Large employers managing self-funded health plans have a lot at stake when choosing vendors like a new Third Party Administrator (TPA) or Pharmacy Benefits Manager (PBM). At Chelko Consulting Group, we specialize in conflict-free vendor selection — providing transparent, unbiased advice tailored to plan sponsors so CFOs can make confident decisions without worrying about hidden incentives driving up costs.
Choosing Health Plan Vendors With Confidence
Selecting the right health plan vendors is one of the most consequential decisions an employer can make. We help benefits leaders evaluate vendors based on objective criteria — cost control, service quality, and long-term performance — rather than vendor-driven incentives that benefit everyone except the plan.
Our fiduciary advisory model is built on a simple principle: we work solely for plan sponsors. We never represent insurance carriers, PBMs, or other providers, which eliminates conflicts of interest that quietly compromise most vendor recommendations. By combining deep industry knowledge with rigorous benchmarking, we identify vendors who align with your specific goals for cost efficiency, member experience, and compliance.
Who Can Help With Vendor Selection and Negotiation for Employee Health Benefits?
Vendor selection and negotiation require specialized expertise to navigate a complex and often opaque healthcare marketplace. We serve as a trusted partner by acting as a named fiduciary alongside employers — a formal commitment to act solely in the best interest of the plan and its members.
Our team manages the entire vendor selection process, including detailed data analysis, RFP management, scorecard reporting, and ongoing performance monitoring. We use proprietary tools like our Performance Scorecard alongside extensive benchmark data — including information from Innovu and other independent sources — that most vendors don’t make widely available.
Negotiating with vendors also means uncovering hidden compensation arrangements that typically inflate plan costs. This is a common industry practice that we systematically reject. Our fee-only consulting model means no override payments, no contingent compensation — just advice that’s aligned with your plan’s best interests.
Employers working with us benefit from:
- Regular plan cost and utilization analysis to identify high-cost claims and specialty drug management opportunities
- Objective benchmarking against national and industry-specific data sets
- Transparent scoring frameworks to evaluate vendor proposals effectively
- Proactive oversight of vendor performance with monthly and annual reporting
- Support in complying with fiduciary responsibilities under ERISA, the Consolidated Appropriations Act, and other regulations
Framework for Choosing Health Plan Vendors
Benefit leaders managing self-funded health plans face a growing challenge: selecting vendors who deliver value without concealed revenue streams or conflicts of interest. Here’s the practical framework we use with our clients:
- Demand Conflict-Free Advising: Choose consultants who commit contractually to fee-only compensation and have clear policies to reject overrides or incentives from vendors.
- Use Data-Driven Performance Scorecards: Regularly track plan metrics with proprietary scorecards that identify unusual claims, compare costs to budgets, and flag suboptimal vendor performance.
- Leverage Independent Benchmark Data: Assess vendors against curated benchmarks from third-party sources that provide context well beyond standard industry averages.
- Prioritize Transparent Contract Terms: Insist on full disclosure of vendor fees, rebate arrangements, and administrative charges to avoid hidden costs.
- Engage in Continuous Vendor Oversight: Implement ongoing reviews rather than one-time selections to address emerging trends and maintain alignment with plan objectives.
Our nearly 25 years of experience, combined with our status as the first named fiduciary benefits consultant in the U.S. — uniquely positions us to support benefit professionals navigating these decisions with confidence and clarity.
Why Work With Us on Health Plan Vendor Selection?
We’ve spent nearly 25 years serving exclusively self-funded employers, and we’ve built our entire model around one idea: our clients’ interests come first, always.
What that means in practice:
- We operate independently, representing only plan sponsors — never vendors or carriers
- We provide rigorous monthly Performance Scorecards and annual planning reports built on best-in-class analytics
- We maintain an unwavering policy against override payments and contingent compensation
- We act contractually as a named fiduciary alongside clients, formalizing our accountability
- Our team is deeply experienced in controlling specialty drug costs and managing large claims
- We help plan managers make transparent, data-backed decisions that reduce plan costs and improve member experiences
Ready to Choose Vendors Without the Guesswork?
If you’re a benefits leader managing a self-funded health plan and you’re tired of wondering whether your advisors are truly working for you, we’d welcome a conversation.
Explore Our Vendor Selection Services →
Frequently Asked Questions
How can I tell if a health plan consultant is truly conflict-free? Look for consultants who contractually refuse overrides, contingent compensation, or commissions from vendors. We serve exclusively plan sponsors and document that commitment in writing — it’s not a policy statement, it’s a contractual obligation.
What tools support vendor selection decisions? We use proprietary tools including our Performance Scorecard, which delivers timely data on plan utilization and costs, combined with benchmark data from sources like Innovu to objectively evaluate vendors against peers.
What should corporate benefit professionals ask vendors during negotiation? Request full disclosure of all fees, rebate structures, hidden incentives, and administrative expenses. Without complete transparency on these items, it’s nearly impossible to accurately compare vendors or project true plan costs.
Why is ongoing vendor oversight important? Health plan needs evolve, and cost drivers shift. Continuous oversight allows employers to identify emerging issues early and adjust vendor relationships proactively — rather than reacting to cost spikes after the damage is done.