A Tailored Insurance Solution Addressed Double-Digit Premiums Increases, Poor Claims Performance and Misaligned Benefits.

Challenge

A large, 1,000-life client with locations across the U.S. struggled to align the company's employee benefits program. It was important to the client that the program be financially feasible and that the employees perceived this benefit as valuable. The client's three divisions were each insured with a different carrier, spending close to $10 million a year. Employee education about the plan and benefits was low and employee contributions were high. The client experienced double-digit increases year after year.

Poor claim performance and lack of data left the client without an explanation for the increases.

Solution

Working with the client during each division's renewal, the Hylant team moved the fully insured program to a captive-like, self-funded program and increased the stop loss deductible while reducing premium. The client moved to a transparent, independent third-party administrator and pharmacy benefit manager. ELAP was put in place across the board, even though it started as an option. The client now is able to show 100% transparency for fixed costs and address any high-cost utilization.

Hylant helped the client create and offer an HSA program that includes a long-term plan that rewards employees who participate. The client contributes $500 per employee per year and $1,000 per family per year towards the employee's HSA.

To address the lack of employee education, all employees were encouraged to join an in-person educational session at each location. These sessions helped address any specific concerns or questions at each location as well as provide information on high-quality, low-cost providers and the importance of choosing the right provider.