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

The Client

Medium-sized Employer Operating in the Supplements Industry

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.