A local business consulting firm with 87 employees spread across two additional New Jersey locations.
A little over one year ago, this prospect came to us expressing frustration with the repeated double digit increases in their employee health program each year. They felt their incumbent benefits broker should have been doing more to help control costs. We were referred to them by another client of ours, who is a friend of the owner of this firm.
MBA Solution Presented
During our initial meeting with this prospect, we illustrated how our typical approach to controlling health care premiums takes on both a creative and an aggressive approach. We explained that we spend time with the executives and/or designated representatives at each of our client firms, developing a strategic plan to meet the company’s benefit objectives while managing the costs of healthcare through implementation of cost-control strategies.
For this particular client, since they already had a high deductible program and an HSA, we recommended increasing the employee deductible and having the company fund the first $500. We also advised that they change the employee contribution schedule to one based on employee income levels and that they implement a wellness program.
We were awarded the broker of record for this group and implemented our recommended changes. Through aggressive marketing and negotiation of their renewal last year, we have also managed to keep the group with the same carrier, minimizing any disruptions from changing health plans.
As a result of the plan changes and our negotiations, the client’s renewals were nearly flat, saving the company close to $45,000 when compared to their average renewal over the prior 3 years.