R2I client case | Central Ohio professional services | 32 employees
Executive summary
A higher benefits bill does not mean you must change how your plan is funded. A 32-employee professional services firm in Central Ohio worked with Ready-2-Insure to compare regional carriers and offer new plan choices. The firm stayed fully insured and lowered employees’ share of family premiums.
R2I reports $97,200 in annual savings, about 20% against the prior $485,000 annual spend. Employees’ share of family premiums dropped from 28% to 19%.
The results at a glance
| Measure | R2I-reported result |
|---|---|
| Firm size | 32 employees |
| Prior annual spend | $485,000 |
| Annual savings | $97,200 |
| Savings against prior spend | About 20% |
| Employee share of family premium | 28% → 19% |
| Funding approach | Fully insured |
The challenge: five years of rising benefit costs
The accounting and professional services firm had seen costs rise 47% over five years with a national carrier. Leaders needed to lower costs while keeping benefits useful to employees and their families.
The employer wanted to stay fully insured. With this type of plan, the company pays an insurer a premium to cover claims that meet the policy’s terms. R2I looked for better carrier rates, plan choices and access to routine care.
The solution: improve the whole benefits package
Bring regional carriers into the comparison
R2I asked regional carriers to submit plan offers through a request for proposals. The firm could then compare those offers with its current national carrier.
The review looked at premiums, doctors, hospitals, covered drugs and employees’ share of costs. For a Central Ohio employer, the choices must be clear: what does each plan cost, and where can employees get care?
Give employees clearer plan choices
The new plan lineup offered three choices. Each had a different mix of premium share and out-of-pocket costs. Employees could compare those choices with their household’s needs.
The package also included a limited-purpose flexible spending arrangement. This account can help pay for eligible costs such as dental and vision care. Its fit depends on the medical plan and whether employees qualify. IRS Publication 969 explains how these accounts can work with health savings accounts.
Add direct access to primary care
R2I added direct primary care at $85 per employee per month. The membership fee pays for a set of primary care services. It works with the medical plan and does not replace medical insurance. AAFP: Direct Primary Care
Address the next renewal
The plan included an 18-month rate guarantee and a 4.2% renewal cap, as reported by R2I. Those terms gave the firm a clearer basis to plan ahead after past renewal increases of 12% to 15%. These were terms for this group. Offers and rules vary by carrier and employer.
Results: lower spending and a smaller family contribution share
$97,200 in reported annual savings. That equals about 20% of the prior $485,000 spend. The firm kept fully insured coverage.
Family contribution share fell nine percentage points. Employees’ share of family premiums moved from 28% to 19%. This is a change in premium share. It does not mean every household saved the same dollar amount.
Urgent care use declined. R2I reports 34% fewer urgent care visits in the period compared, after direct primary care was added. This shows a change in use. It does not show how much each plan change caused that result.
What Ohio employers can take from this case
A useful renewal review looks beyond the headline increase. Comparing carriers, plan choices and each side’s share of premiums can reveal ways to improve a fully insured plan.
R2I’s employee benefits review starts with the employer’s needs and available options. Learn more about R2I’s approach and what to prepare for a renewal review.
Fully insured plan FAQs for Ohio employers
Can a small Ohio business reduce costs while staying fully insured?
It may be possible. Compare real carrier quotes, coverage terms and who pays what. The result depends on the group and available options.
Is a regional carrier necessarily less expensive?
No. Check the rates and access to care for your group. A carrier’s size alone does not tell you its value.
Does direct primary care replace group health insurance?
No. It covers the services listed in the membership agreement. The group still needs medical coverage for care outside that agreement.
Is an 18-month rate guarantee available to every Ohio employer?
No. Rate terms and renewal caps depend on the offer and contract. Check which rates and time periods are covered, along with any exceptions.
Put your next renewal in context
Bring your renewal date, plan summaries and contribution schedule. R2I can help you compare the options available to your Ohio business.
Source: R2I-reported results for an anonymous client. These are one employer’s results. Savings are not guaranteed for other groups.