HRA Implementation for Targeted Benefits

Company Overview

A New York city financial services client with 225 employees.

Key Challenges

After being presented with a fifteen percent increase in their health insurance premiums during their last renewal, this client explained to us that they would be unable to maintain their current high-level benefit portfolio. Unfortunately, a reduction in benefits would have an enormous impact on their ability to be competitive and attract necessary talent.

MBA Solution Presented

After a thorough review of this client’s benefit programs and utilization data, our team recommended a targeted plan, modifying the core health plan slightly by decreasing benefit levels in less utilized areas and incorporating a Health Reimbursement Account. The HRA would enable lower out-of-pocket costs for employees while saving significant premium dollars. By focusing on less utilized higher benefit costs, the HRA plan helped offset higher employee co-pays and coinsurance.

Measurable Results

The changes made for this client resulted in an 11% overall decrease in employee benefit premiums, resulting in an annual savings of $244,000.