Beyond the Captive: How One Client Saved $600,000 with Self Insure Wisconsin

In the world of employee health benefits, it's easy to assume that popular solutions like insurance captives are always the best choice for cost control. However, as one of our clients discovered, the most well-known option isn't always the best fit. This case study explores how a company, with the help of 5G Benefits, found a more effective solution that not only saved them $600,000 but also provided a better fit for their employees.

The Initial Situation: Captive Without Control

When the client first approached us, they were already participating in a health insurance captive. On paper, this seemed like a smart choice for managing costs. However, despite being in the captive, the client was struggling to control their health insurance expenses.

The Root of the Problem: Unaddressed Claims

The core issue wasn't the captive itself, but rather what it wasn't addressing: claims. While the captive was helping the client secure stop-loss insurance at a lower price, it wasn't tackling their biggest cost driver - the rising medical and pharmacy claims.

This situation highlights a crucial point in health insurance strategy: sometimes, what seems like the best solution on the surface doesn't address the underlying issues driving your costs.

The 5G Benefits Approach: The 9-Slot Analysis

To help the client find a more effective solution, we introduced them to our 9-Slot Analysis. This comprehensive tool provides a side-by-side comparison of various health insurance financing options, allowing clients to see the full spectrum of possibilities.

Through this analysis, the client was able to clearly see how different strategies, including their current captive arrangement, stacked up against alternatives. This clarity led them to an important realization: Self Insure Wisconsin, 5G Benefits' proprietary plan, was a much better fit for their needs.

The Solution: Self Insure Wisconsin

Self Insure Wisconsin offered the client several key advantages:

1. Enhanced Claims Control: Unlike the captive, Self Insure Wisconsin provided tools to directly address and manage medical and pharmacy claims.

2. InterceptCare: Our care navigation program helps employees make informed healthcare decisions, reducing unnecessary claims.

3. Drug Solutions: We implemented strategies to significantly reduce the cost of brand name and specialty drugs, a major contributor to pharmacy claims.

4. Customized Approach: Self Insure Wisconsin allowed for a more tailored strategy that aligned with the client's specific risk concerns and employee needs.

The Results: Significant Savings and a Better Fit

By moving from the captive to Self Insure Wisconsin, the client achieved two key outcomes:

1. Cost Savings: The company saved an impressive $600,000 on their health insurance costs.

2. Improved Employee Satisfaction: The new plan was a better fit for their workforce, leading to higher employee satisfaction and retention.

Key Takeaways

This client's experience offers several valuable lessons for other employers:

1. Look Beyond Popular Solutions: What works for others may not be the best for your organization.

2. Address Root Causes: Focus on strategies that tackle your specific cost drivers.

3. Comprehensive Analysis is Crucial: Tools like the 9-Slot Analysis can reveal options you might not have considered.

4. Tailored Solutions Yield Results: A plan that's designed for your specific needs can offer both cost savings and better employee outcomes.

At 5G Benefits, we believe in finding the right solution for each client, not just the most common one. This success story demonstrates the power of this approach. By looking beyond the captive and using a data-driven method to explore all options, our client found a solution that truly fit their needs and their budget.

Are you wondering if your current health insurance strategy is really the best fit for your organization? Contact us today to learn how our 9-Slot Analysis can help you find your perfect match.