A client in the medical industry was facing a fourteen percent increase in premiums with the renewal of the health insurance. Although this is considered a “trend” increase the client was unable to absorb the increase costs and maintain their current high-level benefit package need to be competitive and attract key employees. They offered an extensive benefits program to meet the needs of a diverse staff, including Medical, Life/Ad&d, Std/Ltd and LTCi .
ChallengeBeing in the medical industry they thoroughly understood how utilization and costs impact health insurance rates. The employer was seeking added expertise to help select the best option for their employees and keep their high-level benefits package. EBA’s goal was to allow the employer to continue providing high-caliber benefits within the targeted budget allowance.
SolutionEmployee Benefit Advisors reviewed their contracts, researched utilization – medical and Rx, and looked for proactive solutions. We recommend a targeted plan that incorporated a Health Reimbursement Account (HRA). The HRA would enable lower out-of-pocket expenses for employees, while saving significant premium dollars. By focusing on less utilized higher cost benefits, the HRA plan helped offset higher employee co-pays and co-insurance.
Employee Benefit Advisors was able to provide several key benefits to the client:
- The client was able to renew with a 13% decrease over previous year,
- Lower out-of-pocket expenses has resulted in less turnover, which means less time spent recruiting, hiring and training,
- The HRA program has improved overall office productivity and profitability, and
- Allowed client to maintain all ancillary benefits; Life/Ad&d, Std/Ltd and LTCi.
“I have worked with Mike for many years. He has always had our best interest at heart. He has managed to find the best benefits available within a small business budgetfrom health insurance to life to disability. If I have had any problems he has been our solution. Thank you Mike.”