Industry: Hotel Chain
Expense Categories: Health Insurance
This Hotel Chain offers all the amenities of a luxury resort. In addition to having some of the most beautiful and dramatic golf courses in the country, there are also exceptional fitness facilities that include swimming, tennis and a luxurious day-spa. Their renewal rate was $622,800 annually for Health Insurance.
To decrease their yearly spend on health insurance and to find a long term solution for their ever increasing group health insurance premiums while maintaining service and quality of coverage.
We conducted a confidential, no-cost analysis of their health care expense to quickly estimate the cost savings opportunity that was available to them. We quickly determined that their renewal rates were averaging over 20% while using two different carriers. They also had one ongoing high claim and had been denied coverage by several carriers. We benchmarked their existing cost by reviewing the client’s current rates and census, compiling the information into a customized report, and then sharing the information with the client to get their approval on the savings cost basis. We analyzed the current employee makeup (average age, dependent coverage, residence of employees, and health) to determine the best long-term solution. We then presented to the management team new strategies and savings to deal with their rising costs of health care insurance.
Upon approval of the recommendations, IYP facilitated the consolidation of health insurance carriers from two to one with similar benefits. We also establish key health performance measures for their employees. We also monitored their invoices monthly to ensure they were realizing the full cost savings, identified any billing errors and established credits where applicable and finally that they were taking advantage of the best practices offered by the carrier
The client saved $131,800 annually by consolidating to one carrier with similar benefits. The savings established by ERE were approximately 21%.
IYP: 121 hours not including the ongoing hours necessary to monitor savings monthly.
Client: 10 Hours
“I’ve been impressed by the in-depth market knowledge of IYP’s category experts. We could not have found savings of this magnitude on our own.”
– Hotel Chain CFO