Case Study - Underutilized Group Benefits Plan

The case below explores a creative solution to an underutilized group benefits plan. As always our role as plan consultants is to bring creative solutions to the table that drive:

• Cost stability for business owners

• Engagement and satisfaction from employees

• Optionality for future plan changes

The Company

• 20-30 Employees, Remote and on-site staff

• Growing workforce located in Ontario

• Distribution Business with Customers and Projects across Canada

Ownership wanted to maintain the same, if not improve, the level of benefits offered to their staff. Desire to gain some cost controls for future renewals. Came to the Courneya Group for a review of their upcoming renewal.

The Problem

• Outsized renewal costs given current utilization

• Underutilized portions of the existing benefit plan, specifically Dental & Paramedical claims.

~$30k in non-drug Health Care Premiums were paid, Only ~$12.5k of Claims were submitted against these premiums.

The Solution

• Insured benefits for high utilization portions of the benefits, Health Care Spending Accounts to provide flexibility to employees and control costs for other benefits.

  
  

  • Comparable Group Life, LTD, AD&D, OOC Coverage for all employees.

  • Fully insured drug plan to cover employee’s prescription drug needs.

  • Health Care Spending Accounts with variable balances based on family structure for Dental, Paramedical, & Vision claims.

Financial and Employee Impact

Through the restructuring of the plan the company was able to save ~$20k annually on their employee benefit plan costs.

Employees noted that they were pleased with the increased flexibility that the plan offered them. Plan members have more choice to utilize their benefits to fit their needs. Employees also value the ability to carry unused balances forward for unforeseen costs.