The Power of Negotiation Translates into Cost Savings
An international manufacturer of automotive industry components with employees and retirees throughout eight U.S. states was seeking to:
- Contain its employee benefit costs
- Maintain the richness of its current benefit package
- Retain access to a strong network of physicians and hospitals.
Challenges for this client included the fact that it was without any U.S.-based human resources leadership in the organization. Further, the client was not large enough to receive adequate claim data from the carriers.
The Liberty Advantage Solution:
Because of the client’s staffing situation, our team made the commitment to establish and maintain a proactive, hands-on approach to accommodate the client’s unique needs. We took the time to get to know the manufacturer’s specific challenges, concerns and questions through a focused discovery process to develop a strategic insurance plan and a strong relationship for support.
Year over year, Liberty actively marketed the medical coverage to other carriers on behalf of the client. In doing so, we were able to leverage the competitive quotes for a reduction in the renewal increase.
By gaining a full understanding of its unique needs and advocating for the client when seeking options, the Liberty team was able to present multiple choices, along with recommendations.
Liberty was able to successfully negotiate double-digit renewal increases:
- Year one – from 13.36 percent down to 7.36 percent
- Year two – from 10.5 percent down to 2.32 percent
- Year three – from 9.8% down to 0.00%
The successful negotiations resulted in a $300,000 savings over three consecutive renewal periods. No plan design or carrier changes needed to be made; therefore, the richness of the benefit package was maintained.