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Benefits Increased, Costs Reduced Following Merger: A Case Study
Problem
Our Ohio-headquartered client with a workforce primarily located in North Carolina acquired a company based in Texas. The employees at the North Carolina location were provided a low-benefit, minimum essential coverage medical plan. However, the Texas location offered more traditional medical plans and generous ancillary benefits.
Our client hoped to consolidate the two benefit programs. However, they did not want to substantially reduce benefits for the new acquisition or substantially increase costs at the North Carolina location.
Solution
Oswald worked with individual carriers to consolidate the medical and ancillary plans ultimately choosing a new insurance provider. Oswald negotiated a favorable renewal with the ancillary benefit carrier that extended the Texas benefits to the North Carolina employees.
A minimum essential coverage medical plan was also offered to Texas employees, which some selected due to the significantly lower employee contribution.
Result
The new health plan reduced overall costs by about 10%.
As part of the consolidation of benefits with the various carriers, Oswald negotiated a technology credit of $11,000 and a wellness credit of $5,000.
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NOTE: This content is for informational purposes only and is not intended as a representation of likely outcomes. Each scenario is different. Speak to an Oswald insurance advisor to discuss your particular situation.
