Technology Group Case Study

The Challenge

A manufacturer with 120 employees located in Exton, PA, was facing a $700K increase from their current insurance carrier.  This would have marked the 5th consecutive year the company faced a double-digit increase. 

The company felt totally helpless at the prospect of having to inform their valued employees that their share of healthcare costs would again be increasing. 

Furthermore, the new plan would include a higher deductible, meaning the plan was not only more expensive, but the benefits would be worse.

The Solution

After spending many years with a leading national broker, the company made the decision to partner with Andus, who reassured them that the problem they were facing was very common and that the industry leading Andues purchasing model could serve as a long-term solution.

Andus began by helping the group interpret the misleading data that was being provided to them by their current broker and carrier.  

It was determined, as is often the case, that a very small percentage of the employee population was driving the majority of the plan costs.

In fact, it was discovered that there was one prescription drug that cost hundreds of thousands of dollars annually.

The company, through no fault of their own, would continually react to increases by implementing negative plan design changes.

The Results

With the guidance of Andus and their unique partially self-funded purchasing model with Rx strategies, the group’s plan cost in year one totaled $1.078 million versus the former fully insured plan cost of $1.348 million, saving nearly $300K.

The Continuous Impact

The annual costs in year two and three were $913K and $1.2M, respectively. Had the group stayed the course and continued to negatively react with plan design changes to combat increases, they surely would have been spending in excess of $2M. Keeping contributions level has been incredibly well received by the employees. The group now receives from Andus custom monthly reporting and forecasting, giving them more clarity and control along with a greater ability to accurately budget their annual healthcare spend.

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