Case Studies
Eastern Benefits Group Improves Choice and Plans While Streamlining Administration
The Client:
Massachusetts-based commercial printing firm with 150 employees.
The Challenge:
Client had been offering its employees two similar HMO options from two different carriers. In addition, they were using three different insurance companies for their Life/AD&D, Long-Term Disability, and Short-Term Disability plans.
The firm wanted to:
- Offer more health plan choices.
- Consolidate the number of carriers.
- Streamline administration.
Eastern Benefits Group began working with the Director of Human Resources in March to prepare for their July renewal. The firm had been using an alternative insurance brokerage firm, and decided to have both the incumbent firm and Eastern Benefits Group provide options for the upcoming renewal.
The Results:
Eastern Benefits Group won the business. We structured a plan that consolidated their health coverage with one carrier, but offering three very different types of coverage to meet the diverse needs of their employees.
- A "Premium" HMO plan.
- Lower-cost, tiered co-payment HMO plan.
- PPO (which does not require referrals and offers the most flexibility in usage).
Eastern Benefits Group was able to negotiate with the insurance company in offering the "premium" HMO at the approximate same cost while offering a reduced rate for the tiered co-payment HMO and a higher rate for the PPO.
The employees were very happy with the new choices that they were presented. Employees who were concerned with their weekly payroll deduction amounts opted for the tiered co-payment plan while the employees who did not have an affinity for HMOs opted for the PPO plan. Many of the employees who decided to continue with the "premium" HMO were thrilled that their payroll deductions would remain approximately the same (very unusual in a health insurance marketplace where trend is 12-14%!).
Eastern Benefits Group worked with the client to structure a premium contribution strategy that reflected the levels of benefits and met the goals of the organization. In addition, we helped coordinate the open enrollment meetings that presented the options to the employees and drafted the open enrollment communication material for employees.
Aside from the health plan results, the following was accomplished:
- Eastern Benefits Group was able to negotiate a 2% rate decrease for the Dental Benefit plan and lock in the decreased rates for two years.
- The Life and Disability plans that we structured through one of our preferred insurance vendors reduced the overall costs by over 20%, and the client was able streamline their administration with one carrier - simplifying both the billing and claims process.
In addition, the client was able to offer Long-Term Disability insurance to their hourly employees for the first time. Up to this point, the hourly employees only received Short-Term Disability coverage. Voluntary Optional Life options were also introduced to all of their employees, and over 40% of the employee population signed up thanks to a strong communication program.
Eastern Benefits Group Offers Client Increased Services and Saves The Firm $50,000!
The Client:
Financial Services headquartered in Southeastern Massachusetts . They have locations in Texas , California , Illinois , and Alabama and employ more than 150 people.
The Challenge:
The client had always purchased their employee benefits through Professional Employment Organizations (PEO's), who also provided human resources support. The
PEO model no longer proved cost effective for the group and was unable to support its growth and diverse needs.
Eastern Benefits Group began working with them in June to prepare for the separation from the PEO model that upcoming January. Their objective was to offer similar benefit options to their employees without increasing the costs of the overall benefits/administration/human resources program.
The Results:
Eastern Benefits Group teamed with its strategic human resources partner, Insight Performance, to offer a comprehensive employee benefits and human resources solution. Eastern Benefits Group designed a benefits package that matched the benefits that had been offered to the employees through the PEO. Coverage offerings included HMO and PPO Health plans, Dental Benefits, Life, AD & D, Long-Term Disability, Short-Term Disability, Vision, Optional Life Insurance, and 401k.
In addition, Insight Performance provided full human resources services -ensuring all compliance requirements were addressed - and hands-on resolution of human resources related issues.
The client was able to save over $50,000 in transitioning from the PEO model. Eastern Benefits Group and Insight Performance worked with the group to ensure that all of the benefits, services and resources that had been available through the PEO, would be provided at an even higher level of service through Eastern Benefits and Insight.
The benefit programs were carefully structured to meet the geographically diverse needs of their employee population. In addition, Eastern Benefits Group conducted benefit meetings for all locations and assisted with the enrollment of each employee.
Eastern Benefits Group continues to provide technical and administrative assistance on an ongoing basis to the group's benefits manager.