BKS' Restructures Client's Benefits Plan and Yields Cost Savings.

Sometimes it’s better to rebuild than repair, and that’s just what we did with this group’s benefits structure. Insurance dollars are not efficient, and the fewer dollars an employer can run through the insurance carrier, the more efficient the dollars become. The final result was a more affordable plan for the employees, giving them more flexibility with their healthcare dollars.

Background and Context

  • Prospective client was receiving a renewal that was over 40%.
  • Existing plan options provided low costs when employees used services, but the premiums were expensive to both the employer and the employee.
  • Employees were buying too much insurance and were over insured.

Solutions and Tactics​

  • BKS Analyzed claims threshold reports to confirm that employees were buying too much insurance.
  • BKS restructured plan designs to create a more efficient program.
  • BKS recommended recapitalizing some of the savings into a Health Reimbursement Arrangement to give employees access to flexible and upfront healthcare dollars.
  • The plan design adjustments included reduced out-of-pocket maximums to provide additional relief to heavy healthcare utilizers.
  • BKS provided educational meetings and outreach to promote new insurance programs.

Value and Lessons

  • With the plan design changes we reduced the renewal to -2% over current.
  • With the added HRA exposure, the worst-case scenario is 10% over current, but 5% as expected.
  • The feedback from employees has been outstanding. A big culture win for this organization!
  • The benefits program is now structured for long-term sustainability.

BKS’ strategic approach provides value to benefits programs saving members money.

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