Maximizing Savings with Level-Funded Plans for a Bay Area Employer

Client Overview
S Inc. is a dynamic company based in San Jose, CA, employing over 150 professionals. Known for its innovative approach and young workforce, S Inc. had been providing its employees with fully insured health plans, which offered comprehensive coverage but left the company unable to capitalize on potential savings from low claims utilization.

The Challenges
As a company with a predominantly younger employee population, S Inc. enjoyed a favorable medical loss ratio of 60%. However, under fully insured plans, the company was unable to benefit from this low claims experience. The insurance carrier retained all the claims savings, resulting in missed financial opportunities for S Inc.
While the leadership at S Inc. recognized this issue, they were hesitant to move to a fully self-funded model due to concerns about the risks involved in covering all potential claims. They needed a solution that would allow them to capture savings while minimizing their risk exposure.

The Solutions
Matrix proposed a solution that balanced S Inc.’s desire for savings with their need for financial security: Level Funded Plans. These plans offer the advantages of self-funding while limiting the employer’s risk, making them an ideal choice for companies like S Inc.
Results
The adoption of level funded plans led to significant financial benefits for S Inc.:
Conclusion
By introducing S Inc. to level funded plans, Matrix helped the company capture significant savings while maintaining financial security and employee satisfaction. S Inc. was able to achieve over $290,000 in total savings across two plan years without sacrificing the quality of benefits provided to their employees.
Could your company benefit from a similar
approach?
Contact Matrix today to explore how we can help you optimize your benefits strategy and realize substantial savings.