Axion Provides Hands-On Approach to Cost Savings
- Industry: A financial services company, headquartered in New Jersey with offices across the U.S.
- Amount of employees: 200 employees
- Type of insurance: Employee Benefits (medical, dental, life insurance, disability and vision)
- Valued client since: 2009
The client was looking for greater value from their broker relationship and needed better advice on plan design ideas and compliance. The client did not have a wellness program in place nor did they have an employee assistance program and was paying for COBRA administration.
Through a client referral, Axion began to work with the client by conducting an audit of the inefficiencies of the current plan. Axion analyzed healthcare costs, looked for areas where those costs could be reduced and then shopped around for lower-cost opportunities. After a review of multiple insurance carriers, it was determined that the most cost effective medical plan solution was a one-plan design – an EPO with BlueCross BlueShield. Moreover, in 2015, without changing the dental insurance provider or the benefits, Axion recommended a self-funded dental plan which has lowered costs considerably from the prior year.
In addition to designing a more cost-effective medical and dental plans, Axion also implemented a wellness program. The program focused on preventive care and offering annual biometric screenings, individuals are incentivized with lower premiums when they participate.
Lastly, Axion implemented additional complimentary services such as their employee assistance program (EAP) which was previously being paid for by the client.
Axion saved the client money throughout the different elements of their employee benefits package:
- Medical: Premiums increased an average of only 1.3% each year since 2010, far less than the industry average of 7% per year.
- Dental: Changing to a self-funded plan saving the client over 28k a year, a reduction of 30% compared to the 2014 costs.
- Group Life Insurance: Rates continue to decrease over six renewals, having already dropped 21% overall in that time.
- Disability: The client saw a 25% drop in rates over six-year period.
Wellness Program: 90% of the employees participated in the wellness program biometric screenings.