Fox Everett Helps Regional Manufacturer Reduce Health Plan Costs by 27% Without Sacrificing Coverage
Facing an 18% premium increase on their fully insured health plan despite stable claims, a regional manufacturing company turned to Fox Everett for a solution. By transitioning to a custom self-funded plan, Fox Everett saved the client over $400,000 in their first year, reduced health plan costs by 27%, and provided full transparency and control over their healthcare expenses. This seamless transition resulted in no employee confusion or complaints, proving the effectiveness of Fox Everett's tailored approach.
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Introduction
A regional manufacturing firm employing 155 workers was grappling with rising healthcare costs under their fully insured PPO plan. Despite stable claims and a strong commitment to employee well-being, the lack of flexibility and mounting premiums threatened the sustainability of their benefits program. Like many mid-sized employers, the company needed a smarter, more transparent solution. They partnered with Fox Everett to transition to a self-funded medical plan, complete with GAP coverage and stop-loss protection. The result was a tailored approach that delivered cost control, claims visibility, and long-term financial stability—all without disrupting the employee experience.
The Problem
Before collaborating with Fox Everett, the company faced significant challenges:
Escalating Premiums
Despite stable claims, their healthcare premiums surged by 18%.
Lack of Plan Control
The fully insured plan offered no insights into claims, no flexibility in design, and no tools to optimize spending.
Concern over Disruption
Management hesitated to make changes, fearing disruption to employees and potential backlash from any missteps in implementation.
Caught in an inflexible system, the company needed a new approach that addressed the root causes of escalating costs and provided long-term financial stability without impacting employee satisfaction.
The Solution
Fox Everett designed and implemented a self-funded health plan tailored to meet the company's specific needs while ensuring a seamless transition for employees. Key components included:
Feasibility Study
Fox Everett analyzed two years of claims data to confirm the potential savings of transitioning to a self-funded model.
Plan Design Match
To minimize disruption, the new plan closely mirrored the existing fully insured PPO plan.
Stop-Loss Protection
Fox Everett secured stop-loss coverage to safeguard the company from catastrophic claims.
Health Plan Trust Setup
A compliant trust structure was established for proper management and preservation of health plan funds.
Employee Onboarding Support
Clear communications, Q&As, and HR tools kept employees informed and confident in the new plan.
"We approached this transition with a full focus on transparency and collaboration to ensure both the employer and employees experienced a frictionless shift," a representative from Fox Everett explained.
The Results
The impact of Fox Everett’s tailored self-funded solution was both immediate and substantial:
27% Health Plan Cost Reduction
The company saw a dramatic decrease in healthcare spending, achieving over $400,000 in first-year savings.
Employee Satisfaction Preserved
Employees experienced no confusion or complaints, as the new plan closely mirrored their previous coverage.
Long-Term Control & Transparency
Claims visibility and plan flexibility empowered the company to control costs and stay aligned with both business and employee needs.
Results After 12 Months
"We expected self-funding to be disconnected and disruptive to our employees. Fox Everett made it turnkey. Our team didn’t feel a thing—and our bottom line saw a huge impact."
Conclusion
Fox Everett provided the regional manufacturer with a cost-saving solution that exceeded expectations. By switching to a self-funded plan, the client gained long-term financial control, personalized service from dedicated account representatives, and full transparency into claims costs.
The results not only stabilized healthcare expenditures but also improved employee confidence in the company’s benefits program.
Looking forward, Fox Everett’s self-funding model allows the client to adapt their plan as their workforce evolves. By continuing to work with Fox Everett, the company is positioned to maintain its commitment to employee well-being while confidently navigating future challenges.
Ready to learn how Fox Everett can help your company reduce costs and take control of your benefits plan?
Discover how Fox Everett’s self-funded strategies can help you lower costs, gain transparency, and create a benefits plan that aligns with your goals. For tailored support or to explore the right solution for your organization, contact Jay Butcher at Jay.Butcher@hubinternational.com.