do for my practice?
With Apex Management Group products, you have an opportunity to significantly lower health care cost for your employer relationships. Assuming an employer/employee share the cost for health care, lowering the plan cost will, in turn, create savings for the employer, and additional income (money in their pay check) for the employee. This additional income could be deployed to a 401k Plan.
You should also consider -
Is it realistic to think that you could replace an entire health plan at my client organizations?
Not necessarily, but you never know until you have a discussion. Create an environment where employees can have choice of health care plans. Right now most employees only have a choice of an already “high” or “higher” deductible. Again, this affects their ability to save.
We believe your best opportunity is to provide Apex Management Group Products as an alternative to for employer and their employees. Apex products would provide an affordable choice to their existing major medical plan that would meet the government mandated Minimum Essential Coverage (MEC), and provide really great coverage.
What are the Summary of Benefits that Apex Management Group Products provide to Registered Investment Advisors?
What are the Summary of Benefits that Apex Management Group Products provide to the Employer?
What are the Summary of Benefits that Apex Management Group products provide to Employees?