Challenge:
500+ employee manufacturing company that has experienced significant growth over the past 3 years, growing from 70 employees to 616. They needed a benefit strategy to support that growth. They also were struggling with budgeting, as they did not have accurate insight into their claims data and plan performance.
Solution:
Redesigned their plans to incorporate a Consumer Driven Health Plan (CDHP) approach, including establishing first dollar health care accounts for employees. Added a High Performance network option to improve affordability for employees. Redesigned their contribution strategy to reward employees for choosing the most cost effective plans. Implemented a population health/data analytics system to get visibility into their past claim’s performance and future expected costs. Overhauled and implemented benefit administration system to support the new plan design.
Impact:
Negotiated with their current medical carrier a 2% reduction in premium, mid plan year. Resulted in a savings of $104,750. Secured an 18-month rate guarantee, based on their superior claims performance, thus giving budget certainty. 72% of participants enrolled in a CDHP plan. 39% of participants enrolled in a High Performance network yielding additional savings.
