An Electrical Cooperative in Northern Colorado discovered that there was a better way to provide health plan to their employees than the traditional program that they had had for years. The group had been participating in a nationwide Association Plan which was fully insured through a major insurance company. They thought that because they were in such a large pool which had members from coast-to-coast, that they were in the best possible financial position.
It turns out that we were able to have an initial telephone conversation, followed up by a webinar. You can watch the SAME RECORDED WEBINAR HERE. They were so intrigued by it that they wanted to obtain a quote.
The Association plan wasn’t able to provide any medical or prescription claims data (even though the plan had thousands of members) but we were still able to obtain the necessary information with which to get a quote. The results and the savings were so compelling that they had to learn more about the new program.
The group has a very generous plan of benefits for employees and their Association costs were $18,223 per employee per year. The new plan dropped the cost to $13,953 per employee per year for savings of $4,270 per employee or > 23% savings.
Because the new program is partially self-funded, we were able to exactly and precisely duplicate their current plan of benefits. This was very important to them because they wanted to make the change with minimal effects on their employees. In addition, the group will be provided monthly claims experience with which to manage their plan and fulfill their fiduciary responsibilities.
The rollout of the program went very well even considering the pandemic. We were able to conduct several Zoom meetings with the same slides we would have presented in person. Employees were able to watch the meetings from their home or from their offices, and we recorded it for future employees.
The new plan enables employees to go to any provider they want to, as they are not confined to a PPO network. We also included a specialty drug program whereby members can get high-end prescriptions at no cost to the plan or the member.
Lastly, we were able to lower their costs on their dental and vision coverage. All in all, it’s the same benefit package they had with the Association but at a much lower cost.