This company is a Food Processing company with 223 employees located in Conshohocken, PA.
A year ago, when we approached this prospect, they were receiving sub-par results from their then-current employee benefits consultant. With just over 200 employees, they were experiencing substantial increases in the cost of their healthcare programs, had issues managing the eligibility of their dependent population and accuracy issues from their third-party administrator (TPA). They didn’t feel they were receiving proper guidance from their consultant.
MBA Solution Presented
During several discussions involving their decision makers, we were provided with the company’s claim utilization data and employee demographic information, then conducted an analysis of their HR and benefit administration technology and enrollment process. Our team determined that the strategy going forward should focus on three components:
- A marketing analysis to determine a suitable TPA replacement
- Implementation of a new benefit administration system
- A comprehensive eligibility audit and a retooled enrollment process with safeguards for accuracy and compliance
Our aggressive approach has resulted in acquisition of this company as a client, the installation of a new TPA with a lower administrative fee structure and greater network access. A new benefit administration system reduced costly enrollment mistakes. In all, these changes resulted in a first-year savings for this company of $132,000.