Most employers are overspending on their health insurance premiums and have been advised by their brokers that that renewing is their “best option.” In a labor market where hiring employees is a challenge, a well-managed health insurance plan can be the difference maker in attracting and retaining talented employees. Here are just a few examples of how we have been able to bend the cost curve for employers and, in many times, allowing the company to offer a richer benefit to employees while reducing costs.
A physician group with 40 employees was receiving around 10% increases every year. The company offered a very rich benefit health insurance plan to attract and retain high quality employees. Being sick and tired of dealing with these increases, they wanted to make a change and came to us for cost containment strategies. After discussing their current plan and what they were trying to accomplish, we developed a plan of action. Our solution reduced their annual health insurance spend $90,000 in the first year alone, then followed by no increase plan renewal next year.
A company with 45 employees received a 95% increase at renewal due to a significant claim activity that would increase their costs about $400,000/year, making them consider dropping coverage. By deconstructing their retail plan, our firm was able to find a solution that not only allowed them to continue offering coverage, but also lowered their annual spend by $191,000/year. The following year at renewal, they received a decrease of 10% so they enhanced their benefit offering. They are now paying less for healthcare than they did four years ago.
A small marketing company with 10 employees covered under the plan was looking for solutions to manage their annual increases. We developed a strategy and proposed a plan option that reduced their costs by 40%, saving $36,000/year. Due to the savings this strategy offered, this company was able to lower the deductible and decrease employee deductions by almost half for a richer benefit plan.
Employer group with 10 employees. Group was tired of large annual increases but wanted to continue to offer a quality benefit to their employees of which they paid 90% of the premium costs. We found a plan solution for them that reduced their annual costs by over $17,000/year, which ended up being 40% less than what they were paying for health insurance two years prior. Their premium costs are also 42% less than the national average.
Employer group with 15 employees on the plan was looking for options to reduce their health insurance premiums. After researching multiple options, we found an alternative plan design allowing them to maintain similar benefits and reduce costs by $25,000 in the first year, which ended up being 20% lower than what they were paying for coverage the previous year.
An aggregate mining company of 15 employees was looking to lower their healthcare costs and offer a richer benefit to employees. While this might be viewed as an impossible task, our agency was able to find an alternative plan structure lowering their overall costs by $60,000 in the first year. With these additional savings, the company was able to lower their deductible from $4,000 to $2,500 for their employees and reduce copays for services from $75 to $25 per visit.
A pipeline contracting company with 75 employees was looking at a renewal increase of over $54,000 for the following year and looking for a change. After meeting our team and allowing us to dissect their current plan, we provided a solution that reduced their costs by $175,000 in the first year with the same benefit offering. These savings were put back into the company and allowed them to offer no deduction increases to employees the following year.