International Benefits Plan



Our International client maintains healthcare and AD&D benefits program for expatriate employees who retire or leave the company. The program covers approximately 1,000 former employees and 10,000 active employees; plan sponsor and has over 75,000 employees in over 80 countries. The Former employees covered by the plan reside worldwide

The Plan is financed partly by contributions made by participants while actively employed, partly by premiums after termination of employment and partly by company contributions.

The Business Challenge

  1. Plan sponsor had developed a funding model to finance the benefits under this plan and actual funding had strayed from the model
  2. Per capita healthcare claims under the plan had been increasing at about 7% per year
  3. Adequate due diligence on program design and funding was required

The Touchstone Solution

  • Plan claims and expenses were thoroughly reviewed for a three-year period
  • Claims and expenses were compared to premiums and active contributions for the same period
  • Records of the insurer and TPA were reviewed for accuracy
  • A ten-year actuarial projection was completed to determine ongoing solvency of funding model
  • Viability of various plan design and funding changes were analyzed


  • Upon review, discovered that service level was questionable and data was inconsistent between TPA and insurer
  • TPA claims overpayment of just under $400,000 was discovered and recovered
  • Benefits were improved to respond to non-indexed annual plan maximums
  • Revised contribution schedule during active employment was created to return to funding model
  • TPA and insurer improved service level and responsiveness
  • TPA and insurer are working together to ensure data is consistent going forward


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