Headquartered in Atlanta, a global construction company had more than 10,000 employees and a significant annual healthcare spend that continued to escalate every year.
Despite rising costs, the current plan was failing to meet the growing needs of the company’s employees.
Risk International Benefits Advisors (RIBA) was retained to provide a comprehensive, unbiased evaluation of the company’s antiquated benefits administration system and existing broker agreement to identify areas where costs could be trimmed and services enhanced for the company’s employees.
RIBA utilized the company’s proprietary Pathfinder product to help the client identify billing redundancies and service gaps in its current benefits system. This process further helped the client better understand what services it should be receiving and what alternative resources were available. Using its Impact Analysis tool, RIBA additionally reviewed the existing broker agreement to reveal that the broker was over-charging the client twice what was considered standard and was failing to perform all of the contracted services.
By overhauling the benefits administration system, RIBA saved the client $550,000, which represented 75% of the prior system’s cost, and surpassed management expectations by obtaining more services than were thought possible. RIBA further renegotiated the broker fee structure, aligning it with the services actually being provided and adding employee support services not previously provided, to decrease the broker fee by more than 60%, which represented an additional $250,000 annual savings.