Vision Case Study

This company’s 100% employee paid, fully-insured Vision plan was up for renewal on January 1.  The incumbent carrier had not yet released renewal numbers; but, given the prior year’s 5% increase, another increase was expected.

In anticipation of a second increase, the employer decided that it was in their employees’ and retirees’ best interest to go to the market to ensure that the following goals were achieved:

  1. Ensuring that their employees and retirees were paying the least amount of money possible for their coverage, between premiums and out-of-pocket costs;
  2. Minimizing any potential disruption caused by changing carriers; and,
  3. Implementing a robust set of performance guarantees.

As a result of Havens & Company’s RFP and process, the company was able achieve all three goals:

  1. Plan participants will be saving not only 30% over the next five years on their Vision premiums; but, they will also have decreased out-of-pocket costs.  In addition, the company will receive an implementation credit to offset the costs associated with moving to the new carrier;
  2. Havens & Company was able to negotiate a 12 month no disruption guarantee to ensure that the transition in carriers would not impact plan participants whose provider will no longer be in-network.  Plan participants will also gain access to significantly more retail options; and,
  3. Performance guarantees specific to the company’s own experience with the new carrier (i.e., not based on the carrier’s book of business) were negotiated and implemented by Havens & Company.

Vision Savings Chart

  INFORCE RENEWAL POSITION OF INCUMBENT DURING RFP PROCESS HAVENS & COMPANY RFP RESULTS
Annual Premium $27.2M $21.4M $19.1M
Savings in First Year ------------ $5.8M $8.1M
Rate Guarantee n/a 5 Years 5 Years
Savings Over Rate Guarantee Period n/a $29.5M $40.5M

 

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