We can decrease our 72% medical renewal rate????

The renewal is a 72% rate increase due to two really large medical claims – totally unfeasible. For an employer in the energy sector during an economic downturn, this was a disaster. They might even need to terminate the benefits plan. They needed a solution – and fast – to reduce the increase and not harm the employees.

But HOW???

We recommended:

  • Increasing their medical plan deductible from $2500 to $5000
  • Adding in a voluntary hospital/critical illness combination plan as well as an off the job accident plan.

This reduced the rate increased to 52%  – still a big number and the employer absorbed it in full.

Since there was no increase to the medical plan cost, employees had room in their own budgets to purchase the hospital/CI plan which would protect them from both the increased out of pocket expense as well as protect their family budgets if they were unable to come to work.

In addition to providing the strategic solution, De Paoli Professional Services also provided onsite enrollment team for group meetings to explain what was changing, how to utilize the new benefits and to provide onsite enrollment assistance.

Participation in these voluntary plans was 63% with many employees choosing both the hospital/CI plan and the accident plan. Ongoing enrollment is running at approximately 50% participation.

Employee morale and satisfaction was maintained.

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