The Challenge
A business with common ownership across six different entities came to DSG with a serious problem. Each entity operated with its own separate health plan, creating a web of unnecessary costs and administrative headaches.
Why was it set up this way? Simple – their previous broker took the path of least resistance. Maintaining separate plans was easier for the broker and generated more commission income. Meanwhile, the client suffered the consequences.
The Hidden Costs
This fragmented approach created three major issues:
- Inflated Premiums: Instead of leveraging their combined employee base for better rates, they were paying premium rates on smaller groups
- Administrative Nightmare: HR staff wasted countless hours managing six different plans, enrollments, and renewals
- Compliance Risks: Each separate plan multiplied their exposure to regulatory issues and potential penalties
Our Straightforward Solution
When they hired DSG, we immediately saw the problem and knew how to fix it. Our approach was direct and effective:
- We aggregated all locations and compiled plan data to create a unified picture
- We approached carriers with their total employee count as one cohesive group
- We maintained location-based tracking for accurate cost allocation while eliminating redundant plans
The Results
The benefits of this restructuring were immediate and substantial:
- Nearly $100,000 in annual savings
- Drastically reduced administrative burden
- Simplified compliance management
- Improved employee experience with consistent benefits
The Real Lesson
Your broker should be working for you, not for themselves. The previous broker maintained a needlessly costly system because it was profitable for them – not because it served the client.
At DSG, we base our compensation on services delivered, not on maintaining inefficient systems that boost our commission. We put our fees at risk because we’re confident in our ability to deliver results.
If your broker isn’t actively looking for ways to save you money and simplify your benefits administration, you’re likely leaving significant savings on the table.
DSG Benefits Group partners with employers to provide straightforward, transparent employee benefits solutions. We bring modern thinking and sustainable approaches that control costs and eliminate the waste built into traditional broker arrangements.