Trimming the cost of employee health benefits
Successful businesses are always looking for opportunities to keep costs low. We suggest you look for savings by restructuring your employee health benefits and/or negotiating new contracts with your benefits providers.
You don't have to be afraid of losing your ability to attract and retain good employees. In case after case, our employee benefit consulting experts have helped organizations reduce their healthcare costs while maintaining and sometimes enhancing benefits.
Controlling the cost of employee health benefits
We will review your employee healthcare benefits. We will create models to analyze the effects of changing various factors such as plan design, funding arrangement, vendor selection, and wellness strategies.
Our employee benefit consultants can help you compare your plan designs and costs to market. For instance, after we did some benchmarking for an automotive supplier, we found that the company's employee health benefits program was 150 percent of market because of an outdated plan design and no employee contributions.
We recommended a competitive plan design and employee contributions that reduced the employer's cost of operating the plan by $250,000 in the first year.
Local government saves $900,000 after benefits plan review
For another client, we were able to recommend changes yielding up to $900,000 in savings. The municipality anticipated spending $6.7 million on employee health benefits for its 450 employees and retirees in 2008.
During the renewal process for 2009, we helped the government leaders investigate self-insuring plans with its carrier. By self-insuring and purchasing appropriate stop-loss insurance, the client expects to save $400,000 compared to its 2009 fully-insured renewal, with additional savings expected in the next two years.
The remaining $500,000 in savings resulted from our recommendation to move Medicare eligible retirees to comparable Medicare Advantage plans. These plans provide comparable benefits to the current retiree medical plans, but at a lower cost.
Techniques that prevent cost
As well as cutting cost, we can help you implement creative techniques to prevent cost. We will help you provide your employees with behavioral and economic incentives to improve their health and reduce the cost of your employee health benefits.
We understand that providing the right employee health benefits plan is vital in attracting and maintaining good employees. Our employee benefit consultants will work with your benefits administrator or administration team to review your current benefit plans and analyze the impact that changing various factors, such as plan design, vendor selection, funding arrangement, and wellness strategies, would have on your plan.
We will help you discover the right plan that will save you money on employee health benefits while maintaining and sometimes enhancing benefits.