e invite you to contact us for more success stories. We have plenty, and likely have some closely aligned with your situation. Below are a few examples of recent case study results:
SITUATION A large national health care company sought a multi-year employee benefit strategy. Its primary objectives were to engage consumers in their health and positively impact utilization within the health plan.
ACTION Laurus Strategies developed a three-year strategy for implementing a full-replacement consumer-directed health plan. This included plan design, an aggressive communication campaign and key metrics to measure plan effectiveness.
RESULTS At the end of year three; a retrospective analysis showed :
- Year-over-year trend was 1%, excluding large claims, well below the national average of 8%.
- $11 million in savings was realized by keeping trend at 1%.
- Hospital admissions per 1,000 members decreased 3%, to 8% below norms.
- Average length of hospital stay decreased 4%, to 25% below norms.
- Emergency room visits declined 9%, but is still above norms.
- Pharmacy costs per member fell to 10% below norms.
- Preventive care screenings and wellness visits increased in all categories (e.g.,mammogram screenings increased 5%; cholesterol screenings increased 14%).
- Employee cost share remained flat.
Laurus Strategies also coordinated the development of a Consumer-Directed Health Plan User Group of national employers, now led by this client.
SITUATION In search of best-in-class service, a mid-sized national manufacturing company requested a market analysis of benefit plan administrators.
ACTION Laurus Strategies developed a two-year strategy. During the first year, the following steps were taken:
- A multi-year employee benefit strategy with strategic benefit objectives was developed.
- Historical results and performance were assessed.
- A proprietary financial reporting system was implemented to measure effectiveness of strategy historically and an ongoing basis.
In year two,Laurus Strategies conducted a market analysis to assess best-in-class service opportunities. Requests for proposal were solicited based on these identified objectives: 1) streamline administration; 2) implement managed short-and long-term disability; 3) maximize medical network discounts; 4) improve customer service; 5)improve consumer behavior.
RESULTS After a complete assessment was made, the following results were achieved:
- $2 million in savings through 6 months
- 9% annual savings due to additional network discounts and reduced administrative expenses
- 8% savings within life and disability programs
- Implemented an integrated short- and long-term disability management program
- Implemented 24/7/365 customer service
- Implemented enhanced consumer tools (e.g., Health Risk Assessment; Cost estimators; Health information; etc.)
- Negotiated an aggressive direct hospital contract
- Implemented onsite health risk assessment and biometric screenings with immediate results
- Implemented ongoing communication strategy to improve employee understanding of the plan to impact utilization
SITUATION After making two acquisitions, a Fortune 500 global staffing organization had four different benefit plans, which were supported by three different national plan vendors. The new combined organization needed :
- Financial tracking and budgeting
- Multi-year cost management strategy
- Employee engagement model
- Improved plan offering and delivery platform for temporary employee population
- Cultural and benefit plan integration
- Best practice analysis for technology outsourcing platform
ACTION Laurus Strategies conducted a full assessment of the current benefit programs, the perceived value of those plans and how benefits were communicated to employees. Key findings included significant cost savings potential via improved discounts, integrating the delivery platform and implementing a consumer-directed health plan. All benefits and costs were benchmarked and determined to have gaps in certain areas. It also was determined that benefits provided to temporary employees were not designed appropriately for the population, needed more of a brand and were not cost competitive. Subsequently, the limited benefit program was marketed and a new plan was implemented.
RESULTS The assessment led to significant improvements, including :
- Total hard-dollar cost savings year-over-year of $3 million
- Consolidated vendors and administration for all companies
- Improved network discounts in certain geographic regions
- Implementing a consumer-centric plan design
- Launching a comprehensive communication campaign designed to educate and engage employees
- Redesigning and renegotiating performance guarantees for all vendors
- Completing a national benefit plan survey and aggregating the results
- Redesigning the temporary employee medical plan
- Completing a full Request for Proposal for the limited benefit plan offered to the temporary employee population
- Doubling enrollment in temporary employee medical plan due to improved benefits and reduced cost
