In this powerful episode of the Cutting Edge Benefits Podcast, Tom Quigley breaks down the real reasons businesses say “no” to better healthcare strategies—even when the math proves they could save hundreds of thousands (or millions).
This episode is all about objections—not logical ones, but emotional, habitual, and often costly ones that keep companies stuck in outdated systems.
If you’ve ever wondered why companies continue overpaying for healthcare… this episode answers it bluntly.
This is the most common—and most dangerous—response Tom hears.
What it usually means:
- The HR manager or office administrator is in control
- The owner is not involved
- No one can clearly explain what the current broker actually does
Tom’s response cuts straight to the truth:
👉 If you’re spending $1M and could save $500K, that’s the equivalent of a $5M sale
The real question becomes:
Is your current agent worth that lost opportunity?
A recurring theme:
👉 Business owners are not involved in one of their top 2–3 expenses
Instead, decisions are often left to:
- HR directors
- Office managers
Tom calls this out directly:
- It’s a profitability issue, not an HR task
- It directly impacts company valuation (EBITDA)
Tom’s response:
👉 “Did you actually research it?”
Most people:
- Haven’t reviewed Section 105 tax law
- Haven’t verified the structure
- Haven’t consulted a CPA or tax attorney
Once they do?
👉 The skepticism disappears—because it’s just math.
This one is rooted in relationships.
Tom flips it:
- If your broker makes $50K
- But costs you $500K+ in missed savings
👉 Why not just pay them directly and keep the rest?
It exposes the disconnect between loyalty and logic.
Typically comes from HR or admin staff.
Tom’s take:
- This is a job responsibility, not an inconvenience
- Avoiding the work costs employees real money
He even shares that he sends these objections directly to business owners to highlight the issue.
Tom’s response is simple:
👉 “Do you understand your current plan?”
Most answer: No
So the real question becomes:
👉 Why stay in something you don’t understand instead of switching to something simpler?
This one comes down to denial.
Tom compares it to reality itself:
👉 “You don’t believe the numbers? That’s like saying you don’t believe in breathing.”
The numbers:
- Are based on math
- Are verifiable
- Are repeatable
But belief often loses to comfort.
A big fear—but usually unfounded.
Tom explains:
- The strategy is based on Section 105 of the tax code
- Supported by IRS and Department of Labor guidance
- Backed by documented rulings
The real issue:
👉 People ask insurance agents instead of tax professionals
Tom highlights a harsh reality:
- Many decision-makers are not financially accountable
- They don’t feel the impact of rising costs
Meanwhile:
- Employees pay more
- Companies lose profit
- Nobody questions the system
One of the strongest points in the episode:
👉 Employees are being financially squeezed
Examples:
- $300–$400/month premiums
- High deductibles ($5,000+)
- Lower take-home pay
Tom frames it clearly:
👉 Employers have a fiduciary responsibility to do better
Tom makes it clear:
👉 These are not logical objections—they’re emotional ones
Root causes include:
- Fear of change
- Comfort with the current system
- Misplaced trust
- Lack of education
- Most objections are emotional, not logical.
- Owners must be involved in healthcare decisions.
- The current system persists because people don’t question it.
- Healthcare costs directly impact company value and employee well-being.
- The solution is not complicated—it’s just different.
“If this was a 401(k), you could go to jail for making these decisions.”
“Math doesn’t lie—but people still ignore it.”
“You’re not just overpaying—you’re taking money out of your employees’ pockets.”
This episode is a must-listen for:
- Business owners not involved in benefits decisions
- CFOs focused on profitability and valuation
