Client: Full-service design & build commercial contractor, specializing in financial institutions,
including banks and credit unions. Providing start-to-finish construction services, from
conception and design through building, furnishing and maintenance after completion.
Needs: Strategies to reduce cost on their $118,420+ annual premium group medical plan.
Plan: Fully Insured PPO
Client is a closely held business that has over 25 employees and is working hard to thrive in the
competitive economy. The rising cost of insurance specifically group medical had been a source of
concern for the owners. While providing benefits was important, the annual 15%+ rate increases were
putting pressure on the bottom line. To no avail, they had tried conventional strategies such as; reducing
benefits and shifting cost to the employees.
After a review of the plan data and online medical applications from the employer, Haughn & Associates
was able to implement a fully-Insured MEWA plan from The Associated Builders and Contractors plan
with United Healthcare. Haughn & Associates was able to offer a 17-month rate guarantee and 3
medical plan options allowing the employer to offer both lower cost plans and lower deductible plans.
By setting up employee medical plan choice, the owner would have the opportunity to establish a
defined contribution approach with an established employer contribution.
In addition to avoiding a 24% renewal increase or $28,421, Haughn & Associates was able to help drive
additional savings for the company with rates that were -$7,989 lower than in force rates and a 17-
month rate guarantee. Because the company joined a large group of companies the claim risk spreads
and results in lower premium and more predictable renewal increase because of the larger group of
companies. While many employers continue to face double digit increases in the traditional market, the
client’s cost increased by +$338.00 over 3 years and 5 months.
First year premium savings $36,410 on $118,420 in annual medical premium