Group Moves from Fully Insured Plan to Level Funded Plan, Saves $62,000

The Client

Nutrition and Retail Company with 75 employees at the time of this event

The Challenge

One client was given no transparency on their claims cost or renewal increase because they were enrolled in a fully insured plan.

The Solution

Caravus helped the client move to a Level Funded plan that offered utilization and claims funding reports – giving the client the transparency they desired while providing Caravus the opportunity to have a consultative renewal discussion with the client each year.

The Outcome

After moving to the Level Funded plan option, the client saved $62,000. The following renewal, after evaluating the group’s claims, Caravus negotiated that year’s renewal down from a 7% to a 3% increase. The group received a $45,000 surplus after that plan year ended. The year after that, Caravus negotiated the renewal down from another 7% increase to a rate pass, and the group received another surplus of $50,000.