Oswald Helped a Client Reduce Net Costs by More Than 50% Introducing ICHRA: A Case Study

A private equity-backed manufacturing client needed to explore alternatives to traditional group medical plans after seeing a steep renewal increase for the upcoming plan year. The company, an Oswald client since October 2023, was facing a 45% increase, which would have increased costs by $170,000 annually.  

The company, which had fewer than 100 enrollees on their medical plan, needed national networks due to the location of their employees (Northeast and Midwest regions). However, national carriers would not budge on the renewal because of a high-cost claimant on the plan.  

Many times, Oswald is able to negotiate directly with insurers to resolve issues. When that approach does not work, we explore alternative options.  

Solution:  

Unable to absorb the increase, Oswald connected the client with our individual solutions team at UROne Benefits. We introduced them to the concept of an Individual Coverage Health Reimbursement Arrangement (ICHRA), a type of plan that allows employers to provide a fixed monthly allowance for employees to purchase individual insurance through the ACA Health Insurance Marketplace or Medicare.   

Our team explained that an ICHRA could help the client reduce their renewal exposure and fix future costs while continuing to meet the needs of employees.  

The client transitioned to our ezICHRA platform, which helps employers migrate seamlessly to an ICHRA. The ezICHRA team worked with the client to design a program tailored to their organization. Our knowledgeable ezICHRA advisors met with each of the client’s employees to assist them in selecting a plan suited to their needs and the needs of their dependents.  

Results:  

The client’s net costs were reduced by more than 50% as a result of the transition. Employee feedback has been positive, thanks to the access to additional carriers and networks and the ezICHRA team’s concierge-level of service. Our ezICHRA advisors are available throughout the year to help employees with claims questions and network assistance.  

This is just one example of how the Oswald team works creatively to find the right solution for our client’s specific needs.

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