Meet Kathryn. She's a second-generation business owner who's looking to grow and expand her successful baked goods company. She values her team of 100 people and supports them with a group benefits plan.
Kathryn’s team was happy with their existing group benefits plan, which they had for many years, but Richard, Kathryn’s Advisor, thought that there was a better way to look after the health of her employees.
The HR department made it very clear that they were content and that no changes were to be made. Let’s face it, in general people do not like change. Change brings the unexpected.
But Richard stayed persistent. He was doing everything he could to help out her company.
Richard kept saying to Kathryn: "Hey, let me get my group specialist in. We'll take a look at the plan and make sure you're getting what you're paying for."
It took a few tries, but Kathryn finally agreed to sit down with him.
The group specialist that Richard mentioned was our very own, Jeff. He's pretty darn good at explaining complicated plans for businesses.
While Richard and Kathryn chatted, Jeff sat down and reviewed the company's claims experience report. For those unfamiliar with an experience report, it justifies premiums by summarizing the cost of claims made. They aren't easy to read, but with all of Jeff's experience, he could easily handle it.
After a few minutes, Jeff interjected in the conversation and told Kathryn: "If you were with us last year, you would have saved $75,000."
Do you think he got Kathryn's interest?
He sure did!
Kathryn is a smart, savvy business owner.
She isn't cheap, but she knew $75,000 reinvested in her company could do great things, so she decided to hear him out.
Last year, Kathryn had to pay out premiums to provide coverage through their health and dental insurer. Whether her team used the benefits a lot or a little, she paid the dictated premiums. Jeff explained how Blendable could save her money with an Enhanced Health Blend.
Enhanced Health Blends
For employees, an Enhanced Health Blend (EHB) is designed similarly to an insured plan; they can have the exact same coverages.
However, with an insured health benefit, the plan sponsor pays a variety of fees, plus premiums based on potential claims (and any unused is lost). With our Enhanced Health Blends, plan sponsors just pay actual claims plus a modest flat fee. The beauty of this plan is that if usage is low, the cost is low.
It's ideal in times like these where nobody's going to the dentist, seeing a chiropractor, or getting massages. Employees are likely just paying for routine drugs.
In this environment, with a pay-for-what-you-use plan, the cost is almost nothing.
An EHB can be set up any way you like it. You can provide the benefits employees value while minimizing your exposure to high-cost claims.
Maybe it makes sense to give employees 80% coverage, or category limits such as a maximum of $1,000 per family member for dental expenses. The choice is yours.
This type of plan is a fantastic solution for any larger business looking for the most efficient way to pay for their medical expenses.
That's where the savings come in. Kathryn was paying premiums to cover what might be used. Jeff showed her that, last year, if she had paid actual claims plus our fee, she would have saved $75,000. (Because of the pandemic, we're actually on track to saving her company $100,000 this year based on the previous premiums.)
Do you think Kathryn moved ahead with her EHB solution?
You bet she did!
Kathryn’s custom-tailored benefits
In addition to covering health and dental costs, Kathryn wanted an Employee Assistance Program and to continue insured Peace of Mind benefits like Life and Long Term Disability. We were able to provide these benefits and put it all into one nice convenient package for her and her employees.
Kathryn reinvested her savings back into the business and is on the road to great things. In the past year, the company has added more than 60 new employees to the plan with anticipated hires of 400 people in the next five years.
Key Take-Aways
What can we take away from Kathryn's story?
- Cost-savings. Kathryn was able to save money that she then invested back into her business, enabling company growth.
- Convenience. We were able to offer Kathryn the same plan design while providing even more flexible options.
- Retention. Kathryn was able to put the money she saved towards her business, creating new jobs and providing more opportunities for her employees.
This has been a successful change for Kathryn and her company. We can provide your business with an affordable group benefits option that is the perfect mix of flexibility and affordability.
