Analysis of Employee Benefits Plan Results in Significant Cost Savings

SITUATION
A well-established non-profit organization wanted to ensure that they had the most cost effective benefit plan which was also a good fit with their culture. They had been with a major insurance Carrier for quite some time, and knew they needed to keep a rich benefits plan.

SOLUTION
The benefits team at Provider Group provided a detailed and creative evaluation, and also presented different scenarios showing the risks and benefits of being fully-insured vs self-insured. We consulted with the client about their various options. 

Because of our experience working with non-profits and long-term relationship with this organization, we understood what would be a viable, cost effective solution. We did an extensive amount of research, including a claims analysis and review of the potential costs and savings.

The benefits team looked at the claims history and reviewed the “whole picture” to carefully analyze and predict future costs. We took a creative approach in designing the stop loss portion, as it was essential to protect the organization’s fiduciary responsibilities. We identified that this organization would be a good candidate for self-insurance, and designed a solution that maintained a rich benefits plan while also providing cost savings. After months of analysis and presentations, it was determined that any risks associated with being self-inured justified the rewards.         

RESULT
The organization’s Management and Board supported our recommendation to self-insure. They were appreciative of our ability to consider what was essential given their culture as well as their desire for cost savings. The importance of maintaining a no deductible plan  for their employees was taken into consideration, and this new plan allowed them to keep the employee payroll contribution at a constant rate—with no increases. 

The transition from fully-insured to self-insured has been seamless for the employees, and they haven’t had an increase in payroll deduction for several years. The organization now has more flexibility in what they cover in their plan, and they’re in the driver’s seat!

We work with a myriad of employers that have different financial capabilities, risk tolerances, cultures and philosophical approaches to employee benefits—and we look at all of these to structure plans that are effective for each organization.

For more information about our services contact Jamie Moran, HIA, MHP, Director of our Employee Benefits group. He works with clients to design and implement innovative employee benefit strategies. Jamie can be reached at 401-671-6359 or jmoran@providerig.com.