Challenge:
This non-profit with 65 employees enrolled on their health plan competes for talent with colleges and universities that have rich benefit plans. Renewal increases were higher than national trends. No multi-year strategy in place. Employer did not want to change to another insurance carrier due to superior medical network of their existing carrier in their area. Reducing benefits to lower their costs was not an option as it would hurt their ability to recruit and retain talent.
Solution:
Restructured plans to more efficiently allocate employer and employee healthcare budget. Improved benefits for employees. No change in health insurance carrier. Implemented employee wellness programs with participation incentives and rewards. Provided employee education on healthcare consumerism and transparency tools.
Impact:
Total health plan costs were reduced 16.9% in the first year while increasing the value of the plans over the previous year. First year savings of $69K. Average annual increase of less than 1% over a five-year period with no reduction in benefits. Five-year savings of $540K or $12,558 per employee.
