Challenge:
Rapidly growing electronics company made an acquisition in Arizona and quickly found themselves in a handful of states. The group was now looking at yet another above trend medical plan increase and was trying to find a way to establish a first dollar healthcare account for their employees. COBRA and FSA Vendors were falling short of promises, especially in their new state locations.
- BCBS of TX medical initial renewal was 23.4%
- Revised renewal was brought down to 18.2%
Solution:
A properly designed CDHP strategy was implemented that resulted in a 5.3% increase with no reduction in the economic value of their benefits. The new strategy allowed employees to access High Performance Networks alongside a broad National Network plan.
CDHP strategy included first dollar funds for all employees.
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- $1,000 HSA fund on all tiers
- $500 HRA fund for employee only tiers
- $700 HRA fund for dependent tiers
Package discounts were leveraged with the new medical carrier and produced positive results on ancillary coverages.
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- Dental rate pass was achieved
- Vision was -16.3%
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A new vendor was found for COBRA/FSA administration that has enhanced service to both the employer and employees. New robust employee benefit guide was created to explain all benefits to employees. Trend Neutralizer was implemented to guarantee lower future renewals.
Impact:
1% of savings compared to the initial renewal. First dollar healthcare accounts are having a tremendous impact on the benefit experience for all employees. BCG capabilities and services have significantly improved the day-to-day benefit administration for the HR team. We have become a true partner for them and their employees.
