Rapidly growing company with 500+ employees was facing a 39% increase in their health plan for the 2015 plan year and did not understand why or what to do about it. The company had experienced 4 carrier changes in 4 years.
Benefit Commerce Group was retained to diagnose the situation by performing a comprehensive financial analysis of the historical results as well as evaluating the plan designs, incentives, and employee contributions. Identified non-reoccurring large claims that were driving the high loss ratio, restructuring the benefits and taking advantage of high-performance networks. Created contribution strategy that better aligned with benefits objectives. Implemented improved enrollment communication, including monthly meetings with new hires.
Their 39% renewal increase was reduced to 7%–without reducing the economic value of the benefits. Maintained same carrier for next 5 years.
Benefits have not changed for the last 6 years and annual increases have averaged only 2.6% per year, which amounts to a $5.6 million savings vs median increases. Employees have four plan choices, with one plan having an employee payroll deduction as low as $43 per month for an HSA plan with a $3,000 maximum OOP and the employer contributes $840 to their HSA, for a net annual exposure of $2,160.