admin In the United States, medical bankruptcy is a grim reality for millions of families. Despite having health insurance, many Americans find themselves drowning in medical debt due to exorbitant out-of-pocket costs. Big insurance carriers play a significant role in this crisis, often prioritizing profits over patient care. As healthcare costs soar, employers are forced to shoulder unfair premium increases, which they pass on to employees through higher deductibles and copays. This broken system leaves many Americans vulnerable to financial ruin, even when they do everything right by securing health insurance.
Addressing this crisis head-on is David Contorno and his company, E Powered Benefits. By offering customized health plans that drastically reduce costs for employers while eliminating out-of-pocket expenses for employees, Contorno is pioneering a more equitable and transparent approach to healthcare. His mission is to provide a real solution to the medical bankruptcy epidemic, ensuring that financial stability and access to quality care go hand in hand.
The Genesis of E Powered Benefits: A Disruptor’s Journey
David Contorno’s journey into the world of insurance began at an early age. By 12, he was already telemarketing life insurance, a formative experience that set the stage for his future career. His early exposure to the insurance industry revealed the complexities and inefficiencies inherent in traditional health insurance models. For over two decades, Contorno worked as a traditional broker, providing conventional health plans that, year after year, saw premiums rise while benefits dwindled. It was during this time that he recognized the misalignment between the interests of brokers, insurers, and the very people they were supposed to serve.
The turning point came in 2014 when Contorno sold his traditional agency and began to rethink the fundamentals of healthcare benefits. Inspired by the words of the late Charlie Munger, “You show me the incentives, I will show you the outcomes,” Contorno realized that the compensation structures in traditional brokerage were part of the problem. This epiphany led him to establish E Powered Benefits, a company built on the principles of aligned and transparent compensation. By tying the company’s success to the outcomes they delivered for clients, rather than the premiums they collected, Contorno set out to revolutionize the healthcare benefits landscape.
Becoming a Pioneer in Healthcare Benefits Innovation
With over 25 years of experience in the employee benefits industry, David is a renowned expert dedicated to transforming how employers and employees navigate the complex healthcare landscape. As the Founder & President of E Powered Benefits, he focuses on developing transparent, value-based benefit plans that not only reduce costs but also enhance health outcomes. Contorno’s commitment to innovation is evident through his co-founding of the YOU Powered Symposium, a pivotal event that brings together industry leaders to discuss groundbreaking healthcare solutions. As an instructor at Certified Health Value Advisor and teaching faculty at NextGen Benefits Mastermind Partnership, he shares his extensive knowledge, and mentoring benefit advisors across the nation. His disruptive approach and creative thinking have earned him accolades, including the title of 2015 Broker of the Year.
E Powered Benefits: A New Paradigm in Healthcare
‘At E Powered Benefits, our mission is to disrupt a broken system by aligning incentives, ensuring transparency, and prioritizing patients’ well-being over profits’
– David Contorno
At its core, E Powered Benefits is more than just a benefits consulting firm. It is a disruptor in the truest sense, offering innovative health plans that challenge the status quo of the healthcare industry. The company specializes in designing custom health plans that cost employers 40-60% less than traditional plans while providing employees with no out-of-pocket costs for most services. This approach not only reduces costs but also incentivizes better clinical outcomes and a higher quality of life for employees.
Their approach includes comprehensive plan creation, risk mitigation, education, and administration, ensuring a seamless experience. Unlike traditional plans, E Powered Benefits operates with complete transparency—employers know exactly where their money goes. The company’s compensation is directly tied to the savings delivered, with fees posted openly on their website, ensuring alignment with client interests and fostering trust through clear, measurable results.
E Powered Benefits’ offerings extend beyond consulting. The company has positioned itself as a leader in education and mentorship within the industry. Through a course validated by The Validation Institute and an annual conference that draws hundreds of industry professionals, Contorno and his team are committed to sharing their knowledge and empowering others to adopt similar models. This dedication to education reflects Contorno’s belief that a rising tide lifts all ships, and by spreading the principles of transparency and alignment, he aims to create a ripple effect that will transform the industry as a whole.
The Man Behind the Mission: A Leader Who Walks the Talk
What sets David apart from many of his peers is his unwavering commitment to the principles he espouses. As a leader, he is not content to simply talk about change; he actively lives it. Contorno applies the same metrics and incentives to his own healthcare decisions that he advocates for his clients. This hands-on approach has earned him a reputation as a leader who walks the talk, and it is this authenticity that has made him a trusted advisor to many.
Contorno’s leadership style is characterized by a deep sense of mission alignment. He believes that the key to success lies in finding team members whose “why” aligns with his own. This focus on purpose over experience has allowed him to build a team that is as passionate about disrupting the healthcare industry as he is. As he continues to grow and develop as a business leader, Contorno remains committed to mentoring the next generation of consultants and empowering them to carry on the work he has started.
Educational Initiatives: Empowering the Industry
David is not only focused on building innovative health plans but also on spreading his knowledge throughout the industry. Together with his wife and business partner, he has developed a full-day course that he helps teach, empowering other brokers and consultants to adopt his successful model. Additionally, Contorno hosts the annual You Powered Symposium, a three-day event that brings together hundreds of industry professionals, plan partners, and clinicians to share insights and strategies. He also runs a mentorship program, guiding advisors and their clients on how to effectively build and manage these transformative health plans.
Overcoming Challenges: A Battle Against Misconceptions
Like any trailblazer, David has faced significant challenges on his journey to success. One of the most daunting obstacles has been the deeply ingrained misconceptions held by both employers and the general public about healthcare and health insurance. Many believe that large insurance companies like Blue Cross or UnitedHealthcare are incentivized to keep claims down, when in reality, these companies profit from higher premiums and more expensive claims. Contorno’s mission has been to educate employers about the true nature of these incentives and to offer an alternative that aligns with their best interests.
Another significant challenge has been overcoming the disbelief and scepticism of potential clients. Decades of failed promises from large brokers and carriers have left many employers wary of claims that seem too good to be true. Contorno has tackled this head-on by demonstrating, time and again, the tangible savings and improved outcomes that E Powered Benefits can deliver. His deep understanding of how healthcare is delivered and paid for in the U.S. has been instrumental in convincing clients to take the leap and trust in his innovative approach.
Defining Success
For David, success is about making a tangible impact on people’s lives by ensuring access to high-quality care at lower costs. His mission centers on removing financial barriers, allowing patients to obtain expensive, life-saving medications without out-of-pocket costs. By crafting health plans that eliminate these burdens, Contorno not only saves employers money but also puts hundreds of dollars back into employees’ pockets each month. This approach empowers individuals to focus on their health without financial stress, redefining success not by profits but by the real-world benefits delivered to those who need it most.
Tackling Industry Challenges: How E Powered Benefits is Changing the Game
David has a clear-eyed view of the challenges plaguing the healthcare benefits industry. For decades, the industry has been stagnant, with carriers, brokers, and health systems profiting from inefficiencies that drive up costs for employers and patients alike. Unlike most industries, where reducing costs increases profit, the healthcare system often operates in reverse—higher costs mean higher profits for insurers and providers. This misalignment of incentives leads to opaque pricing, where neither the provider nor the patient knows the true cost of services until after they’re rendered, and where increased competition paradoxically drives prices higher.
Contorno identifies several systemic issues, such as the role of Pharmacy Benefit Managers (PBMs) in inflating medication costs through “spread pricing”. In one case, a national carrier charged a client $100,000 per month for a medication that actually cost $22,000, pocketing the difference. E Powered Benefits tackles these issues head-on by designing transparent health plans that eliminate such profiteering. They work with PBMs that are aligned with lowering costs, ensuring that patients can access necessary medications, often at no out-of-pocket expense. By removing drugs from coverage and navigating patient assistance programs, Contorno’s team can secure medications for free, transforming a broken system into one that genuinely serves its users.
A Vision for the Future: Empowering an Industry
‘Our customized health plans save employers 40-60% and provide employees and their families access to care with zero out-of-pocket costs’
– David Contorno
David’s vision for the future of E Powered Benefits is both ambitious and inspiring. He is committed to extending the company’s influence across the U.S. His goal is to build an army of consultants, employers, and employees who are willing to stand up against the current healthcare system and demand better outcomes. By fostering a culture of transparency and honesty, Contorno believes that it is possible to create a healthcare system that truly prioritizes the well-being of patients.
Looking ahead, Contorno envisions E Powered Benefits taking on a more prominent role in mentorship and leadership within the industry. In the next five years, Contorno expects E Powered Benefits to continue growing, both in terms of size and influence. He aims to continue growing the company’s educational efforts, expanding the reach of their courses and conferences to empower more professionals to adopt the principles of aligned compensation and transparent healthcare. In this way, Contorno hopes to create a lasting impact on the industry, helping to shift the balance of power away from traditional insurers and towards the people who matter most: the patients. By empowering more professionals to adopt the E Powered Benefits model, Contorno hopes to create a ripple effect that will ultimately lead to a healthier, more affordable healthcare system for all.
Conclusion: A Legacy of Impact
David Contorno’s journey as an entrepreneur is a testament to the power of visionary leadership and unwavering commitment to a cause. Through his work at E Powered Benefits, he has not only challenged the status quo but has also created a new paradigm for how healthcare benefits should be delivered. His impact on the industry is already significant, and as he continues to push for change, there is no doubt that his influence will only grow in the years to come.
As one of the 10 Most Influential Entrepreneurs to Look Out For in 2024, David Contorno embodies the qualities of a true disruptor: innovation, integrity, and a relentless pursuit of excellence. His work is not just about lowering costs or improving benefits; it is about creating a healthcare system that truly serves the needs of people. In doing so, Contorno is not just transforming an industry; he is leaving a legacy that will be felt for generations to come.
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