Case Studies

Transforming Group Benefits through Strategic Partnership

Client Background

ABC Company is a medium-sized manufacturing firm based in Ontario. With approximately 130 employees, they offer a comprehensive employee benefits package to attract and retain top talent. Their existing group benefits plan had been managed by a longstanding advisor.

Initial Engagement

Our relationship with ABC Company began with a series of meetings with their Chief Financial Officer (CFO). Initially, the CFO was hesitant to consider alternative advisors, but agreed to allow us to conduct a financial analysis of their group benefits plan. Despite identifying some potential savings, the CFO decided to maintain their current broker at that time.

Client Background

ABC Company is a medium-sized manufacturing firm based in Ontario. With approximately 130 employees, they offer a comprehensive employee benefits package to attract and retain top talent. Their existing group benefits plan had been managed by a longstanding advisor.

Initial Engagement

Our relationship with ABC Company began with a series of meetings with their Chief Financial Officer (CFO). Initially, the CFO was hesitant to consider alternative advisors, but agreed to allow us to conduct a financial analysis of their group benefits plan. Despite identifying some potential savings, the CFO decided to maintain their current broker at that time.

Our Approach

Several years later, during a follow-up call, we revisited the possibility of conducting another financial analysis. This time, the analysis revealed more significant savings opportunities. As discussions progressed, it became evident that the CFO remained apprehensive about changing advisors. However, recognizing the need for better support, the Human Resources Manager (HR Manager) also became involved in the decision-making process.


As the company faced challenges with their existing advisor, including unresponsiveness to inquiries, the HR Manager reached out to us for assistance. We provided prompt and informative answers to their queries, demonstrating our commitment to exceptional client service.


Upon learning of ABC Company's intention to evaluate multiple brokers, we advised them to conduct interviews with potential advisors before allowing any marketing of their plan. We emphasized the importance of selecting an advisor who could provide access to the entire marketplace, ensuring the best possible options for their needs.

Our Approach

Several years later, during a follow-up call, we revisited the possibility of conducting another financial analysis. This time, the analysis revealed more significant savings opportunities. As discussions progressed, it became evident that the CFO remained apprehensive about changing advisors. However, recognizing the need for better support, the Human Resources Manager (HR Manager) also became involved in the decision-making process.


As the company faced challenges with their existing advisor, including unresponsiveness to inquiries, the HR Manager reached out to us for assistance. We provided prompt and informative answers to their queries, demonstrating our commitment to exceptional client service.


Upon learning of ABC Company's intention to evaluate multiple brokers, we advised them to conduct interviews with potential advisors before allowing any marketing of their plan. We emphasized the importance of selecting an advisor who could provide access to the entire marketplace, ensuring the best possible options for their needs.

Results

Since establishing a deeper partnership with ABC Company, we have supported them in making strategic plan design changes aimed at enhancing employee satisfaction and retention. Our ongoing guidance has empowered them to navigate benefit-related challenges, including effectively leveraging resources during union negotiations.

Conclusion

Our collaboration with ABC Company exemplifies the value of personalized service and strategic insight in optimizing employee group benefits plans. By prioritizing their unique needs and providing proactive support, we have fostered a mutually beneficial partnership focused on achieving long-term success. As we continue to evolve alongside ABC Company, we remain dedicated to delivering tailored solutions and unparalleled expertise to support their evolving needs.

Streamlining Group Benefits for Cost Efficiency

Client Background

XYZ Company is a mid-sized business operating in Ontario with a commitment to providing comprehensive benefits to their employees.

Initial Engagement

Our involvement with XYZ Company began when a financial advisor, who managed their investment accounts, had been asked to review their group benefits plan. The client was currently working with another advisor to manage the group benefits plan but was not happy with their service. The financial advisor recognized the need for specialized expertise in group benefits and he facilitated an introduction between us, the owners and plan administrator of XYZ Company. It was clear from the outset that there was a pressing issue regarding a high-dollar drug claim significantly impacting the cost of their benefits program.

Our Approach

Upon initial assessment, we assumed Agent of Record (AOR) for the existing plan and conducted a thorough financial analysis. This analysis revealed that the previous broker had been charging commissions significantly higher than necessary for plan management – an astonishing 47% more. Armed with this insight, we proceeded to explore alternative plan options in the market. Also, it became evident that their group plan was burdened by a high-dollar drug claim, significantly inflating costs The owners were aware of the situation as the affected employee had openly discussed it with them.


One innovative solution we proposed involved leveraging the Ontario Trillium Drug Plan to mitigate the impact of the high-cost drug claim. By excluding this drug from the group plan and redirecting coverage to the Trillium program, not only would the immediate drug costs be reduced, but it would also substantially decrease the pooling charge imposed by the insurance carrier.


After careful consideration and discussion with the affected employee, it was agreed that utilizing the Trillium program was a viable solution to alleviate the financial burden on both the company and its employees. With consensus reached, we transitioned the plan to a new carrier, negotiated reasonable commission rates, and implemented the drug formulary to optimize plan efficiency and affordability.

Our Approach

Upon initial assessment, we assumed Agent of Record (AOR) for the existing plan and conducted a thorough financial analysis. This analysis revealed that the previous broker had been charging commissions significantly higher than necessary for plan management – an astonishing 47% more. Armed with this insight, we proceeded to explore alternative plan options in the market. Also, it became evident that their group plan was burdened by a high-dollar drug claim, significantly inflating costs The owners were aware of the situation as the affected employee had openly discussed it with them.


One innovative solution we proposed involved leveraging the Ontario Trillium Drug Plan to mitigate the impact of the high-cost drug claim. By excluding this drug from the group plan and redirecting coverage to the Trillium program, not only would the immediate drug costs be reduced, but it would also substantially decrease the pooling charge imposed by the insurance carrier.


After careful consideration and discussion with the affected employee, it was agreed that utilizing the Trillium program was a viable solution to alleviate the financial burden on both the company and its employees. With consensus reached, we transitioned the plan to a new carrier, negotiated reasonable commission rates, and implemented the drug formulary to optimize plan efficiency and affordability.

Results

The implementation of our recommended changes yielded significant results for XYZ Company. By transitioning to a new carrier, reducing excessive commissions, and implementing the drug formulary strategy, they experienced a notable reduction in overall premiums required to fund the benefits plan. Furthermore, the redirection of the high-cost drug coverage to the Trillium program alleviated financial strain for both the company and its employees.

Conclusion

Our collaboration with XYZ Company exemplifies the impact of tailored solutions and strategic planning in optimizing employee group benefits plans. By addressing specific pain points, negotiating favorable terms, and leveraging innovative strategies, we were able to deliver tangible results that positively impacted both the company's bottom line and the well-being of its employees. As we continue to support XYZ Company in navigating their benefits landscape, we remain committed to delivering proactive, client-focused solutions that drive long-term success.

Small Business Health Care Spending Account Success

Client Background

The client was a small business owner referred by their accountant, seeking guidance on implementing employee group benefits. With 10 employees, the owner desired benefits for themselves and their staff, while being mindful of cost. Additionally, most of the employees' spouses already had coverage, which influenced the owner's decision-making process.

Initial Engagement

Upon initial engagement, it became evident that traditional benefit options were not financially viable for the business. Recognizing the need for an alternative approach, we introduced the concept of a Healthcare Spending Account (HCSA) to the client. This solution offered the flexibility the owner sought, allowing them to set a budget without concerns of premium increases at renewal.

Our Approach

We conducted thorough discussions with the owner to understand their budget constraints and employee needs. Based on this information, we devised a tailored approach. Two distinct classes were identified: managers and other employees. Managers were offered HCSAs worth $3,000/year, with a one-year carry forward, encompassing catastrophic and Out of Country (OOC) coverage. Other employees received HCSAs worth $2,000/year, also with a one-year carry forward and inclusive of catastrophic and OOC coverage. Furthermore, we explored the owner's personal requirements and discovered their interest in leveraging our partnership with Medcan, a private health clinic. Consequently, we facilitated the inclusion of an HCSA worth $20,000/year for the owner, with similar benefits and coverage options.

Our Approach

We conducted thorough discussions with the owner to understand their budget constraints and employee needs. Based on this information, we devised a tailored approach. Two distinct classes were identified: managers and other employees. Managers were offered HCSAs worth $3,000/year, with a one-year carry forward, encompassing catastrophic and Out of Country (OOC) coverage. Other employees received HCSAs worth $2,000/year, also with a one-year carry forward and inclusive of catastrophic and OOC coverage. Furthermore, we explored the owner's personal requirements and discovered their interest in leveraging our partnership with Medcan, a private health clinic. Consequently, we facilitated the inclusion of an HCSA worth $20,000/year for the owner, with similar benefits and coverage options.

Results

Through our tailored approach, we successfully addressed the client's budgetary concerns while meeting the desired benefits for both the owner and their employees. The implementation of HCSAs aligned well with employees whose spouses already had coverage, optimizing the benefits package. Additionally, by utilizing HCSAs, we were able to secure substantial savings for the owner's utilization of the Medcan health management tool. Moreover, the arrangement allowed for the corporation to cover the costs with pre-tax dollars, further enhancing the financial benefits.

Conclusion

Our collaborative approach, guided by thorough discussions and understanding of the client's needs, resulted in a customized benefits program that not only fit within the budget constraints but also provided essential benefits desired by the employees. By offering innovative solutions like HCSAs and leveraging partnerships, we were able to deliver tangible value and optimize the client's benefits package, ultimately contributing to their satisfaction and the well-being of their workforce.

Optimizing Group Benefits for Multi-Business Client

Client Background

Our client, comprising two businesses with multiple shareholders across four locations, prioritizes the well-being of their approximately 110 employees. Their commitment to providing a comprehensive benefits package reflects their dedication to employee satisfaction and retention.

Initial Engagement

The client was initially hesitant to switch from their existing advisor despite the potential for cost savings. However, a few years later, concerns about value for money and plan suitability prompted a re-evaluation of their group benefits.

Our Approach

Understanding the diverse demographic and varied needs of their workforce was paramount. We conducted thorough discussions with both the client and their employees, gathering valuable feedback through surveys. It became evident that the existing plan was not effectively meeting the needs of employees across different age groups, and certain benefits were underutilized.


With this insight, we proposed a tailored plan design that included comprehensive drug coverage with out-of-county benefits and hospitalization, supplemented by a Health Spending Account (HSA) to cater to the diverse needs of employees. Additionally, we retained basic dental coverage to ensure essential care.


To ensure the best possible options, we meticulously marketed the proposed plan to various carriers and Third-Party Administrators (TPAs), presenting both the existing plan design and our suggested alternative. This comparative approach ensured that the chosen plan would not only meet the client's needs but also offer the best value for their investment.

Our Approach

Understanding the diverse demographic and varied needs of their workforce was paramount. We conducted thorough discussions with both the client and their employees, gathering valuable feedback through surveys. It became evident that the existing plan was not effectively meeting the needs of employees across different age groups, and certain benefits were underutilized.


With this insight, we proposed a tailored plan design that included comprehensive drug coverage with out-of-county benefits and hospitalization, supplemented by a Health Spending Account (HSA) to cater to the diverse needs of employees. Additionally, we retained basic dental coverage to ensure essential care.


To ensure the best possible options, we meticulously marketed the proposed plan to various carriers and Third-Party Administrators (TPAs), presenting both the existing plan design and our suggested alternative. This comparative approach ensured that the chosen plan would not only meet the client's needs but also offer the best value for their investment.

Results

The client opted for the alternate plan design, recognizing its ability to better address the varied needs of their workforce while remaining within their budgetary constraints. Consolidating both company plans into a single entity streamlined reporting and billing processes, leveraging increased coverage volumes to reduce costs. Transitioning from a traditional insured plan to an Administration Services Only (ASO) platform provided additional savings and operational efficiency, a decision that has proven successful over the years.

Conclusion

Through collaborative engagement and a deep understanding of our client's requirements, we were able to transform their group benefits strategy to better align with the needs of their diverse employee base. By optimizing plan design, leveraging our industry expertise, and implementing cost-effective solutions, we not only achieved significant savings but also ensured that the client could offer their employees a comprehensive and tailored benefits package. This successful partnership underscores our commitment to delivering value-driven solutions and exceeding client expectations.

Share by: