A Health Plan Overhaul

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Overview

This Midwest manufacturing company of 1400 active employees and 100 retirees in twenty-one states maintained a comprehensive benefits program for non-union employees, including a self-funded medical plan.

Through Touchstone’s Total Client Analysis a number of challenges were revealed.

  1. Business acquisition required workforce and benefits integration
  2. Active medical costs had been trending at unacceptable levels for a number of years
  3. Retiree medical claims costs had been stable but SFAS # 106 costs were volatile
  4. Our analysis revealed that Administrative simplification was required. Administrative process was unwieldy and inefficient

The Touchstone Solution

  • Several medical options were integrated into one comprehensive design
  • Plan management was marketed to 8 third party administrators (TPAs) and associated medical provider networks through a sophisticated and proprietary Request For Proposal (RFP) process
  • Extensive network data was collected and analyzed as to discounts, access and participant disruption
  • TPA services and associated fees were compared
  • Responders were evaluated using customized scorecards that reflected plan sponsor priorities
  • Two finalists were invited to make a face-to-face presentation before the corporate benefits committee

Successful Results

  • A single TPA was selected for medical plan administration
  • Administrative costs remained fairly stable (maintained a degree of stability)
  • Network discounts improved dramatically
  • Additional TPA services were added at no additional cost
  • Net medical cost is expected to decrease by 9%
  • SFAS #106 expense is expected to decrease by 2%
  • In-house administration has been streamlined and simplified.

We Listen, Analyze, find Solutions and Partner for Action…. That’s the Touchstone Approach.