Are you paying too much for health care?
Plante & Moran was recently engaged by a manufacturing client to assess its benefit plans. The client’s initial impression was that all they needed to do was introduce modest employee contributions to bring its plan to market. Plante & Moran benefit consultants conducted a thorough assessment of the plan design, employer-to-employee cost sharing, and financial structure of the plan.
Benchmarking data revealed that the combination of the current plan’s design and lack of any contributions resulted in the employer’s plan being approximately 40 to 50 percent above market standard. Additionally, we found that by changing from a self-insured financial arrangement to an insured plan, the client could eliminate in excess of $250,000 of annual liability.
In aggregate, Plante & Moran provided the research-based guidance needed to move plans closer to market, reduce corporate benefit spending by more than $350,000, and maintain a plan design that delivers benefits that were about 10 percent above market standards.