Axion Saves Company Over $3.5 Million Over a Five Year Period Including a 0% Medical Renewal in Year One
- go Industry: A private educational institution headquartered in the suburbs of Chicago
- Amount of employees: 400 employees
- go to link Type of insurance: Self-funded group health & dental, life insurance, disability
- Valued client since: 2011
source site This 400-employee educational institution was faced with rising medical plan costs. In 2011, the group had a Self-Funded PPO and Fully Insured HMO that was averaging $13,526 PEPY. In 2012, they had a projected annual renewal increase of 12%, or $612,000. Facing unsustainable increases, the group needed to take action quickly to mitigate out of control cost increases.
go here Innovative plan design was key. Axion performed an analysis of the PPO and HMO plans, which resulted in a redesign of the funding. The group also added an HDHP with employer contributions for the first time. A wellness program was launched in the fall of 2012. Prescription copays were changed on the PPO plan in order to drive generic drug utilization and lower plan costs. Group Life and Long-Term Disability were marketed to all major insurers, and we increased the benefit age reduction from 70 to 75. The dental plan design was optimized.
In Year 1, Axion was able to realize a 0% increase in medical costs. The per employee per year cost annual increases have averaged 1.2% since 2012. PPO generic utilization increased from 49.6% in 2011 to 82.8% in 2016, a 67% increase. The plan continues to experience superior performance. When compared to an industry average 8% medical trend, the group was able to save http://www.sunflower.edu.vn/?ghostwriter-services-us $3,785,809 over 5 years. Instead of a 12% ancillary increase, Axion was able to implement a new carrier, resulting in an 8% decrease in costs with a 24 month rate guarantee. The dental plan redesign resulted in an 11.6% cost savings in Year 1.