Discover how this employer turned a cost crisis into an opportunity - adding benefits while reducing employee premiums from an innovative market solution.
Key Results
The Challenge
Stonehill, a Dubuque-based care facility, faced a benefits crisis that many employers will recognize. Their well-intentioned "rich" health plan had become a financial liability. With costs soaring $5,000 per member above benchmarks and only half of the employees participating, Stonehill stared down a staggering 26% renewal increase. They needed a solution that could cut costs without sacrificing quality care for their staff.
Why They Need Change
Projected 26% renewal increase
Consistent annual double-digit premium hikes
A first dollar HRA plan driving higher-than-average utilization
Per-member-per-year costs $5,000 above industry benchmarks
Lower participation rates coupled with above-average consumption
The Cottingham & Butler Approach
Strategic Cost AnalysisÂ
Rather than just seeking lower rates, we analyze total program value and market opportunities to identify solutions that work for both employer and employees.
Evaluated current plan performance against industry benchmarks
Analyzed employee utilization and participation trends
Identified opportunities to enhance value while reducing costs
Innovative Market SolutionÂ
Our deep understanding of individual market dynamics allows us to develop creative funding approaches that maximize value across diverse employee populations.
Reduced employee premiums by 70%
Achieved 80% adoption of Gold-level plans
Delivered 7% savings to employer's budget
Strategic Reinvestment Planning
By aligning cost savings with workforce needs, we create opportunities to strengthen recruitment, retention, and employee satisfaction through strategic benefit enhancements.
Implemented new company-paid short-term disability program
Added telehealth services across workforce
Increased overall plan participation while reducing costs
What is ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees tax-free for individual health insurance and qualified medical expenses. It offers flexibility, potential cost savings, and increased choice in health coverage for both employers and employees.
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Ideal For Organizations With:
Low health plan participation
Unpredictable renewals
Diverse workforce needs
Multiple locations
Senior care, retail, or hospitality focus
Desire for cost stability
Ready to revolutionize your HR processes? Contact us today to begin your journey!