Oswald Replaces Outdated Health Plan, Finds More Affordable Options: A Case Study

Problem

A small manufacturer with 40 employees offered a health plan that was outdated.

The fully insured group plan cost the company about $1 million a year in premiums. A financial advisor referred the company to Oswald to take a closer look at better options for providing health benefits.

Solution

Oswald analyzed the company’s existing health benefits, which had significantly increased in price and had not evolved with employee needs.

We determined that a captive insurance plan would be ideal for the manufacturer.

Oswald also linked the company to a third-party administrator with a national network that had similar plan designs to what employees were used to.

With this plan, the company also gained claims and usage data from employees, which they never had. Having data going forward will enable the company to tweak its health plan based on the current needs of employees.

Result

The employer saved about $500,000 a year in premiums. The company took some of that money to completely fund Health Savings Accounts for all employees in one of the plan designs, providing a no-cost health care option for employees.

Additionally, between the two plan designs offered, leadership was able to lower premium contributions to all tiers. Even after fully funding the HSA for the one plan and lowering employee premium contributions, the company was still able to net $145,000 in savings.

The team at Oswald can take a close look at your benefits and find the right solutions for your company and your employees.

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