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An 800 life manufacturing client with locations throughout the United States faced a 34% medical and prescription increase for their 2009 -2010 plan year. Here are the highlights of the results Model Consulting achieved for this client:
- Initial non union medical and prescription renewal resulted in an increase of 34.1% or an additional $1,378,793 in annual premium.
- Comprehensive national and local marketing conducted on fully insured and self insured basis.
- After a detailed analysis, minimal plan design changes, aggressive negotiation and carrier changes, the renewal was reduced to 11.6% or $444,409.
- The contribution strategy was modified to foster positive employee relations. Many employees had the option of not paying any additional cost for the base plan offering.
- The overall cost impact to the client for the medical and prescription plans after contributions were considered was 10.8% or an additional $314,623.
- A choice of medical plans continued to be offered further supporting employee satisfaction.
- Original dental renewal resulted in an increase of 15% or $41,393.
- Aggressive negotiation with the existing carrier resulted in no renewal increase; however the new medical carrier provided a more competitive dental option.
- Implementing a new dental carrier resulted in an approximate savings of 2.4% over current or $6,075.
- Negotiated a reduction and a three year rate guarantee on the life and AD&D insurance.
- Enhanced the Non Union Life and AD&D benefit to two times annual salary for all employees with minimal financial impact. Over all cost increase was 1.1% or $1,349.
- Implemented a Voluntary Life benefit to all non union employees.
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