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Problem

A nonprofit with 86 employees absorbed a 32% increase for employee health benefits in 2024. They were told by their existing broker that premiums would go up another 25% in 2025.

Upon being questioned, the broker said the best they could do was to reduce the premium increase to 15%. In addition, the broker told the organization they would have minimal involvement in the relationship going forward.

Faced with an unacceptable increase and the prospect of an absentee broker, the executive director reached out to a new board member who also works for Oswald.

Solution

Oswald analyzed the nonprofit’s existing employee benefits package, which gave employees the option to choose from five different health insurance plans. We also evaluated the needs of the employees.

Oswald recommended the nonprofit cover health insurance under an Individual Coverage Health Reimbursement Arrangement, or ICHRA.

Under an ICHRA, employees can choose their own health care plan that fits their unique needs. The employer then reimburses them for the premiums.

Oswald launched an employee communication plan to help them understand their new benefits.

Result

• The employer saved a minimum of $250,000 a year in premiums.
• Employees got lower copays and better benefits that suited their individual needs.
• The ICHRA plan was modeled off a $0 deductible plan – same network lower copays – which was an improvement from their most robust plan of a $1,500 deductible.

The team at Oswald can take a deep dive into your existing benefits to determine your needs and find the best benefits options for your employees.

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