CASE STUDY #1 – Michigan Manufacturing Firm with 150 Employees
Challenge: Workers were offered a high deductible health plan (HDHP) along with a Health Saving Account (HSA). Employees were urged to put away monies to cover deductibles and cost sharing expenses. However, the company was facing poor employee participation and employee morale was low.
Solution: At renewal, the Employer offered a second plan option for employees: a HDHP with Doctor’s Office Visit and RX copays PLUS several GAP insurance plan options employees could “pick and purchase” to fill in high deductibles and cost sharing expenses.
Result: Enrollment response was overwhelming with the new Bronze/Group GAP plan, that the following year, the employer dropped the HSA plan and kept the HDHP with Doctors office visit and RX copays and GAP plan offerings.
CASE STUDY #2 – Fast Food Restaurant in Illinois with 300 employees
Challenge: In 2015, as a requirement of the Affordable Care Act (ACA), this Employer offered a HDHP “Bronze” plan to meet minimum ACA requirements. As a result of the high deductibles, there was poor employee participation and employee retention became a concern. Good employees were leaving to go to other area employers.
Solution: In 2016, the Employer offered employees a HDHP with Doctors office visit and RX copays and choice of several GAP insurance plans to reduce workers out of pocket costs.
Result: Employee participation has increased and the Employer has had several ex-employees return as a result. Their employee turnover was greatly reduced, and management points to the new health plan innovation as the primary reason.
CASE STUDY #3 – County Government Tennessee
Challenge: This county government saw an 18% increase in its health plan renewal. The County Executive reached out to the Benefits Broker for new ideas.
Solution: The County took advantage of ACA and offered all employees a HDHP with Doctors’ Visit and RX copays plus a small amount of GAP deductible insurance coverage to all employees to match their old health plan.
They then offered employees several additional GAP options employees could “pick and purchase” to further lower their deductibles and cost sharing.
Result: These actions eliminated the 18% renewal increase. Employee coverage was identical to the old plan plus employees were offered more benefit options than before.
CASE STUDY #4 – National Employer With 8,000 Employees
Challenge: The Employer was concerned with the pending “Cadillac Tax” coming in 2020. Their health plans were coming close to the tax limits across the country, especially in high cost urban areas.
Solution: The employer offered an additional plan offering to its nationwide workforce, an HDHP with Doctor’s office visit and RX copays. This immediately dropped the employer’s health plan costs to well below Cadillac tax levels. Next, the employer offered several GAP insurance plan options to lower employees out of pocket expenses. GAP is an “excepted” benefit and DOES NOT enter the Cadillac Tax calculation. Employees choosing this HDHP with Doctors visit and RX copays option plus GAP coverage had lower out of pocket costs than the three other plans the Employer continued to offer.
Result: In the first year alone, 25% of employees picked the HDHP with Doctors visit and Rx copay option. The Employer now has its Cadillac Tax solution for the future.