A Fortune 500 client with 10,000 employees decided to examine a broad range of alternate benefit strategies to reinforce its strong bond with its people; increase employee satisfaction; manage the health status of the covered population; and better control costs associated with these programs. Cambridge Advisory Group was engaged to help in this process.

A study of employment data found significant turnover in the first three years of employment. Though below industry standards, the turnover rate was a substantial risk management consideration and reflected these employees' perceived minimal value for the rich benefit plan available to them.

The client, working with Cambridge Advisory Group, redesigned the existing benefit plan to compensate for costs associated with this early stage turnover trend. Employees with less than three years of service received a reduced - yet market competitive - benefit plan. We also implemented an appropriate waiting period and contribution structure.

Employees with more than three years of service also received a redesigned set of plans. Contribution structure was varied among plan options depending upon employees' willingness to participate in proactive wellness programs including annual health risk appraisals. Our goal was to avoid and manage large claim situations which disproportionately drove healthcare costs. In only its second year, our client has seen healthcare costs increase less than 6% annually per covered participant and 4% annual per eligible participant.

In a continuing effort to manage its health status, risk and costs, we suggested that the client begin integrating data and functions among its health plans, group disability plans, workers' compensation and EAP. The long-term strategy is to hire the services of an advocate representative to help employees manage their health and related benefit programs. To date, this approach improved employee satisfaction, quality of care and service, and managed cost and risk.