|Shift to Self-Funding Saves Health Insurance Costs - LSGIP Negotiates with Union to Strike Deal
A prominent Automotive Supplier had a fully insured community-rated plan that was averaging an annual increase of 15% over three years. The company thought self-funding the plan might be a good option. However, they were not certain of their risks, their employees’ health profile or how the union would react to a change in carrier and plan design.
LSGIP worked with the union to negotiate a mid-contract plan change, coordinated a survey to determine the group’s health profile, and conducted an RFP to find a viable offering.
As a result, the auto supplier was able to lower their annual cost by 49% while also reducing employee contributions.