Minimizing Cost, Preserving Quality with a Consumer-Driven Healthcare Plan

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An equipment dealer with twenty-five branches in nine states had two traditional medical plans and one HSA plan. Unfortunately, the company’s non integrated, partially self-funded medical plan was demonstrative of a misalignment of economic objectives between the employer and employees.


Over several years, Alera Group implemented a full replacement CDHP, maintaining the same economic value of the original benefits while also establishing a fully integrated, partially self-funded medical program with substantially better network discounts. The company also implemented incentive-based biometric screenings and online heath assessments for employees and spouses with employee participation exceeding 85%. The Alera Group team conducted health screenings to determine important areas of focus, leading to an employee cost-incentive wellness program for employees that met regularly with a health coach and maintained healthy levels of cholesterol, glucose, blood pressure or waist circumference.


The employees saw no decrease in their health plan benefits for five years and saw an aggregate 4% decrease in employee contributions during the same time period. Cumulative plan costs decreased by 5.9% for 5 years compared to the Milliman national median trend increase of 37.3% for the same period. Most importantly, the number of at-risk health plan members decreased by more than 16%.


Only 12% of businesses are happy with their current levels of employee engagement – offering effective benefits is a great way to join these select few employers in facilitating a positive company culture!