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The trucking industry faced record congestion-related challenges in 2021, with costs reaching a staggering $94.6 billion according to new research from the American Transportation Research Institute (ATRI). This significant increase in congestion costs highlights the growing challenges fleet operators face in maintaining efficient operations. Key Findings This study revealed several concerning trends for the transportation industry: Record-Breaking Delays : Trucking companies experienced 1.27 billion hours of delay—equivalent to 460,000 drivers sitting idle for an entire year Substantial Fuel Waste : Over 6.7 billion gallons of diesel fuel were wasted due to congestion, resulting in $22.3 billion in additional fuel costs Rising Costs Outpace Inflation : From 2016 to 2021, congestion costs increased by 27%, more than double the Consumer Price Index increase of 12.9% during the same period What's Driving the Increase? Several factors contributed to the surge in congestion costs following the pandemic: Economic Growth : 2021 saw the highest GDP growth (5.7%) since 1984 Return to Office : The resumption of commuter traffic as workers returned to the office Increased Freight Demand : Higher consumer spending led to increased trucking volumes Regional Impact The impact of congestion varies significantly by location, with certain states and metropolitan areas bearing the brunt of these costs: Top 5 Most Impacted States: California: $9.0 billion Texas: $7.3 billion Florida: $7.2 billion New York: $4.9 billion Louisiana: $4.2 billion Most Affected Metropolitan Areas: New York City Metro: $5.5 billion Miami Metro: $2.6 billion Chicago Metro: $2.6 billion Philadelphia Metro: $2.1 billion Los Angeles Metro: $1.8 billion Environmental Impact The environmental consequences of these delays are substantial: 69 million metric tons of CO2 emissions from wasted fuel This environmental impact underscores the need for both operational efficiency and sustainability initiatives Looking Forward The federal Infrastructure Investment and Jobs Act of 2021 includes $350 billion for highway investments that could help alleviate these congestion issues. This investment presents an opportunity for strategic infrastructure improvements that could benefit the trucking industry and broader supply chain. Risk Management Implications For fleet operators, these findings emphasize the importance of: Route optimization and planning Fuel management strategies Operating cost control measures Environmental impact consideration Strategic scheduling to avoid peak congestion periods Understanding and adapting to these congestion patterns is crucial for maintaining competitive operations in today's challenging transportation environment. Fleet operators should consider these factors in their risk management and operational planning strategies. For more information about managing your fleet's risks and costs in today's challenging environment, contact your Cottingham & Butler representative.

Every few years, there seems to be an uptick in wellness program-related litigation. While the lawsuits are typically of the class-action variety targeting large, deep pocket companies, the risk is still real enough to motivate any employer sponsoring a wellness rewards program to make sure they’re running those programs as compliantly as possible.   A recent string of lawsuits filed by the Department of Labor (DOL) and private plaintiffs primarily relate to tobacco incentive (or disincentive) programs. Many of these lawsuits allege similar violations under HIPAA’s nondiscrimination rules centered around the Reasonable Alternative Standard (RAS) requirements. While this litigation mostly relates to employers charging a premium surcharge for those employees who use tobacco-related products, similar issues can arise with any nicotine prevention or outcome-based wellness incentive program. This brief alert will discuss the basis of the lawsuits and provide ways to ensure your wellness program is less susceptible to being a civil suit target.   Alleged Failures in Tobacco-related Wellness Programs The following are four of the most common allegations against employers offering tobacco-related wellness programs: Employer offers a tobacco incentive (or assesses a premium surcharge) without offering an RAS . An RAS must be offered to those employees who use tobacco.  Basically, tobacco users must be offered another way to earn the full reward or avoid the full surcharge.  The most common RAS for tobacco-related programs is completion of a tobacco-cessation program. The availability of an RAS is not adequately disclosed or communicated . Written materials describing the terms of outcome-based wellness program and the communication informing a participant of a failure, must include a notice about how that participant may earn the incentive by completing an alternative standard. RAS options, who to contact, and any deadlines for completion must also be included in the notice.  These notices should appear in benefit guides, open enrollment presentations and in the tobacco affidavits, to name a few obvious places. Not recognizing what constitutes completing the RAS . In the case of tobacco related incentives, the employee merely needs to complete the tobacco-cessation program. Requiring the employee to successfully quit tobacco use in order to earn a reward or avoid a surcharge is not considered to be a reasonable alternative standard under the law. Not providing the full incentive if the employee completes the RAS . The employee must receive the full annual incentive (or avoid the full annual surcharge) if they successfully complete the RAS within a reasonable time period. If the employee does not complete the RAS until well into the start of the plan year and the employer has been charging the surcharge in the interim, the employer must refund the surcharge paid to date as well as discontinue the surcharge going forward until the end of the plan year. Under the Affordable Care Act, health plans offer tobacco cessation programs at no cost to participants. Therefore, identifying a RAS for your tobacco incentive wellness program should be a straightforward process. Contact your team at Cottingham & Butler for help in setting up a compliant RAS for your wellness initiatives and gain access additional wellness compliance resources.

As we approach January 1, 2025, the compensation landscape is set to become increasingly complex for employers in Minnesota and Illinois due to new pay transparency laws. Minnesota employers with 30 or more employees must: Include starting salary ranges or fixed rates in all job postings Provide comprehensive benefits information, including specific details about health insurance, retirement plans, and other compensation Cannot inquire about or consider an applicant's past or current pay during the hiring process Ensure all job postings comply with these requirements, whether internal or external Illinois employers with 15 or more employees face similar but distinct requirements: Must disclose pay scales and benefits information in all job postings Required to announce promotion opportunities to current employees within 14 days of any external posting Must maintain detailed records of job postings, pay scales, benefits, and wages for five years Apply these requirements consistently across both internal and external postings This shift extends far beyond Minnesota and Illinois. With states like California, Colorado, and New York already enforcing similar measures, we're seeing a clear national trend toward greater pay transparency. This momentum could potentially lead to federal legislation in the coming years.   " This is a watershed moment for compensation strategy, " notes Matt Shefchick, Cottingham & Butler Total Rewards Consultant. "Organizations that view these changes purely through a compliance lens are missing the bigger picture of how compensation transparency is reshaping talent markets."   The impact on workplace culture will be profound. Even in states without specific laws, employees are increasingly expecting transparency about compensation. Organizations that embrace this shift proactively often find themselves better positioned to:   Strategic Implications for Your Organization These regulatory changes create profound implications for your business strategy and create three immediate challenges:   Cost Management The financial impact of these changes will be significant for most organizations. Many will face difficult decisions between substantial salary increases or complete restructuring of roles and compensation packages. The costs multiply quickly: direct salary adjustments, increased administrative burden, and potential system updates. Some organizations are finding the total price tag could affect their ability to invest in other strategic initiatives.   However, this challenge presents an opportunity to strategically evaluate compensation structures. Forward-thinking organizations are using this moment to develop more sustainable approaches to job classification and total rewards that align with both compliance needs and business objectives.   Shefchik points out: "Many organizations are surprised to find that a strategic review of their compensation structure reveals opportunities for optimization that can help offset the costs of these changes."   Operational Efficiency The operational disruption of these changes shouldn't be underestimated. Reclassifying employees means fundamentally rethinking how work gets done - from basic daily tasks to major project deadlines. Organizations must navigate complex decisions about work assignments, scheduling, and overtime management while maintaining productivity. Many will need significant updates to timekeeping systems and processes.   While these changes are challenging, they create a natural opportunity to modernize workforce management practices. Organizations that plan thoughtfully can use this transition to implement more flexible work arrangements and streamline procedures.     Talent Strategy Employers face serious workforce challenges with these changes. Reclassifying long-term exempt employees to non-exempt status may trigger morale issues, regardless of the potential for increased total compensation through overtime. The transparency requirements may expose uncomfortable pay disparities and trigger difficult conversations about compensation equity.   However, organizations that approach these changes strategically can strengthen their position in the market through clear communication and well-designed career paths.   The Risk of Inaction The consequences of non-compliance are severe, including potential agency investigations, civil penalties, back pay requirements, and legal disputes. For FLSA violations, organizations may even face criminal charges. However, the greater risk lies in falling behind in an increasingly competitive talent market where pay transparency is becoming the norm.   "The organizations best positioned for these changes aren't necessarily those with the biggest budgets," says Shefchik. "They're the ones taking a thoughtful, systematic approach to both compliance and communication."   Creating Your Action Plan A successful transition requires careful planning and execution. Employers should begin by thoroughly reviewing current exempt employee classifications and salaries to identify positions requiring changes, while considering broader pay equity implications across the organization.   This foundation enables the development of comprehensive strategies addressing both compliance and operational impacts. Key focus areas include clear employee communications, updated job posting processes, and manager training for sensitive pay discussions. Equally important is establishing robust systems and procedures to ensure ongoing compliance and monitoring.   How Cottingham & Butler Can Help Our Total Rewards Consulting team specializes in helping organizations navigate complex compensation changes. We can help you conduct thorough impact analyses, develop custom compliance strategies, design effective communication and change management plans, and create sustainable compensation frameworks that ensure ongoing compliance.   Let us help you turn these regulatory changes into a strategic advantage. Contact us to schedule a consultation and discuss your specific situation.   Compliance | Cottingham & Butler   ***This information is current as of its posting date of November 1, 2024. FLSA requirements are subject to change and employers must continue to monitor regulatory developments.

Effective Immediately: Federal Salary Threshold Returns to Pre-July 2024 Levels   On November 15, 2024, a federal court in Texas rejected the Department of Labor's (DOL) recent changes to overtime pay rules. This ruling affects employers nationwide and returns overtime salary requirements to their previous levels. Here's what you need to know: The minimum salary for overtime exemption returns to $684 per week ($35,568 per year) The higher salary threshold that started July 1, 2024 is no longer legally valid The increase in the overtime threshold scheduled to become effective on January 1, 2025, will not go into effect The automatic three-year increase provision has been eliminated   Background The Fair Labor Standards Act (FLSA) generally requires employers to pay overtime (time-and-a-half) to employees working more than 40 hours per week. However, certain white-collar workers can be exempt from overtime if they meet three specific requirements: Receive a fixed salary regardless of hours worked ("salary basis test") Perform primarily executive, administrative, or professional duties ("duties test") Earn at least the minimum salary threshold ("salary threshold test")   In April 2024, the DOL issued final regulations raising the white-collar exemption salary threshold. The final rule raised the minimum salary in two steps:  July 1, 2024: $844 per week ($43,888 annually). January 1, 2025: $1,128 per week ($58,656 annually). The rule also increased the “highly compensated employee” (HCE) threshold from $107,432 to $132,964 as of July 1, 2024, and to $151,164 as of January 1, 2025, with automatic updates every three years.   The court ruled on the salary threshold increases set for July 1, 2024, and January 1, 2025, finding that the DOL exceeded its statutory authority by increasing the standard salary level too high and allowing for automatic adjustments every three years, effectively creating a rule based solely on salary rather than job duties as intended by law. The court vacated the salary increase that went into effect in July and the increase set for January, as well as the future automatic salary level increases for employers nationwide. As a result of the decision, the standard salary level for EAPs is now $35,568 and $107,432 for HCEs. Consequently, employees who lost their exempt classification because of the July 1 salary level increase may potentially qualify again for an exemption.   Important Considerations for Employers This ruling significantly impacts how employers determine overtime eligibility for their salaried employees. The court's decision emphasizes that job duties, not just salary levels, should be the primary factor in determining overtime exemption. Current Actions:  While the July 2024 increase is legally invalid, carefully consider any changes to already-implemented salary adjustments , due to the impact on employee morale if salary increases are reversed. State Requirements:  Several states maintain their own, higher salary thresholds: Alaska, California, Colorado, Maine, New York, Washington. Employers in these states must continue following state requirements. Engage Legal & Compliance Experts:  Consult with your legal and compliance advisors to navigate these complex changes and ensure compliance against the following: Reversing any salary increases made to comply with the July 2024 threshold Making changes to employee classifications Adjusting overtime policies   Looking Ahead The DOL may seek to appeal the lower court’s decision to the Fifth Circuit Court of Appeals. However, with the upcoming change in presidential administration, it is predicted that the DOL would likely abandon any appeal and allow the lower court’s decision to stand. It is unclear whether the new administration will revisit some or all of the rule, repeal it entirely, or perhaps adopt a different formulation. Cottingham & Butler will keep readers apprised of current developments.

In the world of employee benefits, being nice and being wise aren't mutually exclusive—but sometimes they can feel that way. As benefit consultants, we frequently hear HR leaders say, "We trust our employees. Questioning dependent eligibility feels like we don't." This mindset, while commendable, overlooks a crucial truth: sometimes the kindest act is ensuring your benefits program stays strong and sustainable for everyone who truly depends on it.   The Evolution of Benefits Management Today's healthcare landscape is unrecognizable from even a few years ago. With family coverage premiums now averaging $22,463 annually (Kaiser Family Foundation, 2023) - a figure that's risen over 47% in the last decade - organizations face unprecedented challenges in benefits management.   Consider the forces reshaping employer-sponsored healthcare: Medical trend consistently outpacing general inflation Multi-generational workforce with diverse benefit needs Rise of remote work complicating state-by-state coverage Expanding definition of family structures Growing complexity of compliance requirements Increased scrutiny from stop-loss carriers Rising employee expectations for benefit programs   The mounting pressure extends beyond premium costs. Specialty drug costs surge at 15-20% annually, mental health utilization reaches historic highs, and chronic conditions demand increasingly sophisticated management approaches. Meanwhile, healthcare delivery transforms rapidly through telehealth and innovative treatment modalities, all while technology investments in benefits administration become non-negotiable for maintaining program efficiency.   "In this era of rising healthcare costs and complex family structures, strategic benefits management isn't just about controlling costs - it's about ensuring sustainable protection for every eligible participant," explains Taylor Orton, Vice President Employee Benefits at Cottingham & Butler. "Forward-thinking organizations are discovering that eligibility management creates an opportunity to enhance their entire benefits program, often allowing reinvestment of savings into expanded coverage options that better serve their employee population."   Understanding Today's Complex Benefits Environment Modern benefits programs operate in an environment where change is the only constant. Consider how dramatically the American family has transformed: blended families are increasingly common, adult children remain on parents' insurance longer, and the definition of domestic partnership continues to evolve. These demographic shifts create natural friction points in benefits administration, with industry analysis showing 5-15% of dependents on employer-sponsored plans may not meet current eligibility requirements.   The complexity compounds with varied eligibility rules across benefit types, state-specific regulations, court-ordered coverage requirements, and evolving domestic partner benefits. While the financial impact is significant – averaging $3,000 annually per ineligible dependent – the human impact can be far more severe. Consider an employee who discovers their child's coverage lapsed during a medical emergency, or a former spouse facing unexpected bills because their coverage should have terminated months ago.   "Every self-funded employer should conduct an eligibility audit once every 3-5 years," explains Orton. "Not primarily for the financial savings, but to protect both your organization and your employees from potentially devastating uncovered claims. The last thing you want is discovering a dependent isn't eligible during a medical crisis - forcing an impossible choice between absorbing massive costs or leaving a family with crushing medical debt. A proactive audit helps everyone sleep better at night."   Eligibility Management Delivers Significant Impact A recent eligibility audit for a national HVAC/R supplies distributor revealed the power of strategic timing and execution. Despite having existing spousal coverage requirements in place, the audit uncovered substantial opportunity for program optimization: Results at a Glance: 12.3%  of covered spouses were ineligible for benefits 170  ineligible spouses identified $850,000  in projected annual savings Program ROI exceeded 1,000%   Most importantly, the organization could redirect these savings into enhanced employee programs while strengthening their benefits foundation for the future.   A Modern Approach Given these complexities, how can organizations protect both their employees and their benefits investment? A well-designed dependent eligibility audit provides the foundation for long-term program sustainability. Unlike the rigid audits of the past, today's approach focuses on education, support, and proactive management. Working with experienced administrators like SISCO, organizations are discovering that modern eligibility management can be both thorough and protective of employee interests.   "The key to successful eligibility management lies in making it feel like a natural part of the benefits experience," explains Stacy Rauch, Director of Eligibility at SISCO. "When organizations provide the right tools and support, employees actually appreciate the clarity and confidence that comes from knowing their families' coverage is secure."   A strategic eligibility audit does more than verify coverage – it creates opportunities for better benefits education, clearer communication, and improved employee understanding of their valuable benefits package. When implemented thoughtfully, these programs help employees navigate complex eligibility rules while ensuring their loved ones maintain appropriate coverage.   Making Eligibility Management Feel Natural While the value of eligibility management is clear, timing can make the difference between a smooth, well-received program and one that creates unnecessary friction. The post-open enrollment period provides an ideal window when employees have already engaged with their benefits and gathered family information. This natural alignment with your benefits cycle creates momentum for a successful verification process.   Program success also depends heavily on having the right partner. A strategic administrator ensures the process feels like a natural extension of your existing benefits program rather than an additional burden. "When organizations partner with experienced administrators for eligibility management, they discover how seamless the process can be," notes Rauch. "Our approach focuses on making the verification process straightforward for employees while removing the administrative burden from HR teams."   The right partner manages all aspects of verification, from coordinating communications and document collection to providing dedicated support for sensitive conversations and complex situations. This comprehensive approach allows HR teams to maintain their strategic focus while ensuring employees receive clear guidance and support throughout the process. Most importantly, it transforms eligibility management from an administrative task into a valuable part of your overall benefits strategy.   The Strategic Advantage While timing optimization creates a strong foundation, forward-thinking organizations recognize that dependent eligibility management serves a broader strategic purpose in today's complex benefits landscape. The stakes have never been higher – or the opportunities greater.   The Department of Labor's heightened focus on plan governance reflects a deeper shift in benefits management expectations. It's no longer enough to simply offer competitive benefits; organizations must demonstrate proper stewardship of these valuable programs. This scrutiny, combined with rising healthcare costs and increasingly complex family structures, creates both challenges and opportunities for benefits leaders. Consider the broader implications: Stop-loss carriers are increasingly scrutinizing dependent eligibility during large claims ERISA fiduciary responsibilities extend beyond basic plan administration State and federal regulations continue expanding coverage requirements Financial reporting demands greater accuracy in benefits accounting   Organizations are discovering that compliance requirements catalyze strategic advantages. Through verification processes, they're building foundations for data-driven decision making that strengthens carrier relationships and supports future program evolution.   From Cost Center to Value Creator The true power of strategic eligibility management extends beyond impressive financial returns. While a typical first-year ROI exceeding 800% captures attention, forward-thinking organizations discover something more fundamental: eligibility management becomes a catalyst for broader benefits evolution. Recent SHRM data shows organizations with robust eligibility programs report 24% lower administrative costs and significantly higher employee satisfaction with benefits communication. As healthcare costs continue rising at twice the rate of wages, strategic eligibility management positions employers to: Enhance core benefits without increasing costs Invest in targeted wellness and preventive programs Respond quickly to emerging workforce needs Build resilient benefits strategies   Organizations often redirect these savings into enhanced mental health coverage, expanded family support programs, and innovative wellness initiatives. With confidence in program integrity, the focus naturally shifts from cost containment to strategic enhancement.   The Strategic Leadership Opportunity For benefits leaders, this evolution in eligibility management presents a unique opportunity. In an era where nearly 70% of employees cite benefits as a key retention factor, the ability to maintain comprehensive, sustainable benefits programs becomes a crucial differentiator.   "A well-executed eligibility management process demonstrates that protecting your benefits program and caring for your people go hand in hand," Rauch emphasizes. "Our role is to ensure a smooth experience that supports both employers and employees through the verification process."   This insight points to perhaps the most important opportunity: the chance to demonstrate modern, thoughtful leadership in an area that directly impacts employee wellbeing. By implementing strategic eligibility management, organizations ensure their benefits investments deliver maximum value for every truly eligible participant while building a foundation for future program enhancements.   In today's complex benefits landscape, that's not just good management—it's strategic leadership that protects both your people and your program's future.   ____________________________________________________________________________________________     Ready to Protect Your Benefits Investment? The path to stronger benefits management starts with understanding your opportunity. Our team of experienced consultants can help you: Evaluate your current eligibility management approach Identify potential areas of opportunity Develop a strategic implementation timeline Create a communication strategy that builds employee trust   Contact our benefits consulting team to explore how strategic eligibility management could strengthen your benefits program while protecting what matters most – your people and your investment in their wellbeing.

Success in the trucking industry requires more than just insurance coverage – it demands a partner who understands the unique challenges of the sector and can deliver value through every business transition. This story demonstrates how the right partnership can drive significant cost savings while also transforming challenges into opportunities.   The Situation A leading trucking company from Kansas with over 400 trucks, began their journey with Cottingham & Butler in 2014. Following a buyout in 2019 and absorption into their new company's program, Cottingham & Butler maintained a crucial role managing their deductible buy-back program for Owner Operators and Independent Contractors. When they underwent another ownership change in 2022, our team learned from their CFO that they were not receiving the comprehensive service they deserved.   Our Approach We took swift action to ensure the organization received the full spectrum of services Cottingham & Butler could offer. Our comprehensive solution included: In-depth claims analytics Detailed collateral analysis Large deductible analysis Extensive safety services What set our partnership apart was creating direct connections between the trucking company and the underwriters on the accounts – giving them a voice to share their story directly with the markets.   The Results Our strategic approach delivered significant impact: Nearly $930,000 in savings during their first year with Cottingham & Butler Substantial cost reduction through effective deductible buy-back program management Prevention of unnecessary financial burden on drivers Appointed as insurance broker in spring 2023   The Outcome Today, this partnership showcases what is possible when industry expertise meets dedicated service. Through every organizational change, Cottingham & Butler's commitment to understanding the client’s unique challenges has built a partnership that delivers real value. It's more than just managing insurance – it's about being a trusted advisor who supports our client's every step of the way. Contact your Cottingham & Butler Representative today.

After facing rising healthcare costs year after year, a large HVAC/R supplies distributor leveraged their partnership with SISCO, our in-house claims management TPA, to implement a strategic solution that would significantly reduce their healthcare spending without compromising employee benefits. The company already had a spousal carveout policy in place to manage costs, but suspected there might be room for improvement. Rather than implementing more restrictive policies or shifting costs to employees, they worked with their trusted claims management partner, SISCO, to conduct a comprehensive spousal eligibility audit - a decision that would prove to be tremendously valuable. Through this straightforward audit process, which required minimal involvement from the company's HR department, SISCO utilized their deep understanding of the company's benefits structure and claims history to identify substantial opportunities for cost reduction while ensuring compliance with existing policies. Our Results For employers looking to manage healthcare costs effectively, eligibility audits represent a powerful tool that can deliver immediate results without creating additional administrative burden. Ready to uncover potential savings in your healthcare plan? Contact our Employee Benefits Consultants to learn how our team can help you implement an eligibility audit for your organization.

In today's fast-paced business environment, creating meaningful workplace relationships is more crucial than ever for employee engagement, retention, and overall organizational success. Yet many leaders struggle to move beyond surface-level interactions. In this engaging session, relationship expert Rob Lawless shares his innovative FRIEND Framework - a simple but powerful approach to building authentic connections in the workplace. Following the tremendous response from our recent seminar series on intentional excellence, we're excited to share this practical tool that transforms how you connect with colleagues, employees, and clients. You'll discover: A structured approach to understanding the whole person beyond their job title Questions that spark meaningful conversations and build trust naturally How to move past awkward small talk to create genuine connections Ways to align professional relationships with personal aspirations and values Watch below to master the conversation framework that's helping leaders build stronger, more engaged teams.

Discover how our innovative pharmacy benefits strategy helped this leading truck dealership achieve dramatic cost savings while improving employee coverage. Key Results The Challenge Rihm Kenworth, the second oldest Kenworth dealership in the country with a 75+ year history, is a well-known entity in Minnesota and across the transportation industry. With approximately 280 employees, Rihm Kenworth partnered with Cottingham & Butler to optimize their benefits strategy and control rising costs. Why They Need Change Benefit costs spiraling upward year after year Specialty drug claims creating unsustainable cost surge Previous provider's rigid plan design limiting options Growth plans hindered by reactive benefits approach The Cottingham & Butler Approach In-Depth Analysis & Strategy Development Utilized our exclusive Pharmacy Toolkit to collect and analyze claims data Pinpointed cost drivers with proprietary Guided Pharmacy Solutions (GPS) process Benchmarked against industry standards to secure competitive edge Strategic Pharmacy Management Developed a tailored strategy, recommending the optimal combination of ControlRX and NaviCareRx programs Aggressive program management cut pharmacy costs by 71%,  reducing per-member per-month (PMPM) spend from $165 to $48 Projected YTD annual savings of ~$500,000 Enhanced Clinical Oversight Applied advanced drug management strategy, reducing specialty drug costs while protecting member access  Maximized patient assistance programs to lower costs for both employer and members  Delivered successful clinical oversight with minimal disruption to member care Network Optimization Maximized carrier relationships to transform regional coverage into nationwide access  Expanded access to care for employees, doubling provider options without increasing costs  Improved employee satisfaction through broader provider choice and improved coverage for out-of-state care "Our collaboration with Cottingham & Butler has been transformative. Not only did we achieve substantial cost savings— nearly half a million dollars in just six months—but we've also significantly improved our employee benefits package. " - Rihm Kenworth Ready to revolutionize your HR processes? Contact us today to begin your journey!

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 Analysis  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 Solution  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.   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!

When traditional healthcare benefits threatened both employee access and company financials, a strategic pivot to ICHRA revolutionized this employer’s approach to benefits. Key Results The Challenge A large, multi-location senior living employer with a diverse workforce faced an impending benefits crisis that threatened their operational stability. Despite these pressing issues, their former broker seemed out of answers. The reference-based pricing model they'd implemented was causing more problems than it solved, leaving the client in dire need of a solution that would provide the care their employees needed without dramatically increasing costs to the already tight margin of the business. Why They Need Change A projected 40% increase in costs if they left their current referenced based pricing arrangement Low health plan enrollment created a high-risk, high-cost pool Employees faced unexpected balance billing and access issues at healthcare providers The small HR team struggled to manage an increasingly complex benefits landscape across multiple locations The Cottingham & Butler Approach Comprehensive Discovery & Analysis Our approach begins with deep financial and workforce analysis to understand the unique challenges of each organization. For this employer, we examined their healthcare landscape across  22 locations, considering their diverse workforce and varying healthcare needs. Uncovered significant cost variations across employee populations  Identified healthcare access challenges impacting employee satisfaction  Assessed market conditions creating opportunity for strategic change   Strategic ICHRA Design We believe in developing solutions that create both immediate impact and long-term stability. Our team leveraged Wisconsin's strong individual market to design a program maximizing value for both the organization and its employees. Created flexible reimbursement structure across 22 locations Expanded from 1 plan design to 93 employee plan options Structured program for predictable long-term renewals   Accelerated Implementation & Support Our implementation strategy prioritizes clear communication and comprehensive support to ensure successful transitions. We developed a focused rollout plan that simplified this complex change for employees. Completed full implementation within 60 days Provided on-site education at key locations Delivered one-on-one enrollment support for all participants 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.   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 Unpredictably high renewal (20%+) Large ongoing claimants that cannot be controlled Ready to revolutionize your HR processes? Contact us today to begin your journey!

Discover how this family-owned manufacturing company transformed their employee benefits strategy with innovative solutions from Cottingham & Butler. Key Results The Challenge As a family-owned manufacturing company with deep Midwest roots, this client exemplifies the American entrepreneurial spirit. As their company grew from a small operation to a thriving enterprise with over 200 employees, so did the complexity of their employee benefits needs.   Facing mounting cost pressures and a desire for more sophisticated benefits solutions, the client turned to Cottingham & Butler for a dramatic turnaround in their benefits strategy. Why They Need Change Escalating benefits costs had doubled in just four years Complex web of multiple vendors creating administrative burden Growth opportunities hindered by reactive benefits approach Need for sophisticated risk management beyond traditional solutions Local service limitations holding back strategic initiatives The Cottingham & Butler Approach Strategic Risk Management Our alternative risk expertise opens new possibilities for organizations ready to take control of their healthcare costs. For this employer, we leveraged our member-owned group stop-loss captive to transform their benefits strategy, creating both immediate savings and long-term stability. Reduced fixed costs by 30% through GuideRe captive implementation Delivered $113,000 in medical benefits savings within first six months Created opportunity for premium returns in favorable years Established predictable long-term cost structure with enhanced protection   Benefits Consolidation & Enhancement By consolidating multiple vendor relationships into a comprehensive package, we created a streamlined program that improved coverage while reducing costs across all benefit lines. Consolidated multiple carriers into single comprehensive solution Generated $44,000 in immediate non-medical benefits savings Implemented three-year rate guarantees across all lines Enhanced coverage with higher guaranteed issue limits and income protections Delivered average $250 annual savings per employee on voluntary benefits   Technology & Administrative Solutions Our dedicated technical expertise transformed complex benefits administration into a strategic advantage. For this client, our specialized tech team created a streamlined, user-friendly system supported by clear employee communications. Secured technology credits to offset HRIS system costs Deployed expert tech support for HRIS system optimization Created single administrative interface for all benefits Developed custom benefits guides and communication materials Increased employee engagement through simplified enrollment process "Cottingham & Butler delivered concrete results from day one. Their approach combines innovative solutions with a deep understanding of our business needs." Ready to revolutionize your HR processes? Contact us today to begin your journey!