When traditional healthcare benefits threatened both employee access and company financials, a strategic pivot to ICHRA revolutionized this employer’s approach to benefits.
Key Results
The Challenge
A large, multi-location senior living employer with a diverse workforce faced an impending benefits crisis that threatened their operational stability. Despite these pressing issues, their former broker seemed out of answers. The reference-based pricing model they'd implemented was causing more problems than it solved, leaving the client in dire need of a solution that would provide the care their employees needed without dramatically increasing costs to the already tight margin of the business.
Why They Need Change
A projected 40% increase in costs if they left their current referenced based pricing arrangement
Low health plan enrollment created a high-risk, high-cost pool
Employees faced unexpected balance billing and access issues at healthcare providers
The small HR team struggled to manage an increasingly complex benefits landscape across multiple locations
The Cottingham & Butler Approach
Comprehensive Discovery & Analysis
Our approach begins with deep financial and workforce analysis to understand the unique challenges of each organization. For this employer, we examined their healthcare landscape across 22 locations, considering their diverse workforce and varying healthcare needs.
Uncovered significant cost variations across employee populations
Identified healthcare access challenges impacting employee satisfaction
Assessed market conditions creating opportunity for strategic change
Strategic ICHRA Design
We believe in developing solutions that create both immediate impact and long-term stability. Our team leveraged Wisconsin's strong individual market to design a program maximizing value for both the organization and its employees.
Created flexible reimbursement structure across 22 locations
Expanded from 1 plan design to 93 employee plan options
Structured program for predictable long-term renewals
Accelerated Implementation & Support
Our implementation strategy prioritizes clear communication and comprehensive support to ensure successful transitions. We developed a focused rollout plan that simplified this complex change for employees.
Completed full implementation within 60 days
Provided on-site education at key locations
Delivered one-on-one enrollment support for all participants
What is ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees tax-free for individual health insurance and qualified medical expenses. It offers flexibility, potential cost savings, and increased choice in health coverage for both employers and employees.
Ideal For Organizations With:
Low health plan participation
Unpredictable renewals
Diverse workforce needs
Multiple locations
Senior care, retail, or hospitality focus
Desire for cost stability
Unpredictably high renewal (20%+)
Large ongoing claimants that cannot be controlled
Ready to revolutionize your HR processes? Contact us today to begin your journey!