A Health Plan Overhaul
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.
- Business acquisition required workforce and benefits integration
- Active medical costs had been trending at unacceptable levels for a number of years
- Retiree medical claims costs had been stable but SFAS # 106 costs were volatile
- 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
- 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.