Benefits Consulting

Client Profile

  • Semiconductor Manufacturer
  • Industry: Electronics Manufacturing
  • # of Employees: 675
  • Located in 28 States
  • Funding Type: Fully Insured

$1m

Saved

20%

Annual Savings

13%

Renewal Costs

40%

Claims Costs

Employer Challenges

  • Large claims accounted for 60% of total claims cost (less than 2% of the population accounting for 60% of claims)
  • No structured Case/Disease Management programs
  • High HMO Capitation expenses
  • Employee contributions used to offset insurance costs

CarePlus Strategy

  • Introduce strong Case/Disease Management programs, focus on the high risk population (2% of group)
  • Utilize Precept Health Management Services to manage large claimants
  • Move to self-insured funding to realize cash flow savings
  • Change HMO Capitation program to EPO. Eliminate capitation feature and move to fee-for-service arrangement (leverage positive demographic risk)

The Results

  • Financial savings of 20% or $1 million annually
  • Renewal 13% below current costs
  • Maintained employee contributions and benefits
  • Large claimants dropped from 60% to 20% of total claims cost
  • 4-year annual renewal average of 1.3%

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