$450,000+ Saved Through Strategic Risk Transfer Solutions
- Cottingham & Butler
- Oct 14
- 1 min read
What began as a 42% premium increase transformed into substantial savings through innovative medical treatments, strategic workforce transitions, and risk management. This transformation delivered over $450,000 in total impact while maintaining employee satisfaction.
The Situation
An Illinois manufacturing company with 196 enrolled employees faced escalating healthcare costs driven by an aging workforce and concentrated high-dollar claims. The organization needed immediate solutions to transfer risk and implement cost-reduction strategies.
Like many manufacturers with tenured workforces, they confronted demographic-driven utilization increases and catastrophic claims concentration that threatened long-term plan sustainability.
Key Wins
$93,000 in Unnecessary Surgery Avoidance
Implemented innovative treatment plan to help employees with musculoskeletal problems avoid the expensive surgeries and long recovery times.
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.
$450K Overall Savings
Through education of employees eligible for alternative coverages, and implementation of innovative treatment plans for outpatient surgeries.
Why They Needed Change
Increase in Claims: Overall net claims were up 37%from prior plan year, with gross cost per employee jumping 42%, creating unsustainable financial pressure.
Aging Workforce Demographics: The risk profile of the group projected their claims experience to be 30%higher than industry benchmarks – driven by an older, male-dominated demographic.
Catastrophic Claims Concentration: 17 members hit 50% of their $65K specific deductible, with 8 exceeding limits, resulting in $1,265,364 total exposure.
Limited Traditional Solutions: Standard cost-containment measures insufficient to address magnitude of demographic and claims concentration challenges.