Imagine the possibility of saving tens of thousands of dollars without changing your carrier or disrupting your employees’ benefits. This isn’t just a hypothetical—it’s a reality that one of our clients recently experienced.
Employers with under 100 employees often find themselves in a difficult position. They’re large enough to require robust health benefits but small enough that they feel limited in their options. Premiums keep rising, and plan designs often seem set in stone, leaving little room for maneuverability. This scenario leads many to believe that significant savings or improvements are out of reach without making major sacrifices.
We recently worked with a client in this exact situation. They were a fully-insured employer with 60 employees, facing yet another year of rising premiums. They had been with the same carrier for years, and the thought of changing carriers or plan designs seemed daunting—after all, any disruption in employee benefits could lead to dissatisfaction and decreased morale.
However, we knew there was a better solution. By moving the client to a Blue Cross Blue Shield (BCBS) level-funding health insurance program, we were able to achieve remarkable results. What made this solution particularly effective was that it didn’t require any changes to the existing carrier or plan design. The transition was seamless, and employees experienced no disruption in their coverage.
The Results: $75,000 in Annual Savings
The outcome of this strategic move was a substantial $75,000 in annual savings for the employer. This was achieved without compromising the quality of the benefits offered or altering the plan structure that employees had come to rely on. The key to this success was leveraging the level-funding model, which combines the cost predictability of a fully-insured plan with the potential savings of a self-funded plan.
Level-funding is an approach that can offer financial advantages for mid-sized employers. It operates similarly to a traditional fully-insured plan, where the employer pays a fixed monthly premium. However, if claims are lower than expected, the employer may receive a portion of the surplus at the end of the plan year. This not only helps control costs but also creates an incentive for both the employer and employees to manage healthcare expenses more effectively.
No Disruption, Just Results
One of the most compelling aspects of this transition was the lack of disruption to the employees. Often, employers fear that making changes to their health benefits will lead to confusion, frustration, or a decline in the quality of care. In this case, the employees continued to enjoy the same benefits they had before, without even noticing the behind-the-scenes adjustments that led to the savings.
How We Can Help You Achieve the Same Results
At DSG Benefits, our mission is to align our clients’ goals with the best possible outcomes. We understand that every employer’s situation is unique, and we approach each client with a customized strategy designed to meet their specific needs. Whether you’re fully-insured, partially self-insured, or exploring alternative funding arrangements, our team has the expertise to guide you through the complexities of employee benefits.
This case study is just one example of how we help our clients achieve savings while maintaining—and even enhancing—their employee benefits. By leveraging the right strategies, employers can reduce their health plan costs significantly without the need for disruptive changes. The result is less stress, more time, and peace of mind knowing that you’re providing the best possible benefits for your employees.