Client offers three rich benefit, high cost health plans to employees.
Health plan utilization and costs are rapidly increasing each year.
Client turns to Marsh & McLennan Agency formerly Benefits Resource Group (“Marsh & McLennan Agency formerly Benefits Resource Group”) for cutting edge, long term solution
Marsh & McLennan Agency formerly Benefits Resource Group recommended a three year roll out of the Health Savings Account (“HSA”) compatible plan.
- The basic plan was replaced by a HSA plan.
- Employee education is of the highest importance.
- Employer funded a portion of the HSA.
- The most expensive plan was eliminated.
- Employees chose either the traditional or HSA plan.
- Employer funded a portion of the HSAs again.
- Employee education is still key to success.
- Minimal benefit changes were made to both plans.
- Continued education played an important role again.
- Employer funds HSA for new enrollees only.
- Year 1 returned 11 HSA enrollees and a 5% premium savings.
- Year 2 returned 120 HSA enrollees and a $90,000 premium savings.
- Year 3 returned 135 HSA enrollees and a premium increase of 3%, well under industry norms and trends.
- Marsh & McLennan Agency formerly Benefits Resource Group successfully portrayed that very high benefits inflate experience data and premium increases.
- Marsh & McLennan Agency formerly Benefits Resource Group effectively communicated the value of the consumer driven qualities and HSA plan has on members.
- Prior to the three year HSA roll out plan, the client’s premium to claims loss ratio averaged 110%. The average loss ratio in years two and three of the HSA plan returned a loss ratio of 75%.
- This long term strategy allows the employer to meet financial goals while providing a comprehensive benefit plan to employees.