Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.

 

In this episode, Justin interviews David Neikrug, CEO at Optimatum Solutions, about managing vendors of employer-sponsored healthcare and a recent Optimatum Solutions report, “A Path Not Taken: Vendor Management in Employer-Sponsored Healthcare”. David explores with Justin the topic of applying risk management tools to HR programs and plans, an area that risk managers rarely visit. They touch on ways for risk managers to contribute at the table using the risk management skills and tools that they have applied to recognized risk areas for years.

 

Listen to learn about the benefits of managing benefit plan vendors.

 

Key Takeaways:

[:01] About RIMS and RIMScast.

[:17] About this episode of RIMScast. Our topic is vendor management. We will dive deeply with Optimatum Solutions CEO, David Neikrug.

[:40] RIMS-CRMP Workshops! The next Virtual RIMS-CRMP exam prep, co-hosted by Parima, will be held on September 2nd and 3rd.

[:50] The next RIMS-CRMP-FED virtual workshop will be held on November 11th and 12th, and led by Joseph Mayo. Links to these courses can be found on the Certification Page of RIMS.org and through this episode’s show notes.

[1:07 ] RIMS Virtual Workshops! RIMS has launched a new course, “Intro to ERM for Senior Leaders.” It will be held again on November 4th and 5th and will be led by Elise Farnham. RIMS members enjoy deep discounts!

[1:24 ] The full schedule of virtual workshops can be found on the RIMS.org/education and RIMS.org/education/online-learning pages. A link is also in this episode’s notes.

[1:35 ] The next RIMS Webinar will be held on September 4th and will be led by AXA XL. It is titled “Lockdown & Level Up: Turn Up Your Cyber Security Game Against Creative Cyber Criminals”.

[1:48 ] On September 18th, Origami Risk will present “Driving Better Incident and Claims Management with Data, Technology & Strategic Collaboration”.

[1:56 ] On October 30th, Swiss Re will present “Parametric Insurance: Providing Financial Certainty in Uncertain Times”.

[2:05 ] On November 6th, Hub will present “Geopolitical Whiplash — Building Resilient Global Risk Programs in an Unstable World”. Register at RIMS.org/Webinars.

[2:17 ] Mark your calendars for November 17th and 18th for the RIMS ERM Conference 2025 in Seattle, Washington. The agenda is jam-packed with educational sessions that will resonate with risk practitioners in all stages of their careers.

[2:38 ] See the full agenda at RIMS.org/ERM2025.

[2:44 ] RISKWORLD 2026 will be in Philadelphia, Pennsylvania, from May 3rd through May 6th. RIMS members can now lock in the 2025 rate for a full conference pass to RISKWORLD 2026 when registering by September 30th.

[2:58 ] This also lets you enjoy earlier access to the RISKWORLD hotel block. Register by September 30th, and you will also be entered to win a $500 raffle. Don’t miss out on this chance to plan and score some extra perks.

[3:11 ] The members-only registration link is in this episode’s show notes. If you are not yet a member, this is the time to join us. Visit RIMS.org/membership and build your risk network with us here at RIMS.

[3:26 ] On with the show! You wanted to hear about vendor management, and that’s why I reached out to Optimatum Solutions CEO, David Neikrug, to discuss the findings in Optimatum’s new report, “A Path Not Taken: Vendor Management in Employer-Sponsored Healthcare”.

[3:50 ] It’s got some fascinating insights, and I wanted to extend the dialogue beyond the PDF, so let’s get started!

[3:56 ] Interview! David Neikrug, welcome to RIMScast!

[4:07 ] Justin hasn’t covered vendor management much on RIMScast. Justin invited David on the show to talk about Optimatum’s publicly available paper, “A Path Not Taken: Vendor Management in Employer-Sponsored Healthcare.” This speaks to a risk management audience.

[4:28 ] There is a link in this episode’s show notes. The average cost of healthcare in 2025 is pushing north of $25K total cost, per employee per year, and it’s an outsourced function. It’s a large amount of money.

[5:08 ] HR generally doesn’t have the traditional service level agreements (SLAs) or performance guarantees that are present in an IT services agreement. That’s a major disconnect that leads to financial, operational, and risk issues that go unchecked.

[5:44 ] Traditionally, we don’t see risk managers getting involved in HR things like employer-sponsored healthcare. David encourages risk managers to take the tools and skills they know and apply them to HR and employer-sponsored healthcare and retirement plans.

[6:23 ] David suggests risk managers should demand vendor transparency when it comes to fees, debits, and credits. David talks about pharmacy rebates, segregation, and how credits are captured and applied.

[7:09 ] David says vendor harmonization can be applied vertically or horizontally. The vertical side is when a company has acquired several HR benefits and programs, and then merges them into one program. The value creation by doing that is immense.

[7:56 ] David says horizontal harmonization applies to anybody who aggregates companies of various kinds, including family offices. Each company may have a disparate benefits plan. Bringing plans together can save hundreds to thousands of dollars per employee per year.

[8:46 ] Those are the types of numbers Optimatum Solutions is seeing as the opportunity for a risk manager to focus on as a quantifiable value proposition of bringing 10 vendor programs into one aggregated program.

[9:14 ] From a risk standpoint, you have a single source to manage across enterprises.

[9:31 ] David often speaks using numbers to convey the point. He says risk managers have a wealth of information and know what they are doing. When it comes to opportunities to create value, HR is an area they’re not thinking about.

[10:25 ] David suggests surveying risk managers and asking what percentage of risk managers are focused on the HR side, employer-sponsored healthcare, and retirement plans. You’ll see the opportunity is almost endless.

[10:44 ] Quick Break for RIMS Events!  On September 18th, the 10th Annual Chicagoland Risk Forum will be held at The Old Post Office in Chicago. Register at ChicagoRIMS.org.

[10:59 ] On October 1st through the 3rd, the RIMS Western Regional Conference will be held in North San Jose at the Santa Clara Marriott. The agenda is live. It looks fantastic! Visit RIMSWesternRegional.com and register today!

[11:15 ] On November 17th and 18th, elevate your ERM Program and career at the RIMS ERM Conference 2025 in Seattle, Washington. The agenda is live, and early rates are available until September 5th. Register now to save $110 and secure your spot at the ERM event of the year.

[11:37 ] Canadian listeners, take note, that’s just a little bit South of the border in British Columbia. That’s a great way to extend your knowledge after the RIMS Canada Conference. Visit RIMS.org/ERM2025 to register.

[11:52 ] At the top, Justin mentioned RISKWORLD 2026. Through September 4th, the RISKWORLD education content submission process is still open.

[12:02 ] RIMS invites you to share your experiences, best practices, and innovative strategies that represent the global outlook of risk management. Send us your submission, and who knows? We might select you to speak at RISKWORLD 2026 in Philadelphia! The link is in the show notes.

[12:20 ] Let’s Return to My Interview with David Neikrug! 

[12:42 ] David says the first thing to do is make sure risk managers have a seat at the table of employer-sponsored healthcare. They need to look at and understand all the terms and conditions of the contracts, looking for the low-hanging fruit.

[12:55 ] Look for Service Level Agreements, Performance Guarantees, and Built-in Reconciliation Clauses for the vendor to provide a self-reconciliation of all the debits and credits from the plan year. Understand the contracts.

[13:17 ] Second, make sure that you’re a part of the team. Look at what you can do, bringing all the tools that you’ve acquired, dealing with the risk side over the years, and applying them to the HR benefits side.

[13:54 ] For organizations of between 500 to 5,000 employees, there is ample opportunity. Those are going