Benefits Case Study #1 (Massive Savings)
- Situation: IT services company with 55 employees was concerned with their rising health insurance premiums. They had just gotten hit with a 30% increase, bringing their total premium to $37K monthly.
- Solution: Using our expertise and deep carrier relationships, we were able to reduce their premiums to $28K monthly while increasing their current benefits. We did this by analyzing their historical claims data to identify the weak spots. Armed with this information we were able to create a plan that best suited the company’s needs.
- Success: In addition to the monthly savings, the company received an additional $35,000 refund from the insurance company due to low claims utilization for that plan year. This was achieved due to our monthly claims fund analysis where we analyzed the various claims and educated employees on more efficient and cheaper ways to use their insurance plan (Eg: finding a generic version of a prescription drug that initially cost 4X). This claim alone increased the refund by $6,800 over the course of the year. Thus in addition to the annual savings of $84,000 of premiums, we were able to generate a further savings of $35,000.
Benefits Case Study #2 (Enhanced Benefits & Compliance Review)
- Situation: Fast-growing healthcare services company was looking to enhance their current benefits options to increase employee retention while also staying compliant.
- Solution: We reduced their health insurance costs by 20% through solutions such as a carve-out. We used those savings to add other lines of coverage such as disability insurance to enhance value to their employees. To increase tax savings for the employee, we implemented a Section 125 plan. This allows employees to increase their take home pay by using pretax dollars to contribute to their employee benefits. It also saves the employer 7.65% FICA taxes on each pre tax dollar contributed by the employee.
- Success: Utilizing our carrier relationships, we were able to reduce individual disability policy premiums by 15-20% for every employee. The employer received multiple emails of appreciation from the employees for providing this benefit as well as reducing their health insurance costs. In addition, during our compliance check-up, we were able to identify a potential liability of over $60,000 in federal and state penalties. With our help over the next few months, they were able to fix it and become fully compliant
Benefits Case Study #3 (PEO Carve-Out)
- Situation: Healthcare management company with 40 employees was part of a well renowned national PEO (Professional Employer Organization). They were concerned with being overcharged for services and wanted to analyze options to leave the PEO.
- Solution: We were able to carve out all the services provided by their current PEO (Health insurance, Payroll, Workers Comp, 401K). This process took over 3 months as we had to coordinate with the employer as well as the various service providers in order to provide a seamless transition for the company and its employees.
- Success: The company saved 20% on health insurance costs ($6,000 per month) and an additional $1,500 monthly in Admin fees. The overall monthly savings was $7,500 without any reduction in service levels. The employer portion of the savings was $4,500 monthly, which covered the salary of their HR Manager that they already had on staff.