Challenge:
A mid-size employer, fluctuating in employee size between 150-400 due to mining contracts which vary in size and project length. Needed their health plan benefit offering and annual rate changes to be stable through their self-funded program. This is important to be competitive with their mining contract bid rates to win business. Strong desire to have a carrier partner who will be transparent about medical claims to understand assessments of risks, current and ongoing.
Solution:
Work with a leading, nationwide insurance carrier, to accurately establish cost factors for a competitive benefit package. The relationships built a 20-year partnership between the client, the insurance carrier and us. Open conversations with transparent, full disclosure on claim and insurance costs on a per member per month basis with monthly/quarterly assessments of claims activity. Through analytics, provide solutions to guide employees and their families to be wise healthcare consumers even with low deductibles of $500/$1000.
Impact:
Financial stability for the company and employees.
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- Over the last 20 years the average health plan renewal rate change was 5.31%.
- The last five years’ renewal rate change was 1.74%.
- Company changed employee contributions 7 years ago. It was a modest change, an extra $5 for employee coverage, $10 for spouse, $10 for child(ren), $15 for family coverages.
- The last 7 years, employee and dependent contributions have stayed the same.
Recognized within the mining industry as having the most affordable and comprehensive benefit package amongst all their competitors. The insurance carrier recognized loyalty and stability in the partnership. For the 20-year anniversary of the partnership, the carrier gave the company a $20,000 administrative bill credit at the 2020 renewal.
