As is the case with many companies, the management team of a 19-state construction company did not have definitive data regarding what it paid for its company’s health benefits, what services it was promised and what services were actually being provided by its long-time broker.
It only knew that costs were increasing, employees were unhappy and there had to be a smarter way to manage its growing benefits plan.
Risk International Benefits Advisors (RIBA) approached the problem by first conducting an Impact Analysis, which is a comprehensive needs analysis and broker evaluation. Through the formal analysis process, the team identified those services needed by employees vs. those considered non-essential. It further outlined costs paid for specific services, flagging those that were out of line with the market. RIBA then helped the client to identify options that were more in line with its employees’ needs and assigned an appropriate fee structure for those services. It also created a matrix that allowed the in-house benefits team to efficiently assess broker performance year-after-year.
By removing unnecessary services from the plan and renegotiating service fees, RIBA reduced the client’s broker fees by 50%, netting more than $160,000 in cost savings in the first year alone. The new program additionally increased productivity in the company’s benefits department by freeing up staff time to manage what had been an unwieldy and excessively costly program.