Managing the rising costs of employee benefits, especially health insurance, is a challenge for many organizations. This case study highlights how Kapnick used data-driven strategies to help three clients significantly lower their costs. By analyzing claims data and negotiating with carrier partners, we delivered substantial savings for each client.
THE PROBLEM: HIGH EMPLOYEE BENEFITS COSTS
Three clients approached Kapnick with concerns about the escalating costs of their employee benefits, particularly health insurance. Each organization faced large, one-time claims that were driving up their premiums. These challenges made it difficult for them to manage their budgets effectively.
THE SOLUTION: DATA-DRIVEN SAVINGS WITH KAPNICK LENS
To address these issues, Kapnick utilized Kapnick Lens to analyze claims data and identify cost-saving opportunities. The claims activity revealed the following:
First Client:
- A heart attack
- Injuries from a motor vehicle accident
- Two back surgeries
Second Client:
- Knee surgery with complications
- Amputation with complications
Third Client:
- Two complicated pregnancies and deliveries
In addition to these claims, further changes impacted the clients’ plans. For instance, Client B had three large claimants leave their plan, while Client C had a claimant with cancer enter remission. With this data in hand, Kapnick negotiated with carrier partners to secure significant premium reductions.
THE RESULTS: SIGNIFICANT SAVINGS FOR OUR CLIENTS
First Client:
- Reduced costs by $550,000 (26.5%) from the initial renewal quote.
- Achieved a $71,808 premium decrease from the previous year (4.5%).
- Continued to save money the following year with a 13.9% decrease.
Second Client:
- Lowered costs by $173,825 (18.9%) below their initial renewal quote.
Third Client:
- Saved $65,130 (7%) from their initial renewal quote.
Want to Learn More?
Kapnick’s data-driven approach can help your organization reduce employee benefits costs. Contact us at to discuss your needs and explore how we can assist you.
