Rock Ledge Resources > Jerry Isensee > Representative Project - Employee Benefits Cost Containment

Employee Benefits Cost Containment

Business Challenge

Over a period of several years, a company experienced 10% to 20% annual cost increases in its benefits programs. The company wanted to continue to offer excellent benefits to its employees, but contain costs and adhere to their overall budget. The company sought an innovative plan that would demonstrate their leadership in developing new programs, be fair to employees and the business, and control costs to both parties.

Solution

A Rock Ledge Resources principal undertook this challenge, with only four months before a new benefit assignment contract had to be signed. Upon reviewing current program and companies, it became evident that an independent agent who could shop all viable options was needed. Agencies were interviewed and a selection was made. Various plans were reviewed against current trends and the parameters for the plan were established. Benefits providers were requested to submit bids, and the principal created a spreadsheet for analysis of the costs and options of each provider's plan. The results were compared to the company's criteria, and a plan was selected. To address fairness and cost issues, the company decided to offer full single coverage, and the employees were offered five coverage choices that were out-of-pocket expenses.

Results

With new plan in place that offered excellent coverage, the company saved $2 million over 12 years. Employees were able to predict their out-of-pocket costs and were very receptive to the plan. New products and changes to benefits laws occur each year, but the program is updated annually with close attention to costs and benefit improvements.

Relationships: Jerry Isensee | Employee-Focused