Software. Platforms. Yeah, we’ve got that! But it’s the VantagePoint human element, our HR consultants, that sets us apart. Take a look at what our clients have to say! HR Case Studies from VantagePoint.
Software. Platforms. Yeah, we’ve got that! But it’s the VantagePoint human element, our HR consultants, that sets us apart. Take a look at what our clients have to say! HR Case Studies from VantagePoint.
A growing organic food distribution company of 20+ employees was faced with their medical plan being discontinued. Their current benefits broker, let’s just say it rhymes with benefits but with a ‘z’, provided carrier alternatives that still resulted in nothing less than a 7% increase, with drastically higher out-of-pocket scenarios for the employees.
- Renewal Premiums 21.7% less than the prior broker’s ‘best’ alternative
- VantagePoint’s HRA design lowered the employee out-of-pocket expenses more than 70% from the proposed renewal
- VantagePoint implemented a fully built, fully utilized employee HR portal
- VantagePoint introduced a Flexible Spending Plan, increasing employee take-home pay and further reducing the employer’s payroll tax liabilities
- VantagePoint’s Lawsuit Avoidance Program was chosen by the company VantagePoint executed a complete suite of notification fulfillment services, including custom ERISA Documents, Exchange and COBRA outsourcing
The broker, who lost the client to this same company two years earlier, came to VantagePoint for help. After consulting with the employer, we determined that the demographics and medical history could support a lower premium plan, paired with a fully compliant HRA-Health Reimbursement Arrangement.
VantagePoint and the broker performed on-site employee education meetings, increasing employee engagement.
In addition, VantagePoint discovered the client was only utilizing 10% of the self-service HR platform previously provided to them for “free”. VantagePoint performed the complete build-out on the VantagePoint HR benefit administration platform, including HR training, compliance videos and documents.
Lastly, VantagePoint discovered compliance gaps that were closed by our service team.
A 5-year-old company providing SAP security and compliance solutions to large employers throughout the world was unhappy with receiving double digit health insurance increases with no relief in sight. With employees working throughout the US the number of carrier options was limited and the state-level compliance requirements were time consuming. Current broker continued to show plans that had higher premiums, higher out-of-pocket scenarios and higher employee premium contributions. The company wanted to put a stop to this cycle and offer a more robust package of benefits to continue attracting the quality of employees the company required.
- New medical plans paired with VantagePoint’s HRA resulted in health insurance premiums 19.1% less than the prior year
- Newly designed portal incorporated payroll, benefits and HR. On-boarding, off-boarding and on-going employee support centralized through one platform
- Medical insurance premium savings used to expand product offering as part of the company’s recruiting and retention goal. Dental, Vision, Life and Disability were newly offered benefits
- VantagePoint’s RFP (request for proposal) process provided three distinct options for the employer to choose from: continue with same internal processing with direct insurance purchasing from the carriers, a la carte outsourcing model, and full co-employment model. Consultative approach allowed the client to choose the model that best fit their goals. No need to bring in another broker to show a different ‘product’
The broker needed a different approach or possibly lose the client. She came to VantagePoint for help. After consulting with the employer, we identified a gap between benefits, payroll and HR administrative procedures. Some items were outsourced, some were done internally with little integration. With most employees working at client sites throughout the country a centralized HR communication portal was vital.
VantagePoint helped the broker prepare a full RFP looking for PEO options and outsourcing solutions. VantagePoint compiled all the data and created a client presentation of the market findings, including VantagePoint’s outsourcing solution. We determined the employer would best be served in a co-employment arrangement with a regional PEO that offered a comprehensive and intuitive HR portal.
Financially VantagePoint negotiated the PEO’s medial rates and implemented an HRA (Health Reimbursement Arrangement) alongside a portion of the PEO medical offerings. Result: employer savings of 19.1%. Employee contributions decreased by 19.3%.
VantagePoint and the broker recorded a series of employee education webex meetings, with step-by-step instructions and information related to payroll, benefits and HR documents. Webinars were posted to the portal to help future on-boarding of new employees.
A large municipality had perennial low participation in their Flexible Spending Plan. They were working with a low-cost provider per their public RFP (request for proposal) guidelines. Current third party administrator (TPA) processed all claims and then sent check runs to the Village. The Village processed and mailed checks to the participant’s home. Average turnaround time from participant claim submission to reimbursement averaged 35 – 40 days. Open enrollment was handled by information packets distributed at the Village offices.
- Participation in the program doubled
- Participant contributions increased 120%
- Debit card usage became the #1 method of payment
- Manual claim reimbursement cycle turnaround dropped from 35-40 days to 5-7 days
- Saved village personnel 16 hours of labor time per month
VantagePoint offered the following services and guaranteed an increase in participation and employee contributions. The resulting payroll tax savings were 4x higher than VantagePoint’s fees.
A new client, a full-service public relations firm for venture-backed startup companies came to us, who was using another provider for payroll and benefits.
VantagePoint discovered that the other provider completely ignored the medical Carrier’s audit request. The required audit notice only went to the other provider because they were acting as their broker. All the required documents were in their possession; they just never replied to the medical care or notified the client.
The medical carrier canceled the client’s medical coverage retroactive to the beginning of the month.
No one at the company had insurance and would not for at least 30 days, unbeknownst to them.
- Retroactively reinstated coverage so no employee was uninsured
- The re-structuring of their contract, without any changes to the benefit structure plan design, resulted in a 22% reduction in the current rates for the client.
VantagePoint’s plan of action:
VantagePoint asked for and was granted the broker of record. As soon as this was approved, VantagePoint pulled some favors using their years-long relationship with the particular medical carrier, United Healthcare, even if the audit deadline passed over 7 weeks prior.
VantagePoint was able to provide the required audit documents, obtain the remaining information from the new client, and had United Healthcare retroactively reinstate coverage so no employee was uninsured.
VantagePoint then moved on to the dental and vision coverage. Once VantagePoint reviewed all the requested documents, the team discovered that the client’s plans were set up as voluntary plans. The client did not understand the ramifications of such a designation.
VantagePoint analyzed the company census and determined that 100% of the eligible employees were enrolled, and the client was paying 100% of the single rate.
VantagePoint was able to take this information back to the carrier, Guardian, and have them, off-renewal (another favor allowed due to VantagePoint’s long-standing relationship) provide a true ‘employer sponsored’ rate. This re-structuring of their contract, without any changes to the benefit structure plan design, resulted in a 22% reduction in the current rates for the client.
The other provider originally wrote these plans incorrectly and had 3 renewal cycles to identify their error, which they never did, which cost the client thousands of dollars.
By VantagePoint doing this analysis and having the carrier make the necessary changes, VantagePoint earned less commission, but it was the right thing to do for the client.
Following several requests for a complimentary HR portal and more streamlined benefits administration, this New Jersey company with 22 employees transitioned to a new benefits administrator in April 2016. This change was part of an attractive ‘no-cost’ offer, which also involved appointing the new provider as their insurance broker for medical, dental, and vision coverage.
Servicing would be handled by a call center in Arizona. The HR portal was a self-service platform that the company discovered was their responsibility to build out.
On the first renewal, the company received a 30% increase in their health insurance plan from Aetna. They also had an HRA through this other provider; dental and vision coverage with Guardian. This other benefits administrator automatically sent a renewal spreadsheet with two Aetna options and two options from one other insurance carrier. They received a spreadsheet detailing the Guardian renewal of 9%.
However, this is what the employer received for “’no-cost offer”:
The owner gave VantagePoint’s team a call after the renewal process and asked if we could provide some guidance, something he felt was sorely lacking during the renewal process he just experienced.
VantagePoint’s analysis uncovered the following:
VantagePoint’s plan of action
Fast Forward to today
A 75-year-old restoration company with 40 employees spending $360,000 on employee benefits for their staff. The company just received a double-digit increase from Aetna for the second year in a row.
Their current broker provided three (3) options: change the carrier, increase the employee out-of-pocket scenarios, or increase the employee share of the premium. These same options were presented the year before. Employees were not happy, and the company was not happy hearing such commonplace ‘advice’.
VantagePoint was called in to provide a different perspective. We determined the following: changing carriers would create tremendous physician disruption for their staff. Employee contributions and out-of-pocket scenarios were higher than the industry average and were affecting recruiting and retention. Community-rated market did not provide any viable cost-saving options based on their employee needs.
VantagePoint Approach
The employer was happy and was ready to move forward with this PEO.
Most brokers would have stopped there. However, VantagePoint continued to dig deeper.
Did this cut the compensation to VantagePoint? It sure did, but it was the right thing to do. The employer was happy and was ready to move forward with this PEO.
Most brokers would have stopped here if they even got this far, but VantagePoint continued to dig deeper.
Did this cut the compensation to VantagePoint? It sure did, but it was the right thing to do. The employer was happy and was ready to move forward with this PEO.
Most brokers would have stopped here if they even got this far, but VantagePoint continued to dig deeper.
Did this cut the compensation to VantagePoint? It sure did, but it was the right thing to do. Think the employer was happy? You bet. Now we were ready to move forward.
A client of many years had a permanent life insurance policy. She was well into her retirement and fixed expenses were increasing.
Her daughter, the beneficiary on the policy, wanted to withdraw money from the policy to provide some additional income to support the lifestyle her mother was accustomed to.
The daughter called the insurance company directly and asked to cash out the policy. She did not ask any other questions and neither did the insurance company customer service representative.
Thankfully the insurance company sent a copy of the request to VantagePoint. We immediately contacted the policyholder and her daughter to discuss their intentions. If we did not, and let the original surrender go through they would have lost over $50,000 from the cash value, and lost the death benefit of $650,000.
VantagePoint’s plan of action
I have to say that I am very happy that I am able to continue to work with you both and the rest of the VantagePoint team. I love working with you and I hope we continue to do so for years to come.
It’s a true pleasure working with you! Your benefits expertise and presentation style are something to behold, not to mention your sense of humor. These last meetings were informative – as always – and memorable!
VantagePoint is a gem in an otherwise dark and frustrating industry.
You have played a valuable role in the development of our organization.