Issue
A private university with 20 athletic programs was facing rising costs and diminishing benefits with its previous broker.
Key challenges included:
- Annual increases in secondary athletic insurance premiums.
- Escalating costs for the international student insurance plan, which failed to deliver on benefits.
- Lack of rate agreements with healthcare providers, leading to higher expenses.
- Unnecessary fees paid to brokers and sub-brokers without receiving any added service.
- Inefficient claims processing, causing delays and administrative burdens.
Rising costs and inefficiencies were straining the department’s budget, limiting resources for student-athletes and creating administrative challenges. These challenges highlighted the need for a strategic and innovative approach to enhance service while reducing costs for the department.
Solution
To address the issues, we initiated a hands-on, collaborative approach, focusing on optimizing coverage, improving support and maximizing cost savings.
Our key strategies included:
- Identifying inefficiencies and providing clear communication and education to the department.
- Eliminating the local broker to work directly with our team, creating a more streamlined and efficient process.
- Transitioning the secondary accident insurance model from a fully insured plan to a self-insured (aggregate) plan for greater cost control.
- Replacing the international student insurance with a new carrier that offered better coverage and value.
- Established rate agreements for physical therapy, setting clear limits on payment amounts per CPT code to manage expenses effectively.
Outcome
Over a 36-month period, the department achieved significant improvements, including:
- Annual savings of 20-25%.
- A more efficient and streamlined plan structure.
- Improved claims handling and faster payment processing.
- Enhanced care and benefits for student-athletes.
With faster claims processing and improved provider agreements, student-athletes received quicker, high-quality care, reducing time away from training and competition.
Through hands-on service, strategic plan adjustments, and negotiated rate agreements, we helped the university lower costs while ensuring long-term financial sustainability. The department has reported high satisfaction with the improved service, transparent reporting, and effective communication.
With a sustainable cost structure and improved support, the department is now well-positioned to continue providing top-tier care for its athletes while maintaining financial stability.
| Company Information | |
|---|---|
| Industry | Higher Education – Athletics |
| Entity Type | Private University |
| Governing Body | NAIA |
| Geographic Footprint | Southeastern United States |
| Student Population | 4,224 |
| Number of Student Athletes | 381 |
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
