Vision Case Study
This company’s 100% employee paid, fully-insured Vision plan was up for renewal on January 1. The incumbent carrier had not yet released renewal numbers; but, given the prior year’s 5% increase, another increase was expected.
In anticipation of a second increase, the employer decided that it was in their employees’ and retirees’ best interest to go to the market to ensure that the following goals were achieved:
- Ensuring that their employees and retirees were paying the least amount of money possible for their coverage, between premiums and out-of-pocket costs;
- Minimizing any potential disruption caused by changing carriers; and,
- Implementing a robust set of performance guarantees.
As a result of Havens & Company’s RFP and process, the company was able achieve all three goals:
- Plan participants will be saving not only 30% over the next five years on their Vision premiums; but, they will also have decreased out-of-pocket costs. In addition, the company will receive an implementation credit to offset the costs associated with moving to the new carrier;
- Havens & Company was able to negotiate a 12 month no disruption guarantee to ensure that the transition in carriers would not impact plan participants whose provider will no longer be in-network. Plan participants will also gain access to significantly more retail options; and,
- Performance guarantees specific to the company’s own experience with the new carrier (i.e., not based on the carrier’s book of business) were negotiated and implemented by Havens & Company.
Vision Savings Chart
| ||INFORCE ||RENEWAL POSITION OF INCUMBENT DURING RFP PROCESS ||HAVENS & COMPANY RFP RESULTS |
|Annual Premium ||$27.2M ||$21.4M ||$19.1M |
|Savings in First Year ||------------ ||$5.8M ||$8.1M |
|Rate Guarantee ||n/a ||5 Years ||5 Years |
|Savings Over Rate Guarantee Period ||n/a ||$29.5M ||$40.5M |