Oil Field Construction Client
A 160-life employer was faced with a 72% rate increase due to two large medical claims. The broker needed a solution to reduce the increase and not unduly penalize the employees.
In this case, we recommended increasing their medical plan deductible from $2500 to $5000 and adding in a voluntary hospital/critical illness combination plan as well as an off the job accident plan.
The broker was able to negotiate the increase down from 72% to 52% and the employer absorbed this cost fully.
This allowed the employees room in their own budgets to purchase the hospital/CI plan which would protect them from both the increased out of pocket expense as well as protect their family budgets if they were unable to come to work.
In addition to providing the strategic solution, De Paoli Professional Services also provided onsite enrollers for group meetings to explain what was changing, how to utilize the new benefits and to provide onsite enrollment assistance.
Participation in these voluntary plans was approximately 45% with many employees choosing both the hospital/CI plan and the accident plan. Ongoing enrollment is running at approximately 50% participation.
Employee morale and satisfaction was maintained.