A publically traded communications company with 15,000 employees retained us to redesign its then existing “onesize fits all” medical plan. The program utilized a single vendor and funding arrangement for its fifteen subsidiariries, which operates in over 30 states. The only choices available to plan participants were around product (PPO, POS, and EPO) and cost sharing (co-pays, coinsurance and contributions).

A review of recruitment, retention and employee satisfaction data found a medical plan which was a deterrent to corporate objectives around hiring, and retaining needed talent. At the same time an analysis of morbidity, disability and plan utilization data found a risk spread better served by a mix of vendors, plan designs, contribution strategies and funding arrangements based on the subsidiary, its size, and/or the geographic area, where participants were located.

As a result of changing its medical plan approach, the client has outperformed health plan market trend by over 30% (as compared to previous experience, which was at or above normal trend), improved cost predictability (within 2% of budget) and dramatically increased employee satisfaction by over 20% - according to employee satisfaction survey information.

It should be noted that in addition to its comprehensive redesign, the client undertook an enhanced communication program, which included development of a comprehensive compensation statement. This customized piece included such items as direct pay, health and welfare, retirement and paid-time off. It was the result of integrating multiple data sets and systems and successfully increased the known value of plans to their participants.