Managing segmented benefit plans across multiple locations can be a significant challenge for manufacturers. A new client in the automotive parts manufacturing industry, with approximately 1,000 employees, faced this exact issue. With segmented plans across three locations, a mix of union and non-union workforces, and complacent brokers, they were hit with a 25% premium rate increase upon renewal. Kapnick stepped in to provide a proactive solution, demonstrating the value of consolidated benefit plans for manufacturers.
THE PROBLEM: SEGMENTED BENEFIT PLANS AND RISING COSTS
The manufacturer’s segmented benefit plans, combined with brokers who failed to utilize claims data or address risks, led to a steep premium increase. With ownership demanding better results, the company needed a solution to streamline their benefits and reduce costs.
THE SOLUTION: KAPNICK’S PROACTIVE APPROACH
Kapnick implemented a consolidated and proactive strategy to address the client’s challenges. Key elements of the solution included:
- Service Model: A dedicated team of professionals to manage the transition.
- Kapnick Lens: Advanced analytics and data management to identify cost-saving opportunities.
- Call Center: Consistent messaging and support for all locations.
- Compliance Services: Critical during the transition, especially with the onset of the Covid-19 outbreak.
- Wellness Programs: Phased-in well-being services tailored to each location.
THE RESULTS: SIGNIFICANT SAVINGS AND ENHANCEMENTS
Kapnick’s approach delivered impressive results:
- Reduced the renewal increase by 15%, saving $1.4M.
- Enhanced benefits, including plan maximum increases, wellness programs, online enrollment, EAP, and call center services.
- Achieved these results within just three months of becoming the Agent of Record.
Want to Learn More?
Kapnick can help your organization streamline benefits and reduce costs. Contact us at to explore how consolidated benefit plans for manufacturers can benefit your business.
