Issue
Client was experiencing high employee health insurance claims along with hidden overcharging from insurance carriers, pharmacy organizations, and hospitals. Like many restaurant organizations, profit margins were shrinking resulting in a full assessment of all reasonable cost cutting measures while not reducing benefits for members.
Solution
- CBIZ helped the client identify, design, implement, and administer a revised health and benefits strategy which included:
- Transitioned from an overpriced national health network to an “open network” known as Reference Based Pricing.
- Moved to a more transparent Pharmacy Benefit Manager (PBM) that returned all rebates to the company, delivered improved drug pricing, and enabled certain drugs to be sourced directly from the manufacture based upon assistance programs and international purchasing
- Replaced the traditional call center customer service with a white glove advocacy program staffed by medical professionals for all employee support, guidance, and pre-certification/prior authorization.
- Partnered with a reinsurance carrier for stop loss that aligned with the client’s cost-control measures and was priced accordingly.
Outcome
Client Experienced:
- Achieved $6.5 million in total annual savings or 28% reduction in total spend
- Improved employee experience, with Net Promoter Score rising from 16 to 77
| Company Information | |
|---|---|
| Industry | National Restaurant |
| Entity Type | Private Company |
| Number of Employees | 2,000+ |
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