HR Malpractice | Failing to Do Right by the Company Can Cost Everyone

HR Malpractice | Failing to Do Right by the Company Can Cost Everyone

Everyone knows what the term “malpractice” means when it comes to the healthcare industry. But what about other fields – like human resources, for example? It is entirely possible to commit malpractice in a field like that, specifically if the HR administrator is failing to carry out due diligence to find services that are in the company’s best interests – and, the interests of the employees who are receiving those services. A perfect example of this is failing to make sure the company is paying for the most affordable and effective healthcare plans possible.

Why would an HR person do this? Often, the HR administrator works directly with a broker on setting up the company healthcare plan – and often, that broker is tied firmly to an insurance company. There’s nothing inherently wrong with that, but for the fact that the specific insurance company the broker is affiliated with will be sure to incentivize him heavily for getting them business. That means, of course, that the broker may recommend insurance carriers that:

  • Charge more than the company can      afford
  • Don’t offer all the coverage options      the company needs
  • Don’t have enough providers in the      company’s local area

…but the HR administrator will only know that if he or she carries out due diligence to find out what the specific insurance carrier can provide. If all the HR department does is meet with a broker, look at a single insurance carrier and negotiate for the lowest rates before signing on the dotted line on behalf of an entire company – well, that’s hardly in the best interest of the company or its employees. Failing to save the company money, failing to make sure employees get the right coverage…that’s HR malpractice.

Now, compare that to the experience of working with a healthcare consultant that is not tied to any specific insurance carrier. At GM&A, we give the HR administrators we consult the opportunity to reduce costs for the companies they work for by forming their own customized healthcare networks. The providers are in the company’s local area, and the plans are set up to cover the needs of the company based on its employees’ own past claims. And on a regular basis, we perform audits of our clients’ cases to make sure no one is being overbilled for care an employee receives. We don’t just help companies get set up with a healthcare plan; we also help them manage it.

Thinking outside the box takes some courage in any field, including human resources. Rather than committing HR malpractice, we at GM&A hope that HR professionals will keep an open mind and consider meeting with us to see what we can do for them. Contact GM&A at (325) 224-3245 to request more information or schedule a complimentary appointment at your location. We service employers throughout the United States.

New Comment

Not Publicly Displayed
Leave Blank

For a Consultation and detailed Health Plan Analysis
Call Hurb VandenHoogen at (858) 775-9170
or email