XYZ Corporation, a midsized company with 125 employees, was facing the challenge of rising health insurance costs while striving to provide quality benefits for their workforce. In 2020, they made the strategic decision to transition to a level funded health insurance program to improve cost control and enhance employee benefits.
XYZ Corporation was grappling with traditional fully insured health plans that offered limited cost control and lacked transparency. Premiums were escalating annually, impacting the company’s bottom line and putting pressure on employees who had to bear higher premium costs. Additionally, the lack of transparency in claims made it difficult for the employer to understand and manage healthcare expenses effectively.
By transitioning to a level funded health insurance program, XYZ Corporation successfully reduced costs, provided enhanced benefits to employees, and gained unprecedented transparency in claims data. This case study illustrates how level funded health insurance can be a strategic and cost-effective solution for midsized companies looking to control healthcare expenses while improving employee benefits and satisfaction.