After being spun off from a fortune 50 company, this new organization with 2,000 employees struggled to create procurement protocols that would result in a cost-efficient health benefits plan.
As a result, management faced a proposed $1.5 million increase in its health care plan which represented a sizable, financial burden for the company since it did not want to shift additional costs to employees.
Risk International Benefits Advisors (RIBA) challenged the client’s nationally recognized management consultant who believed the increase was appropriate and utilized its Check 173™ diagnostic tool to identify and eliminate areas of wasteful spending and redundant costs. In addition, the team deployed its Benefits Advisory Services to help management establish guidelines and processes for objectively evaluating its overall plan and individual vendor arrangements going forward.
By renegotiating terms and vendor arrangements to effectively eliminate waste and excessive costs, RIBA saved the client $5+ million in benefits plan costs without compromising coverage or shifting an additional financial burden to employees. The client also now has an effective strategy in place for evaluating its benefits plan on an ongoing basis to continue optimizing its benefits spend.