Case Study: Specialty Food Retailer
A specialty food retailer in New Jersey with 90 employees on their healthcare plan was facing a 16% increase in cost. This represented the third consecutive year of double digit increases.
The company was surprised at the increase given the fact that over the past few years they had raised the employee deductible significantly.
They requested information from their current carrier as well as their broker for the reasoning behind the increase.
Their request for information was denied due to the fact that they were in a fully insured plan and under 100 employees.
The company engaged Andus Health Benefits to assess the issues they were faced with as well as ways to mitigate their cost increase.
Andus, being very familiar with the challenges the company was facing, immediately moved to implement the Andus Purchasing Model.
Below represents a statistical summary of the savings that the Andus Model has delivered.
The company also has been able to enrich their benefit plan as a result of the data driven approach that Andus has delivered to them.
2016-2017 Fully Insured Plan Renewal: $667,524
- $667, 524 represents client’s renewal cost for existing insurance plan
- Client chose not to renew existing fully insured plan
- Andus model was implemented to replace existing fully insured plan
2016-2017 Andus Partially Self-Funded Model: $490,688 (completed plan year)
- Savings of $176,836 under Andus Model (26% decrease in cost)
2017-2018 Andus Partially Self-Funded Model: $577,835
- 30% increase in enrollment
- $89,689 in savings compared to their 2016-2017 fully insured renewal
Total Two Year Savings with Andus Health Benefits: $266,525