$323K Premium Reduction Achieved
- Cottingham & Butler
- Oct 14
- 1 min read
From a surprising 52% increase to just 4.7% - this Chicago suburbs manufacturing company avoided over $323,000 in additional premiums while removing $1.5+ million in ongoing claims through strategic workforce planning and innovative benefit solutions.
The Situation
A Chicago suburbs manufacturing company with 183 eligible employees faced a 52% renewal increase, translating to over $323,000 in additional annual premiums. This stemmed from an aging workforce with multiple high-dollar claims creating unsustainable cost pressures.
With limited resources and a workforce heavily concentrated in older age demographics, traditional cost-management approaches were insufficient when addressing this challenge.
Key Results
52% to 4.7% Reduction
Transformed large renewal increase into manageable growth while maintaining coverage quality.
$1.5M Reduction in Claim Exposure
Reduced large claimant exposure through participant education on alternative plan options - providing improved coverage.
Win-Win Situations
Implemented best-in-class Government Assistance Program resources to educate employees eligible for coverages like Medicare on which options helped reduce their out-of-pocket and premium costs the most.
Why They Needed Change
Premium Increase: 52% increase in medical premiums threatened organizational financial stability with over $323K in additional annual costs
Aging Workforce: 3 largest claimants over age 60, 2 over 65, with 20 total members over 65 driving unsustainable utilization
Large Claims Concentration: 8 members hit 50% of their specific deductible, accumulating $1.1M in paid claims with 4 exceeding $90K specific limits
Limited Traditional Options: Standard cost-containment measures insufficient for addressing concentrated high-dollar claim exposure